Client parnter is a full-time university student. Both are Muslims and under Islamic, or Sharia law they cannot pay or earn interest. The law forbids making money from money. As a result the partner has not made an application for a student loan but the local authority have treated him as possessing a student loan on the basis that he could acquire a loan "by taking reasonable steps to do so".

Given the wording of the regulation is there any argument that can be used by the claimant to exclude the student loan. The claimant would have an entitlement to HB where the loan were excluded.

Could there be a human rights argument here? Means tested benefits are a possession (recent case of Stec)and Article 14 (discrimination) could be engaged on the basis of discrimination on religous grounds.

You should also use Article 9, freedom of thought, conscience and religion, which states: -

1. Everyone has the right to freedom of thought, conscience and religion; this includes freedom to change his religion or belief and freedom, either alone or in right community with others and in public or private, to manifest his religion or belief, in worship, teaching, practice and observance.

2. Freedom to manifest one's religion or beliefs shall be subject only to such limitations as are prescribed by law and are necessary in a democratic society in the interests of public safety, for the protection of public order, health or morals, or for the protection of the rights and freedoms of others.

Regards
Paul

Can he apply for a Sharia loan from a bank. This is a interest free loan which complys with Muslum law and I understand LLoyds or HSBC do these type of loans as do the Muslum Bank of Great Britain.

It is not clear cut that Student Loan interest is definitely considered "Riba" (money made from money) under Sharia law: some scholars think it does not constitute Riba because you pay back the same value as you borrowed, adjusted for inflation.

Even if it is considered Riba, it has been argued that if not taking the loan because it is Riba impedes someone's essential education, it should be taken anyway, then repaid as soon as possible.

The Islamic Bank of Great Britain offers sharia-compliant loans for variouas purposes, including education.

For more information about these matters and links to discussions by Muslim scholars, see our web-page about Student Loans and Sharia Law at Queen Mary, University of London:

http://www.welfare.qmul.ac.uk/money/sharia.html