Introduce Alternative Student Finance product by September 2019

Many Muslims are unable to attend university because their faith prohibits them from taking interest based loans to fund tuition fees.The govt have agreed on an alternative financing model in 2014. 4 years later and it is yet to be made available. Each year students are affected without any options.

The most recent response from the universities minister states; '...it typically takes 2 years to produce an alternative finance product. That would rule out the 2018/19 academic year' The solution was agreed upon in 2014 and it was indicated then that it wouldn't be until 2016/17 academic year. Despite this, islamic finance experts have stated that it can be put into place from scratch within 8 to 12 months. Students should no longer be denied access into education simply because if their faith

The Government is committed to introducing an Alternative Student Finance product.

The Government consulted on the topic in 2014 and secured the necessary legislation in the Higher Education and Research Act 2017. Since then, we appointed specialist advisers in Islamic finance to advise us on the design and implementation of a suitable product. We have been working through the complex range of policy, legal and system issues that need to be resolved, in order for us to develop and eventually launch an alternative student finance product compatible with Islamic finance principles.

However, the work that we are undertaking on Alternative Student Finance (ASF) has strong links to the Post 18 Review of Education and Funding, which is aiming to ensure that the education system for those aged 18 years and over is accessible to all, is supported by a funding system that provides value for money, works for students and taxpayers, incentivises choice and competition across the sector, and encourages the development of the skills that we need as a country.

It is clearly important that we take account of the findings of the Review when designing the new Alternative Student Finance regime. This will ensure that students in receipt of alternative finance are not disadvantaged compared to their peers receiving mainstream student support.

The Post-18 Review will conclude this year, and we are aiming to present plans for the implementation of ASF to a similar timescale. Implementation timetables themselves will depend on the Government’s response to the Review’s findings and recommendations.