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Islamic finance over the last three decades or so has grown into a huge industry. It is huge both in the sense that vast sums of money are handled by Islamic finance, and also in the sense that a great many scholars have been attracted to it, and they have helped to invent or justify financial instruments which claim to make it lawful for Muslims to do things with their money very similar to the things that non-Muslims do with theirs. Yet, if using the word 'Islamic' before 'finance' is to mean anything at all, it should mean the kind of finance that belongs in Islam, the kind that Muslims acting specifically as Muslims engage in when they are producing and exchanging goods and services, and generally building up their individual and collective means of livelihood.

Most ordinary Muslims are, I think rightly, suspicious and cautious about accepting the permissibility of many of these instruments. It does not help matters that banks and investment companies run by and for non-Muslims are happy to use these same Islamic financial instruments because it helps them to attract and keep Muslim customers.

That sounds very similar to, for example, a supermarket stocking halal meat in the hope of attracting the business of the Muslims in its neighborhood. It is indeed similar, but it is not the same. There are known and clear procedures that must be followed before meat is called halal, and perhaps it does not matter that, at the final point of sale, the retailer is a non-Muslim – provided those procedures have been correctly and fully observed. It is not at all so clear-cut with money. Money is something abstract and symbolic as well as real and concrete. It is not just a store and physical sign of value; it is also a means of assigning and exchanging the values of different goods and services. Accordingly, it permeates all human relationships that are connected in any way to the exchange of goods and services.

That is why it matters very much to Muslims to know that the money that is circulating among and around them is, from an Islamic point of view, sound and safe, and that the transactions being done with that money are also sound and safe. The scholars engaged in developing, and justifying, Islamic financial instruments are engaged in the effort to provide Muslims with the assurance that those instruments are sound and safe from an Islamic point of view.

In order to judge whether and how far those scholars have succeeded in achieving this goal, it is necessary to step back and ask how we can know if a practice is sound from an Islamic point of view. Before we can do that we need to take a further step back and ask whether and how far such a task is possible at all. In other words, before I get into a discussion of particular instruments and contracts now being offered as Islamic finance, I want to establish as clear a framework as possible for this discussion. This is a necessary prelude to reaching a balanced judgment about these instruments and contracts based on a sufficient appreciation of the external necessities and the internal assumptions and arguments (some persuasive, some not) which have led Muslim scholars to seek out some sort of Islamic rationale for various modern financing techniques.

The world as we find it has in it three distinct orders that overlap and interpenetrate. The largest order encompasses all creatures, living and non-living, human and non-human, Muslims and non-Muslims, all together. We can call it “the natural order”. It is perceptible and intelligible to human beings; to some extent they can work out how it operates and, in some measure, influence and control what happens around them. This order includes the boundaries of time and space, and what modernists in the West call the laws of nature, to which everyone and everything is subject, involuntarily. Within that natural order, there is “the religious order” of divine commands communicated to human beings through God's prophets and messengers. This order is addressed specifically to human will, and demands a conscious, consenting, voluntary obedience. Finally, there is “the Islamic order” of divine instructions that bind specifically Muslims, commanding or commending them, through the Book and the teachings of God's Messenger to live in certain ways and to avoid certain other ways.

Because these three orders exist together in the one same world, it is sometimes the case that the approval of a certain way of acting as Islamic, as conforming to the Book and Sunnah, does not at all contradict its being approved by non-Muslims as “practical' or “useful” or “sensible” or “healthy” for the individual or for society. Non-Muslims just like Muslims get hungry and need food; get ill and need medical attention; get attacked and need to fight; get curious and need to explore and travel. Then, if Muslims find notably effective ways of serving these needs, we cannot be surprised if non-Muslims adopt those ways. That is obvious. It is also obvious that the converse applies: to serve their basic wants and needs, Muslims can in principle adopt ways that are or were the ways of non-Muslims. That is surely true. But it is also true to say that, in some instances, no matter how “useful' or “efficient” certain means are for the achievement of certain ends, Muslims as Muslims will reject them as unIslamic. How do they decide when they may and when they may not adopt the ways of non-Muslims? This is not an easy question. For the time being, let us note that if we are going to refuse certain financial instruments or transactions as unIslamic, we cannot do so simply on the basis that they are of “Western” or non-Islamic origin. We must have a better reason than that.

When we try to implement the rules and norms that constitute the Islamic order, we are not exempt from the conditions that obtain in the natural order. Accordingly, those Islamic rules and norms must be implemented with a measure of flexibility. For example, in a situation of necessity, where Muslims have no freedom of action or choice, what is normally prohibited is considered lawful for the duration of the necessity. This indulgence is intended to be temporary, exceptional. It is conditional on Muslims not desiring that which is normally prohibited. The only reliable proof that Muslims are not desiring what is normally prohibited to them is that they are striving to remove themselves from the situation in which they have no freedom of action to a situation where they do have such freedom. So, even if we are forced to adopt novel kinds of financial instruments or transactions on the basis that Muslims are so powerless in the world that they have no choice but to submit to the global financial order, there is, nevertheless, no compulsion whatever to legitimize such instruments or transactions by calling them “Islamic finance”.

All humans in the normal state of things have a measure of freedom of action. What distinguishes Muslims as Muslims is that, in the normal state of things, they strive to use that freedom of action in obedience to the will of God insofar as that is known to them through the teachings of Islam. To the extent that they consciously strive to do that, their lives fulfill the purpose for which the Book tells us they were created, namely to worship God. For believing, practicing Muslims, the natural order of this world, its being perceptible, intelligible, useful, beautiful, etc., is the wide space, provided by the Creator, within which human freedom of will and action are experienced as a reality. If the natural order were not as reliable as it is, freedom of will would not be experienced as real. But the natural order is there, real and reliable. That is why human life in this world can function as an enabling test, a test through which Muslims learn to perfect their obedience to God's will and so earn the promised recompense hereafter. Thus, we should expect from Islamic finance and the financial instruments it invents or justifies that they help Muslims to (at least) avoid doing what God has prohibited, and (ideally) help them to do more easily and conveniently what God has permitted. This is not a matter of clever word games, clever labeling. Surely Muslims will not accept as permissible the kinds of transaction they had long believed to be prohibited, even if Islamic economists find clever ways to label them as permissible.

But, you will ask, how are things known to be permitted or prohibited; how do they get entered into one or the other category? The answer is that we find out by referring to Islamic teachings on the matter in question. But then we must ask: how do Islamic teachings decide the matter in question?

In answering that, people often confuse two things – they confuse the authoritative sources of Islamic teachings, the Qur'an and Sunnah, with the rulings derived from those sources by Muslim scholars. The confusion leads to very serious difficulties for Muslims if, in principle or in practice, they accord to the derived rulings the authority of the primary sources. For reasons that will become clear later, I will use for the derived rulings the term “doctrines”. For the teachings in the primary sources, I will use the term “guidance”. Now, we can and do refer to the doctrines that constitute the Islamic legal and cultural tradition that we have inherited. We study and respect those doctrines; we learn from them; if we don't know any better (and 99.9 per cent of the time we really don't know any better), we follow them to the best of our ability in our circumstances. But the promised recompense hereafter for obedience to God's will does not depend on our following the derived doctrines; it depends for sure on our following the guidance in the primary sources. Of course, for most of us most of the time, because of our deficiencies in 'ilm and taqwa, in our knowledge and wariness of God, following the doctrines is the best way we know of following the guidance.

Abu Bakrah ath-Thaqafi (may Allāh be pleased with him) reported – The Prophet said “If two Muslims meet each other with their swords, then both the killer and the killed will be in the Hell-fire.” I said, “O Allāh's Messenger, that is the case for the killer but why should that be the case for the killed?” He answered, “Because he wanted to kill his companion.” [Al-Bukhari & Muslim]

Shaykh Ibn Uthaymeen (may Allāh have mercy on him), in his explanation of this hadith says that the condition of the sentence “When two Muslims meet with their swords” does not exclusively refer to a sword; the term applies to any weapon with which two Muslims intend to cause harm, leading to death for the other. Any weapon such as, a sword, rifle, rock, etc. that is used intentionally to cause damage to another Muslim is prohibited in Islam. The reference to two Muslims spells out the nature of the meeting – they both have the intention to do harm to one another. If any Muslims meet with a method by which they can kill, and one of them is successful in killing the other, then both, the killer and the killed shall be in the Hell-fire.

Abu Bakrah (may Allāh be pleased with him) said to the Prophet , “This is the killer” This type of statement, the repetition of the announcement as a fact, is known in the field of discussion as an agreement to what was said. Allāh says,

“Whoever kills a believer intentionally, his recompense is Hell, he shall abide therein forever. The wrath and the curse of Allāh shall be upon him, and a great punishment is prepared for him” [93, Al-Nisa'a].

This makes it clear why the killer shall be in Hell, but what about the one killed?

Upon Abu Bakrah's questioning about the killed, the Prophet said, “He was eager to kill his companion” This shows that even though he was killed, this individual will abide in Hell because of his intention and actions. The result, his failure and subsequent death, does not absolve him of the sin. Intention alone, however, is not the only determining factor. The fact that this man brought a means — a weapon, to fulfill his intention is what sealed his fate in Hell. His bringing a weapon shows that he was, “eager to kill his companion.” Success and failure are insignificant because both men are destined for the Hellfire.

This hadith proves that actions are according to their intentions, and that when this man intended to kill his companion, it was as if he actually did kill him.  There is, however, a stark difference between these men and martyrs. The Prophet stated, “Whoever is killed protecting himself is a martyr, whoever is killed protecting his family is a martyr, and whoever is killed protecting his wealth is a martyr, [and whoever is killed protecting his deen is a martyr]” [Abu Dawud and at-Tirmidhi]

One who is being attacked and acts in self-defense is not the aggressor; therefore if in the course of defending himself, a man kills an aggressor he is no punished for the act. The Prophet stated that one who comes to take another's wealth by force, “If you kill him then he shall be in the Fire, and if he kills you then you are a martyr” [Muslim]

The person who is defending his wealth, family, self and honor is only warding off an aggressor, one who is not repelled except by fighting (him off). If he kills the aggressor, the aggressor shall be in the Fire, and if he is killed in self-defense then he shall be a martyr in Paradise.

There is proof of the graveness of killing in this hadith it is from the reasons of entering Hell, we seek refuge with Allāh. There is also proof in this that the companions (may Allāh be pleased with them) used to mention (any) lack of clarity (regarding a matter) to the Prophet , and he used to answer them. That is why we do not find anything from the Qur'ān and Sunnah that really contains any lack of clarity, except that the answer to it is known.  Either the answer is known through the Qur'ān and Sunnah without having any questions being brought up (by the companions), or through having a question brought up (by the companions) which is answered (by the Prophet ).

Another example of that is when the Prophet foretold about the Dajjal (Antichrist) and that, He shall stay on earth for forty days, the first day (shall be) like a year, the second day (shall be) like a month, the third day (shall be) like a week, and the rest of the days (shall be) like our days. The companions asked him, “O Messenger of Allāh, that day which is like a year (in length), would it be sufficient if we only offered (during it) the prayers of a single day?” The Prophet said, “No, [but rather] estimate the times [for prayer]” [Ṣahīh Muslim]

In this there is the clearest proof and praise, that there is nothing in the Qur'ān and Sunnah which is not clear and does not have an answer.  It is the lack of understanding that leads to the inability to know the answer, or the unwillingness of a person to seek (knowledge), nor ponder, nor review (knowledge); this is what keeps the matter unclear to him.

The khuṭbah had already started. She knew that she was late, but she wanted to attend the Jumu'ah prayer anyway. She quickly picked up her baby and stepped anxiously into the masjid, looking to the left and the right. After all, this was the first time she was here; she had just moved to the area and didn't know anybody. As she sat down in the Sister's Prayer Hall with the baby in her lap while her heart was thumping in her chest. She could feel curious eyes turn in her direction, but she stared hard at the ground, too nervous to meet their gaze and tried to concentrate on what the Imam was saying.

But her baby was nervous too. He didn't know this new place…all these new faces and all the curious eyes. He had never been in a masjid before. He wanted to go home. She knew her baby would be uncomfortable in the new setting, but she thought she could manage. She herself had not been very 'practicing' all her life, but now that she was a mother herself, she felt the importance of an Islamic upbringing. She was determined to teach her baby all about this religion right from the very beginning, but first she had to work on herself. She wanted to learn, she decided that the best place to start learning about Islam would be the masjid and this was her first visit to a masjid.

But the baby was getting restless and she could see that he had already started to whimper. Yet, she hoped she could console him long enough to last through the Prayer. However, much to her dismay, just as the Imam finished the khutbah and said, “Allaahu Akbar,” her baby started crying. At first it was low wail and a whine, but then he let it all out. And she was certainly not prepared for the ear-splitting howl that followed, or the hysterically loud sobbing that accompanied it. WAAWWW!!!

Oh my GOD! What a terrible noise he was making! What should I do?

She thought to herself, panicking. She didn't want to break her prayer. She tried to pick him up, but he was squirming too much. She realized that he was wailing loudly, but there was nothing much she could really do. “After all, he was a baby!” she said to herself. ”I am sure they all understand.”

She wished that the prayer would be over quickly so that she could console her baby. But before the Imam had hardly finished saying the 'Salaam', that they all jumped on her!

“WHY DON'T YOU KEEP THE BABY QUIET!”, they screamed! “DON'T YOU SEE WE ARE PRAYING?”

“Why did you come to the masjid?” Someone muttered, grinding her teeth.

“Stay Home, Next Time!” Another one hissed.

“Bb…But…umm…I…uh…I'm so sorry.” she whispered.

With her head bent low, her eyes downcast, she blinked hard to fight back the tears that suddenly welled up in her eye as she tried so hard to swallow the huge lump in her throat. She thought this was the masjid. This was the place where she and her baby would be welcomed; this was the place she wanted to be, to learn Islam and to teach it to her child.

How can they be so mean to her like that? Didn't they realize that it wasn't her fault that the baby started crying!

Without saying a single word more, she hurriedly gathered her things, picked up her baby and quickly left the masjid, without even looking back once.

Now let's go back to another scenario, 1400 years ago, in a better time, in a better place, in another masjid…by relating to this hadith:

A bedouin urinated in the mosque, and the people rushed to beat him. Allah's Apostle ordered them to leave him and pour a bucket or a tumbler (full) of water over the place where he has passed urine. The Prophet then said, “You have been sent to make things easy (for the people) and you have not been sent to make things difficult for them.” [Bukhaari]

This illustrates for us the perfect example of how our behavior should have been. It shows us an unwavering principle of Islam, that is, if in our social life, when any unpleasant incident takes place, we should keep our cool and show tolerance and patience. We should concentrate on finding a solution to the problem and not just think in terms of what punishment to hand out to the problem-maker. We should find means that would alleviate rather than aggravate the problem.

Where is our sense of tolerance and patience? Where is our feeling of compassion and mercy? When and where will we show it, if not in the masjid, of all the places? The Prophet (saw) said:

“He, who does not show mercy to others, will not be shown mercy.” [Bukhaari]

Did the sisters forget the time when they had little babies of their own and they cried too?

The Prophet (saw) understood the agony that a mother goes through at such times. That's why he (saw) said:

“When I enter the prayer I intend to prolong it. Then I hear the crying of a child, so I shorten it knowing the difficulty his mother will have with him crying.” [Bukhaari]

And aren't we supposed to warmly receive a newcomer, and make them feel wanted and welcomed…especially one who is just coming back to Islam? Isn't being kind and tolerable, the very basis of our deen…the very essence of our Da'wah?

As Allāh says to the Prophet (saw):

“By the grace of Allāh, you are gentle towards the people; if you had been stern and ill-tempered, they would have dispersed from round about you” [159 Al-'Imraan]

Aren't we supposed to behave courteously towards one another? Didn't the Prophet (saw) tell us:

“He is a bad person in the sight of Allāh who does not behave courteously and people shun his company because of his bad manners.” [Bukhaari]

SubhanAllah!

Was this the way to behave with the new sister?

Why weren't we gentle and merciful to her?

Why couldn't we be patient with her and her little baby?

Couldn't we have dealt with the situation better?

Were we a means of pushing her away from coming to the masjid?

These are some of the questions that we seriously need to ask ourselves.

Revive the true spirit of Islam through the 3 P's

PRACTICING – PRODUCTIVE – PROSPEROUS

At the time when Muslim achievement is in a relapse, there is a need for change of Muslim attitudes. The prophetic teachings demonstrate Islam as a way of life. The discharging of religious obligations should increase your productivity in all aspects of life. Being practicing and productive are the two key ingredients to prosperity in the courtyard of Allāh , The Most High. The predominant factor, which dictates the essence of achieving these three P's, is a sound heart that is home to pure intentions. The acquisition of a pure heart is a gift from Allāh , which will enable a person to maintain a balance in all walks of his life.

Islam is a living dimension encompassing the affairs related to all aspects of life, importantly: theology, worship, financial dealings, social etiquette, and purification of the heart. This automatically removes the implication normally associated with religion; that it is restricted to rituals, days and certain seasons of the year. It is clear that Islam is neither time-restricted nor bound to a place of worship; rather it is a complete system that deals with anything you will encounter in your life from the moment you enter until the time you depart from this world. The present situation invites Muslims to be religiously practicing and productive so as to become prosperous. This is especially relevant to the pursuit of further education where it is commonly thought that these elements are distinct; rather they are intertwined.

As Islam is a complete way of life, it has to be understood that the time spent at University is very much a part of your Islam and worship, as long as is it is undertaken with the right and good intention – seeking the pleasure of Allāh . The transition from college to university can be a daunting experience. The concept of individual learning, the requirement to adjust to new teaching methodologies and a greater sense of independent study can leave you feeling lost. Student life is filled with new prospects and opportunities; more often then not the question arises, 'How do I fulfill all my aspirations and ambitions whilst acquiring prophetic excellence in all my pursuits?'

To overcome the hurdles that you face in order to see the light of success, and to achieve your aims you must have to maintain equilibrium in all aspects of your life to seek the pleasure of Allāh as Islam is a religion of moderation.

Allāh says in Qurʾān:

“…Thus have We made of you an Ummah (Nation/Community) justly balanced That ye might be witnesses over the nations and the Messenger a witness over yourselves…” [143 Al-Baqarah]

Here is some advice for achieving the 3 P's: 

1. Become Practicing – Enrich yourself with knowledge:

Aim to study Islam & your degree to a very high standard and to convert all the information you obtain into knowledge. Knowledge is the culmination of acting upon and utilizing the information that has been obtained regardless of whether it has been imparted through a teacher, books or any other means.

You must have a hybrid education of Islam and your degree as this will permit you to become a practicing Muslim without transgressing any limits set by Allāh , in your affairs. If you are aware that you are a Muslim student, then you will easily know how to use your intention to make the best use of your degree in the Islamic way of life.  You will no longer have to draw a distinction between your Islamic and secular life as they will become harmonized. Islamic sciences should be studied alongside your degree to know how to correctly discharge your obligations. Also, you should seek advice and knowledge from the knowledgeable pertaining to your field of study or Islam, for that too is an Islamic way.

Allāh , The Most High says:

“Say, 'Can those who know and those who do not know become equal?' It is only the people of understanding who are receptive of the advice.” [9 Al-Zumar]

Practicing upon what you learn is essential, otherwise the information delivered to you will not be evolved into knowledge but remain as information which could be of no use. Knowledge can only be that information on which you act and that leads you to the guidance.

Everyday, we seek the guidance from  Allāh , reciting Surah Fatihah in our 5 time prayers:

“You alone do we worship, and from You alone do we seek help. Take us on the straight path.” [5, 6 Al-Fātiḥah]

 Action Point: Enroll into a part-time Islamic course online or in your local area. Aim to read and listen to authentic books and lectures discussing the lives of famous Islamic historical figures. This will inspire you to follow in the footsteps of the great personalities that have enriched Muslim heritage.

2. Become productive – The change starts with you:

The times of the Messenger , the Companions (Allāh be pleased with them) and the early generations of Muslims was the most successful and productive in the history of Islam. Muslims made new discoveries, invented new machinery and were coveted by other communities. But the present condition of the Muslim Ummah is in sharp contrast to this and predominantly lacks productivity although Muslims are more in number.

The next duty is to appreciate the value of time by avoiding procrastination and laziness, if you want to be productive.

You must plan your day, make targets and be consistent. As a Muslim student, you must strive to excel in all that you do. Excellence is achieved through being consistent in action. The Messenger said:

“The most beloved deeds to Allāh are those that are done consistently, even if they are few.” [Bukhari]

To become productive, you must ensure that you maintain a routine whereby you set yourself a time and a place for everything. Do not sign up to so much that you cannot cope, conversely,  do not restrict yourself to so little that you are not  utilizing the spare time that you have, but try to optimize your capability and resources.

A few tips to cut on your waste of time are : avoid spending excessive time indistinctly surfing the internet, text messaging, and unnecessary engagement with gadgets; these will prevent you from becoming productive by keeping your mind engaged in them even when you are not really doing it. The heroes of the past knew the importance of a sound heart and how to keep it pure. Allāh says in Qurʾān:

“Success is really attained by he who purifies it [i.e. – the soul], and failure is really suffered by he who corrupts it.” [9, 10 Al-Shams]

With a pure heart, your love, trust, patience, and gratitude in Allāh will increase, and He will Help you in becoming more practicing – productive – prosperous. Not only it will benefit you, but also encourage others to traverse the same, and this will become the “ERA OF REVIVAL” starting with you!

 Action Point: Draft a routine and commit to it. Make long and short-term targets to achieve your objectives and be consistent in meeting your personal goals. Always supplicate to Allāh , especially after the obligatory prayers, that He blesses you with a sound heart and for Him to remove anything that will lead to its corruption.

 3. Become prosperous – Be a beacon of light:

Seeking knowledge is an endless endeavour, as the saying goes, 'the pursuit of knowledge is from the cradle to the grave'. Likewise, self-rectification and purifying the soul is a lifelong struggle. Prosperity in this world is becoming practising and productive, using every moment in your day to draw closer to Allāh . Prosperity in the hereafter is to be blessed with the countenance of Allāh and His everlasting pleasure.

Action Point: You must exert yourself to achieve the prosperity of both worlds to become a beloved servant of Allāh . When Allāh loves you, the people of the world embrace you and you have the opportunity to become a beacon of light in your community.

The Messenger said:

“When Allah loves a slave, He calls Jibra'il (Gabriel) and says, `I love so-and-so; so love him.' And then Jibra'il loves him. Then he (Jibra'il) announces in the heavens saying: Allah loves so-and-so; so love him; then the inhabitants of the heavens (the angels) also love him; and then people on earth love him.”  [Bukhari and Muslim]

The title of a recent blog post that drew over 100 comments on MuslimMatters read “Halal Mortgages: Alleged Misuse of Taqi Usmani's Fatwa and 3 Important Questions.”  What began as perhaps a sincere attempt by the author to alert readers about the abuse of a respected scholar's fatwa and invite Islamic financial institutions to provide as he put it “a little bit of transparency”, resulted in a heated online debate that achieved very little in terms of “removing doubts” about Islamic home finance companies in the US, as originally intended.

Because Guidance Financial Group and its subsidiary, Guidance Residential were mentioned in both the blog and the comments that followed, we felt that a response was appropriate to counter some of the misinformation that has been spread not only about our company, but also the chairman of our Sharia Supervisory Board and the six fatawa he and the other prominent members of our board issued specifically for our Declining Balance Co-Ownership Program. Guidance has helped thousands of Muslim-American families become homeowners through this authenticated program and since our inception in 2002, we have always believed in the value of transparency having issued a comprehensive WhitePaper that provides insight on our unique and pioneering structure.

It is important to start off by clarifying one major matter that could go unnoticed by the reader. It is that the blog begins by quoting Mufti Muhammad Taqi Usmani as saying “I have never approved any ijarah contract or scheme for any financial institution in America, Australia or Canada.” We would like to emphasize that this statement is in no way, shape or form directed at Guidance or its Program. It is unfortunate that the author mistakenly refers to the ijarah model as a “co-ownership” while in reality Guidance does NOT and has never used the ijarah (lease) structure or contract. Guidance's Program is based on a musharakah mutanaqisa (diminishing partnership) structure, which was developed with the help of and finally approved by our Sharia Supervisory Board led by none other than Mufti Taqi Usmani as its Chairman.

The underlying question that needs to be asked is how can Muslims determine if a financial contract or institution is in compliance with Islamic financial transaction principles? For starters, we would need to know who are the scholars behind the product or institution.  To develop our Program, we spent millions of dollars in research and development over the course of 3 years and involved 18 different law firms while working with 7 of today's most authoritative and highly respected scholars in Islamic finance. The scholars are from 6 different nations and are trained in the different schools of thought. Throughout the development process and beyond, these ulema researched and debated all aspects of Guidance's Program, including the life cycle of the transaction and how it would involve an actual home-buyer.  Eventually, ijma (consensus) was achieved among these renowned scholars and a formal certification through the issuance of fatawa was complete.

To further validate our approach and our Program, one can evaluate the scholars themselves to assure that they are qualified in matters relating to Islamic financial transaction principles. In doing so, you will find that a majority of Guidance's Sharia board members belong to the prominent Sharia board of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI, pronounced “a-yo-fee”), formed in 1990 as an independent, non-profit, international standard-setting body, AAOIFI is the industry standard for Islamic finance practitioners. AAOIFI's regularly updated texts have become the definitive reference work for those seeking a comprehensive rule book about internationally recognized standards in Islamic finance. Its 85 standards cover everything from accounting and auditing to governance and product-specific Sharia standards. The 20 international scholars who sit on AAOIFI's Sharia board are distinguished Islamic scholars who are legally qualified to issue a fatwa and adjudicate on matters of Islamic finance. Guidance is privileged to count among the members of our Sharia board a quarter of AAOIFI's most eminent and authoritative scholars in Islamic finance. In fact, the Chairman of AAOIFI's Sharia board is none other than Mufti Taqi Usmani.

Guidance and its distinguished Sharia board have been sought after for technical expertise in Islamic finance by international organizations in Saudi Arabia, Malaysia, Egypt and Indonesia. In 2007, Guidance helped establish what has become today's leading home finance institution in SaudiArabia – DarAlTamleek. In 2009, Guidance was nominated by the Dubai-based international trade publication Islamic Business and Finance Magazine for the “Best Islamic Home Finance Provider” award. All these efforts did not go unnoticed by the mainstream media and in fact, major outlets like The Wall Street Journal, The New York Times, The Washington Post and even Al Jazeera to name just a few have all recognized Guidance's pioneering endeavors. We hope that more Muslim media outlets delve in to this subject in greater detail for the benefit of our community as a whole.

We would like to extend an open invitation to all of the Muslim Matters staff and its bloggers to talk with us directly and even visit with us at our corporate headquarters in Reston, Virginia. Furthermore, please feel free to communicate directly with me, Hussam Qutub, and ask any and all questions by emailing me at communications@guidanceresidential.com.

In addition to relaying all of the above, Guidance's intention in writing this post was also to answer the questions posed by the author of the article. To that end, we have provided our answers below.

MMQ1:         How often are updated contracts reviewed and approved by a Shari'ah board (“SSB”), and which scholars have signed off on the actual contract being used by an Islamic finance company?

 A1:          Our full Sharia board has signed off on our program as you can see from the link above.  Our Declining Balance Co-Ownership Program documents have not changed from the time reviewed by the scholars. Subsequent to those fatawa, in 2005 and 2006, two additional fatawa were issued to certify adjustments that needed to be made in order for us to serve Texas Muslims while adhering to their state's unique challenges and the second to introduce adjustable programs that were in high demand at the time.

While there have been lots of changes in the mortgage business since the credit crisis in terms of licensing and disclosures, these changes have not impacted our contract or the documents reviewed by our Sharia board. As an FYI, our agreement with our investor, Freddie Mac, does not involve a lending and borrowing relationship of any kind.  And although they have made significant underwriting and operational changes, their documents also have not changed since we started the Program. Part of the reason our contract has stayed intact is that we have a unique and exclusive contract with Freddie Mac. No banks or financial institution can use our agreement without our permission. Additionally, banks in general cannot use our contract by law because banks cannot co-own, they can only lend.

MMQ2:         Are all practices done by the Islamic finance institution during the course of the contract and “declining co-ownership” Shari'ah approved?

 A2:          Yes and we continue to be compliant in all aspects of our business and we are not aware of any aspect that is not compliant.  The entire course of the contract from purchase, transfer and full ownership by client has been studied, observed and deemed compliant with Sharia principles. It is important to note that many disclosures are federally mandated requiring us to use them even though their terminology mischaracterizes the nature of our Program.  For this challenge, we have a fatwa on disclosures that can also be found in the link above.

To further address the authors comments for this question:

“The company itself tried to say that they simply transferred the administrative duties of collecting payment. However, the paperwork from the other bank indicated clearly the transferring of the debt (i.e. selling the debt) from the Islamic company to the bank.”

 Recently, to enhance our customers' overall experience we transferred the servicing of our contracts to a new vendor, namely US Bank's servicing division. To better understand this transfer one would need to understand “servicing” and its place in the mortgage industry. In simple terms, it means collecting and administering monthly payments, mailing monthly statements, fielding questions and handling late payments. For a company of the size of Guidance, this administrative task is usually contracted out to vendors that will then act on behalf of a home financing company and become an extension of their operation. In our situation, although the vendor handles all our correspondence with existing customers, everything is done in our company's name and all payments made by our customers are made to Guidance.

The process of transferring from one servicer to another is a complicated and often challenging administrative process.  There are federally mandated letters that must be sent out to all customers by the old and new servicer on behalf of the home financing company. During our transfer period, some of this mandated correspondence was sent out on our behalf with language that did not properly characterize our Program. Unfortunately, this caused some concern among our customers and we have since worked diligently to address and clarify the situation.  At the end, we admit that this could have been handled better but it must be said that this in no way changes the contract or compromises our program. If it is unclear or requires any further clarification, please contact us.

MMQ3:         How are inconsistencies between what Mufti Taqi Usmani advocates in his writings and the actual schemes used by these banks to be addressed?

 A3:          First, we recommend that all Islamic financial institutions establish an independent Sharia board consisting of specialized, distinguished and credible scholars that regulate their specific products and services in the context of laws in the land they wish to operate as Guidance has done. Second, consumers need to do their due diligence in understanding not only who the scholars are but also how the program is designed to work.

If one were to investigate further in Mufti Usmani's writing and our White Paper, which was approved by our board, Guidance's Declining Balance Co-ownership Program is designed to create a co-ownership for the purpose of providing the home-buyer with financing to acquire a home. This co-ownership is based on Shirkat ul Milk. It is not designed as a commercial partnership (Shirkat ul Aqd) for the purpose of making profit from trading in real estate. Consequently, the Program is intended for the customer to fully buy out Guidance's share in the property over time, and not for the two co-owners to sell the property jointly and share the gains.

The White Paper further stipulates that should the home buyer sell earlier than the term agreed upon, the appreciation that the property will have likely earned is theirs to keep since they did all the leg work to identify the community and property. If the property sells for a loss then the shortfall is something they must consider. However, if the property depreciated so much that the shortfall is below what is considered Guidance's share in the property, Guidance incorporates a unique “non-recourse” clause that protects the seller in this case from owing the full amount to Guidance. We would consider the difference a loss on our books.

Furthermore, if the government were to impose on the co-owners to sell the property in order to make room for a road, a park or another public project the Co-ownership Agreement specifically stipulates that the two co-owners would share the gains or losses from such a forced sale according to their ownership shares. As a result, Guidance may end up with proceeds that fall short of the amount of financing it had provided, in contrast with what would be owed under a conventional mortgage loan.

The principle that the two co-owners should share in the gains and losses of their respective shares in the property applies to situations other than a sale. Consider the example of a property that suffers total destruction and cannot be repaired using available insurance proceeds. In this case again, the Co-ownership Agreement stipulates that the two co-owners would share the insurance proceeds according to their ownership shares, resulting in an outcome quite different from that of a loan.

All of the above items and questions were addressed and documented in the fatawa and white papers that were certified and amended by our board in 2002, 2005 and 2006. We can always try to facilitate a direct discussion for an extensive and more thorough analysis between your staff and our Sharia board. Our only request is for due diligence and open communication.

For as long as I can remember, I've loved reading inspirational quotes. Quotes are particularly appealing because they're often expressions of universal truths and lifetimes of wisdom delivered in memorable packages of concise, thought-provoking statements. And more recently, in the realm of social media, quotes have become a way of expressing our feelings through the ornate speech of a credible figure. And the only thing better than quotes, are quotes that remind you of Allah [SWT] and increase your eman.

Enter GreatMuslimQuotes.com, an online resource for immersing yourself in the timeless wisdom of our pious predecessors. The site features an increasingly massive collection of quotes from a wide range of well-known (and lesser-known) scholars and worshipers on practically any topic you can think of. In addition to being a great place to find inspiration, I've found the website to be an excellent resource for preparing khutbahs or halaqas; nothing like having a memorable statement from Abu Bakr [ra] or al-Hasan al-Basri [rah] to drive your point home.

The team behind the project amasses quotes from both English and Arabic books complete with references to where they read the quote, as well as to the original sources when available. English-speaking audiences will especially find Great Muslim Quotes valuable because while there have been books in Arabic with Islamic quotes, such resources have been greatly lacking in English until now. And although other websites may have a page with Islamic quotes, no other resource is nearly as large, organized and dedicated as Great Muslim Quotes. Furthermore, the weekly updates make the website a fresh stream of continuous inspiration.

The website has a clean design, and user-friendly functionality. In addition to browsing quotes by most recent updates, readers have the ability to search the vast collection by topic, author and keyword. The integrated social media tools allow you to easily share quotes and inspire your friends with the click of a button. The best part is that the website is completely free with no registration or email address required to benefit; simply go to the website, and get inspired!

Whether you're looking to understand a particular topic, enliven your khutbah, or simply seeking inspiration (or want to facebook/tweet something meaningful), look no further than GreatMuslimQuotes.com for enlightening pearls of wisdom collected from the rich Islamic tradition.

by Yahya Whitmer, co-edited by Shaykh Yasir Qadhi

In the introduction to this series I explained why I am committed to developing a dialogue around the topic of Tawhid of worship. No matter what terms I use or what phrases I come up with, they are all massive understatements in regards to the importance of this issue. Only the words of the Creator Himself can do this topic justice and He has said, “I have not created the jinn and mankind except to worship Me” (51:56). Tawhid is quite simply the meaning of life and it is tragically unfortunate that there are grave misconceptions regarding it within the Islamic Ummah.

I will list some of those misconceptions here. All of these fatawa come from one website though not one person. Different Shuyukh gave their opinions and justifications regarding this issue. Thankfully, their opinions do not represent the entire body of Sufism and certainly do not represent the majority of the Ummah (despite their claims to the contrary). I assume, since they are all coming from one website, that they do represent a particular school of Sufi thought, but I decline to put an exact label on that school, for fear of painting too broad a stroke. But have no doubt, this is not a fringe group. The people who directly support the concept of making invocation to created beings are major figures in the modern Western Sufi scene and it is safe to say that thousands of Muslims are influenced by them. I would not have bothered with addressing their opinions were this not the case. As I mentioned in the introduction, I will not mention names in the hopes that the dialogue can remain focused on discussing the opinions, evidences, and implications, and not be hijacked by any emotional attachments for the people involved.  I will quote directly where possible, but at the end I will summarize their collective opinion for the sake of clarity and comprehension.

Prayer to the Creation

To put it succinctly, this brand of Sufism allows for direct invocation of created beings. Several similar questions were posted on their website, sometimes expressing concern and discomfort in regards to this practice:

• “I see on some internet forums, people writing such things as “Ya Ali I invoke thee” – I wanted to know is it allowed to say such things? Does this not smack of shirk?”  The Shaykh responds, “This is pure affirmation of Divine O neness. How can it smack of shirk?” In his response he mentions several viewpoints to justify his opinion. We will address those justifications soon.

• Another person asks, “Is it permitted to call someone other than Allah for help? Is this not bordering on shirk?”  And another scholar replies, “there is nothing wrong in using the Prophets, saints and the righteous as intermediaries to Allah, through any of the above mentioned means, as long as one does not believe them to have the power to benefit or harm in of themselves without the granting of Allah.”

• A person seeks validation: “I have a sheikh M******* who has passed away now. Whenever I am in need of help I ask for his help and  my work is done and I know this is through Allah but many people question me that how can this happen he was a human you are doing bidat ask straight from Allah these people do not believe in sheikhs. Could you please tell me how this help arrives?”  The official response: “There is general agreement of Sunni scholarship that tawassul (intercession; seeking a means) of the righteous is permitted, in their life and death”

He sat across the table gazing at me. His mouth opened as if he meant to utter something, but he held back. Then he finally decided that his wonderment could no longer hold him back. He said, “I am sorry but I have to ask, how do you manage to wear that in public so nonchalantly?”

Ah, yes, the Hijab; a conversation that many of my hijabi Muslim sisters know very well and most likely discuss regularly.

It's not that he wasn't familiar with the hijab. He, in fact, was a Muslim himself, but his amazement spanned from the fact that, as he put it, “You seem unfazed by the criticism and negativity about it.”

I leaned back, smiled and replied, “Because I knew the responsibility that would come along with wearing the hijab.”

He was puzzled, so I elaborated:

You see I understood that wearing hijab was going to be a great responsibility, especially living in the West. I always knew that I would eventually wear it at some point in my life, because I do believe it is mandatory, but that was not the only thing I thought about. I remember standing in front of the mirror and trying on the hijab for the first time. I didn't think about how it looked on me or how it altered my appearance. The only thing that ran through my head was the following verse:

“And fulfill the Covenant of Allāh when you have entered into it, and break not the oaths after you have confirmed them, and indeed you have appointed Allah your surety. Verily! Allah knows what you do. And be not like her who undoes the thread which she has spun after it has become strong, by taking your oaths a means of deception among yourselves…” [An-Nahl 91, 92]

 This was an oath I decided to take with Allāh: I will represent Islam to the best of my abilities. I will not be offensive or aggressive in my ways of communicating the true meaning of our beautiful and just religion. My outward appearances and practices will be one and the same as my inward intentions.

Wearing hijab, especially in the West and post-9/11, is not an easy task for us Muslim women because, unlike our male counterpart, the hijab makes us an outward symbol of Islam. It no longer means that Islam is just between you and Allāh. It also means that now you are a walking da'wah. Your actions, thoughts, and even silence are linked to Islam. It is a great responsibility, and on that note, we should not be too sensitive to the reaction of others, simply because they fear it or pity it out of ignorance.

Rather, one should educate oneself and be sound in the decision of donning it. Don't take it as a burden but an honor that Allāh has bestowed upon you to be an outward symbol. But also take care of knowing the responsibilities that come with this honor. The hijabi woman is easily associated with knowing and answering questions about Islam, so our duty becomes two-fold: to preserve our modesty and educate ourselves in order to represent Islam correctly.

So, just like the Prophet took on the great responsibility of fulfilling his covenant with Allāh to deliver the beautiful message of Islam, I, too, take on that responsibility when I wear the hijab.

He sat back; his wonderment turned into admiration. He had no words, just a nod of understanding.

A Twitter trend that surpassed its intended purpose – and backfired a little – thanks to the English Defence League's (EDL) Tommy Robinson.

April 15, 2012, just another day in Tommy Robinson's growingly Islamicised Britain. Well, it was meant to be just another day, until the master intellectual, visionary strategist – and leader of the EDL – spotted a window of opportunity to whip up further anti-Muslim sentiments.  That night he logged into Twitter on his computer and, to his absolute consternation, observed that the homepage featured an image of a mosque.

The national hero and beacon of British liberal society that he is, he immediately tweeted, “Welcome to the Twitter homepage has a picture of a mosque, what a joke #creepingsharia”. Having an image of a supposed mosque featured on the Twitter homepage was evidence enough for this intelligent, patriotic young man, that Sharia law was indeed slowly, but surely, permeating into the mainstream. Very soon, every woman in Britain will be required by law to dress in a burka out of modesty, akin to the many EDL members who proudly cover their faces during protests.

Of course, this is someone who also tweeted, “I support Israel, so what! In fact I would go one further! I would fight to defend Israel the shining beacon in the middle east! #defendit”. Some Shining Beacon that.

This 'mosque' that Robinson was tweeting about, it later transpires, was this building which we have all seen and heard of. Of course, I will never compare my uncle with the epitome of supreme IQ that is Robinson, but the last time my uncle checked, it was not a mosque, and probably never had been in the 500 years or so of its existence. To my credit, the assumption that it may be about five centuries old was made by me, not my uncle.

After recently attending the Pure Paisa: Fiqh of Money & Transactions seminar at Qabeelat Durbah, I imparted some ideas about minimizing/eliminating interest in financing one's education with the volunteers.  Alḥamdulillāh, some people found it to be beneficial, so I am sharing it here on MuslimMatters, where I hope it will benefit others and serve as an impetus for further discussion.

Getting an interest-free education has always been and continues to be challenging, especially in light of increasing tuition costs.  I just wanted to take a moment to share some of my thoughts that may help you (or your friends/children) get a quality education without compromising your values. And even if one feels interest is a necessity in getting an education, one can still make an effort to minimize it along with the overall costs of education.

My thoughts come from knowing a few people who have completed undergraduate studies and medical/dental school without dealing with interest, walhamdulillah.

I should also point out that I'm unable to provide a one-stop surefire solution (because currently there is none as far as I know), but rather just a few meager thoughts that might help.  And by no means is anything guaranteed or easy; to the contrary I think being able to finance graduate studies without interest is the rare exception (and an immense blessing), rather than the rule.  Undergraduate studies may be easier due to lower costs and greater availability of scholarships and financial aid.

PREPARE THE SOIL & PLANT THE SEEDS

Intention

Intention is emphasized in everything we do, and pursuing an education is no different.  If one is absolutely committed to staying interest-free, then I think it's paramount for the person to make an intention along the lines of: “If I can't get this education interest-free, then I will delay it/won't do it.”  I believe such an intention (if serious & sincere; not just lip service) will bring Divine Help for the person.

Du'ā'

Ask the only One Who Can Help You; the only One Who is Capable of all things; the only One Who Knows what is best for you.

Integrity

With Allāh: A person may say “I want to enter such and such a profession so that I can earn money, and give it in charity to help others.”  Put your money where your mouth is from the get go.  If you are not charitable now (however little it may be), then how can you be entrusted to give in the future?

With People:  People aren't looking to lend money, especially large sums, to people who aren't reliable: reliable enough to pay them back, as well as reliable enough to successfully complete their education and obtain quality employment.

Excel in School

Since many scholarships are based wholly or partially upon academic merit, if you don't have the grades, then you may be severely limiting potential sources of funding.  If you plan ahead, then you'll appreciate the need to excel academically as early as high school and can hopefully lock in scholarships for your entire undergraduate education.  If you're already in college and haven't received any scholarships thus far, then you can still do well now and apply for scholarships going forward since many scholarships are offered on a per-semester basis.

Community Service & Extracurricular Activities

In addition to academic performance, many scholarships take your contributions outside the classroom into consideration.  Some organizations you can volunteer with offer their own scholarships. Furthermore, a friend or member of the community is more apt to help out someone who is a contributor to society.

Be Realistic

Realize that staying interest-free isn't going to be easy and you may have to sacrifice some things.  For example, living in an apartment at an expensive out-of-state school might not be the most reasonable expectation (see “Living at Home” below)

START FARMING

Interest-Free Loans

Family & Friends: This is going to be a key (I'm inclined to say necessary) resource.  Hopefully someone you know has been blessed with surplus wealth, and is willing to help you out.  Ideally, you know someone who has wealth and holds the same beliefs as you.  The limitation is that many practicing people think that interest for educational loans is not a problem.  To find someone willing to help you avoid interest for school will be like finding a needle in a haystack.  Don't lose hope completely because the opportunity arises when someone who may not have an issue with interest personally, but respects you as a person and is willing to help you so that you don't have to compromise your values.  Or you might have someone who is involved with interest, but is regretful about it, and they may see it as an opportunity to attain the Mercy of Allāh 

(“I have my shortcomings & regret them, so perhaps if I protect someone from interest, then hopefully Allāh will Protect me”).

For example, I know someone who was able to borrow $50,000 and another person was able to borrow $60,000 over the course of 4 years.

Organizations: There are a couple of charitable organizations that provide interest-free loans for undergraduate & graduates studies.  You can search for them on the internet, and apply.  Using this technique, someone I know received $50,000 over 4 years.

Scholarships

There are several scholarships that come in all different shapes and sizes based on field of study, financial need, ethnicity, academic merit, extracurricular involvement, etc.  Most will require effort in terms of applications and essays, but remember that if you're serious about avoiding interest, you'll need to put in the effort.  The great thing about scholarships is that you don't need to pay them back.  I know someone who got about $45,000 over 4 years for graduate studies, and several others who had 60-100% of their undergraduate tuition covered.

How to find scholarships

1. There are numerous books and websites which you can look up
2. Ask your parents to find out if their employer offers scholarships because many companies do
3. Find out if your town/county/state offers scholarships for your field of study, academic merit, or volunteer work
4. Check with local organizations (ie. Rotary Clubs) for scholarships
5. And of course, check with your school for what scholarships they have that you may potentially qualify for.  If you're a double-major, check with both departments for scholarships that may be uniquely offered for each major

Mountains are made of pebbles

While a scholarship for $500 or $2,000 may not seem like a lot compared to the total tuition, realize that receiving a few of these can add up quickly.  Additionally, you will probably incur other expenses such a books, and equipment, so any amount of money you can get counts.

Buy used books (unless absolutely impossible).  Email your professor before the class begins and find out what books are required; then search for used copies on campus or on the internet.  Also find out if an older edition of the book will suffice.  There is no need to pay out the nose to have a brand-new copy of the latest edition from the school bookstore if you don't have to. Thus far, I think overall I've either broken even or made a profit on textbooks.

OTHER PRACTICAL TIPS

Live at Home

Attending an in-state public institution usually offers significant savings on tuition.  Combine that with a school that is within commuting distance (save on rent, utilities, food), and now you're talking major cost reductions.

Work During School

Depending on the difficulty and quantity of your coursework, a part-time job can be a very realistic option for many.  Sure it'll reduce the amount of time you can spend hanging out in the MSA lobby, but it'll be a worthwhile sacrifice.

Evaluate the importance of your undergraduate program

Especially if you're planning on pursuing graduate education.

For someone planning on attending medical school, my humble personal opinion is that going to a solid state school (ie. the equivalent of Rutgers in NJ) is an excellent choice.  I don't think going to a brand-name, private school adds much to your medical career because what is most important in the long-run is the quality of your residency and fellowship training (which depend upon your performance and activities in medical school) as well as other factors not related to where you received your undergraduate education.

Furthermore, getting into medical school isn't so much about where you went for college, as it is how well you did there.  There are plenty of people who went to an expensive college ($40-50k/year), but didn't do well enough to get into a US medical  school, so ended up going to an outside medical school (which is increasingly a major limiting factor for future career options).  And even if someone from an expensive undergraduate institution does stay in the US for medical school, chances are they will be in the same school as you, taking the same classes and tests.  So now it's a level playing field and your future opportunities depend on your performance in medical school. The only difference is that they already have pre-existing loans of $200,000.

I am not diminishing the prestige or intangible benefits of attending an elite undergraduate institution; I am simply offering a practical suggestion to minimize costs of education which I believe in general does not detract from your future success in the grand scheme of things for a career in medicine. 

Additionally, if you apply from high school, some state institutions have combined undergraduate-MD programs with local medical schools.

For those who may be pursuing a career in another field (ie. business), then it is possible that your undergraduate education may hold more weight because that will be your highest level of training when you apply for jobs (versus medicine where you have residency and fellowship beyond medical school, let alone undergrad).  Even within the business field, this may vary depending on the specific field (ie. finance, accounting).

I have a friend who went to a state undergraduate institution and now works in a highly sought after position for top-notch financial firm.  He told me that while he was able to “make it,” he had to put in much greater effort (working for practically free at times) to work his way up, in contrast to someone who came from a school with a better reputation in his field.

I have other friends who went to state schools for accounting and are now working for “big four” firms.  They said these firms have internships and a history of hiring graduates of these schools so they were confident they would do well.

Utilizing Subsidized Loans

A subsidized loan is one for which you are not charged interest while you are in school.

In most cases, it is highly unlikely that someone will be able to earn enough while attending school full-time to pay off a subsidized loan to avoid the interest (unless you borrow a small amounts and/or will be earning a high salary).

Strategy 1 Use the subsidized loan to give you & your interest-free lenders (ie. friend) some buffer time.  For example, if you start school in the year 2000, will graduate in 2004 and expect that it will take 5 years to be able to earn enough to pay back the loan (ie. by 2009):

A) You can borrow the $ from a friend in 2000 and have them wait until 2009 to get all of their money back.  In this case, your friend's money is locked up for 9 years (2000-2009)

B) You take a subsidized loan in 2000, then in 2004 you borrow money  from a friend to pay off the subsidized loan within 6 months of graduating.  Then you pay back the friend by 2009.  In this case, your friend's money is locked up for 5 years (2004-2009); this strategy reduces the time your friend's money is locked up.  The caveat is that you must be absolutely certain that you have a friend who will loan you the money when you graduate so you can pay off the subsidized loan; or else you will be unable to pay off the loan and will have to pay the interest.

Strategy 2 One brother mentioned that he went to school part-time and worked at the same time.  Therefore, although he took 1.5 years longer to finish school, he was able to: A) Earn and save up money while going to school   B) Delay his graduation so that he had more time until his subsidized loans became due.  So when he did graduate, he had enough money to pay off the subsidized loan and avoid interest.

Unfortunately beginning July 2012, the government is no longer offering the $8,500/year in subsidized loans to graduate students, but  I believe undergraduate will still be eligible. Confirm with FAFSA at the time you apply because policies are often changing.

Loan Repayment for Working on Under-served Areas

There are programs in medicine/dentistry/nursing where if you commit to doing primary care and working in under-served areas, the government will pay all or part of your loans. (http://www.hrsa.gov/loanscholarships/index.html). The downside is that you limit your career options (ie. primary care only), and you must work/live in a potentially undesirable location. However, if you want to do primary care and are regionally flexible, then this might be an option to consider.  I'd recommend talking to someone who has participated in these programs to get an idea of what it's like and what are the limitations, etc. There might be similar programs for other professionals (ie. lawyers) who commit to work in the public sector.

Job or Internship Tuition-Reimbursement

When considering potential job or internship opportunities, check if the company offers a tuition-reimbursement program.  Many companies will wholly or partially reimburse you for further education, often with the stipulation that you commit to work for them for a certain number of years.  I know a few people who have taken advantage of such programs for graduate business school. I also know two brothers who work for a college full-time (one in business, another as a police officer), and their graduate tuition (MPH, MBA) is free of charge. (Any full-time employee at this school is entitled to free education for their entire family; that is a pretty sweet deal!)

Take a Year “Off”, Save Up Money

“Off” doesn't mean sitting at home watching TV or perpetually vacationing; rather what I'm referring to is taking time away from full-time school so that you can work in a setting that will improve your financial situation while simultaneously maintaining or even enhancing your qualifications for your ultimate career plans.

The part in italics is important because in the future you will be asked about what you did in your time away from school.  You want to be able to provide an answer that demonstrates that the time away was an asset for you and your career.  Hence the reason why spending a year watching TV probably isn't a good idea (aside from the fact that you're probably not saving up any money watching TV).

If you're planning on a career in medicine, consider taking a year or two “off” in between undergrad and medical school so you can work and save up a decent chunk of change.  $30,000 in savings will give you a nice cushion to help pay for tuition or other expenses when your other sources of funding (ie. friends) fall short.  Don't worry about “getting too old,” especially if you haven't had any gaps in your education thus far.  When you start medical school you'll find that a good portion of people in your class are older than you because they're coming from another career, took time to do research or for personal reasons.  If you're planning for a career in business, many graduate programs might actually prefer that you have work experience before getting further education because you will be better prepared to appreciate the real-world applicability of what you learn in the classroom.  You can utilize this opportunity take advantage of tuition-reimbursement  programs your employer may offer.

This was just a brief outline of some of my thoughts; by no means was this intended to be a comprehensive guide to financing your education or choosing your career.  I hope that this article will encourage others to share their thoughts and experiences in the comments, so that we can learn different ideas from each other. You may have already known some of what was said, but I hope that hearing about people who have utilized these resources to earn significant sums in scholarships and interest-free loans, and go as far as completing medical school without paying interest will inspire you to put in the effort and seek out similar fruits (despite the tediousness of filling out application forms, writing essays, and the discomfort of having to ask people to borrow money).  Perhaps you can use this outline as a checklist to go through and see if you've exhausted all possible resources. And I recognize that with increasing tuition rates, avoiding interest for even basic education has become very challenging, and unfortunately there isn't any one, great solution that I'm aware of.  So we put forth our best effort, and leave the rest to the Mercy of Allāh, as He [SWT] is Aware of our individual needs and situations.

Disclaimer: Please consult a religious scholar, career counselor, and financial expert before considering any of the above ideas.  I am not liable in this world or in the Hereafter for any actions you do or do not take based upon the above thoughts.