Assalamu Alaykum Shyookh.

I live in Norway where students at College can get student loans. The loan is interest free in the study period, and actually turns into a stipend (free money) at the end of the semester if all the exams get passed. If we fail the exams it is still an interest free loan that can be turned into a stipend if we pass the courses within one year. If we quit the study, or after graduation, or we no longer receive loan/stipend, and we have a debt left, only then interest will be added. I will complete a Bachelor's in the summer InshaAllah, and have not failed a course yet and find it unlikely to fail. And if I will fail, I have enough money to pay them back immediately. Is this loan that turns to a stipend Halal?

Assalamu Alaykom Wa Rahmatu Allah

AMJA has recently issued a fatwa regarding the status of higher education for Muslims in general and in the west in particular. The declaration considered it as necessity that would permit prohibited matters (as needed obviously). Thus, taking an interest-free loan for studying purposes is permissible, especially when it is most probably to be paid in full before it turns to an interest bearing loan for one reason or another.