Assalamualakum,

I have heard that it is allowed to pay riba but not take it in. Also, it is very difficult to live without interest in this country. What would you say about that?

I have been wondering about this for a while. As a student one has to pay loans all the time, with interest. Is there a punishment for this?

Jazakullahukhayr

Assalamualakum

Paying Riba and taking it from others are in the same level of prohibition according to many authentic narrations of the Prophet SAAW.
Yes it is hard to avoid Riba in this society, but it is not impossible.

Subsidized loan for students is allowed if the student is extremely in need for it, as well as if he is sure that the whole debt will be paid in full during the grace period. Unsubsidized loan is prohibited, because it is an interest- bearing loan from the beginning.

Dr.Main Al-Qudah
Islamic American University