THE body representing Muslim students at the city’s two universities has welcomed government plans to introduce sharia law-compliant student loans.

In April, the Government began a consultation on the possibility of introducing student loans specially targeted at Muslims who follow sharia – or Islamic law.

It came after concerns were raised about existing finance options from the Student Loans Company being unsuitable for Muslims, because sharia law forbids loans that involve paying interest.

Under new plans, a special advisory committee would oversee a funding pool, known as takaful, where Muslims who have been to university and moved into work help pay for those who are just starting their studies.

Money is withdrawn from the pool for new students, who later make another series of payments for a new generation.

On Friday, the Government announced it would begin working to push through the new sharia-compliant scheme after a consultation revealed 93% said there was a “clear demand for a sharia alternative”.

Bashir Osman, president of the Federation of Student Islamic Studies (Fosis), said: “The receipt of over 20,000 responses, compared with an average of 150 for the last three higher education consultations, is testament to the strength of need and demand for alternative finance.

“With 93% of respondents saying interest-based loans have indeed had an impact on students with religious objections, and another 93% saying there was a clear demand for a sharia alternative to the current interest-based loan system, we are pleased that such findings have resulted in the Government’s acceptance that there is clear demand for alternative student finance.”

Fosis speaks on behalf of the University of Brighton’s Muslim Society and the University of Sussex’s Islamic Society Ibrahim Ali, Fosis vice-president of student affairs, said the Government must now “prioritise the introduction of a legislative vehicle to implement an alternative finance model”.

He added: “We will work with our partners in the run up to the general election to secure commitments from the main political parties to introduce the requisite legislation early in the new parliament.”