I wanted to ask regarding OSAP? Can we use that grant for hajj or umrah? Can we do a course for the purpose of only receiving the money?
Bismillahi Ta’ala
Walaikum Assalam Warahmatullah
The OSAP grant, serving as educational aid, is provided by the government as a gift (hiba) to students who meet specific requirements and/or conditions.
However, it is important to note that the OSAP grant has the potential to be converted into a loan, subject to repayment, potentially with interest. This conversion takes place if the qualifying prerequisites and/or conditions associated with the grant are not fulfilled before, during or after the study period.
Although they state it’s a grant (gift), but due to the possibility of it being converted into a loan later, it shouldn’t be classified as a gift (hiba) in fiqhi terms. Technically, it wouldn’t be permissible to demand the return of a gift (grant) if the money has been spent. This is articulated in the fiqh texts with the term (استهلاك الموهوب), which indicates that one of the impediments making it impermissible to take back a gift is the consumption of the gifted item.
However, the OSAP (Ontario Student Assistance Program) grant policy dictates that if the recipient fails to meet the conditions, the grant will be transformed into a loan, regardless of whether they spent it or not.
Therefore, I believe a better characterization for this transaction would be to classify it as a loan initially (قرض ابتداءً), and then a gift ultimately (هبةٌ انتهاءً).
Thus, it is the responsibility of the grant recipient to ensure they meet all the requirements to avoid the possibility of the grant being converted into a loan and incurring interest payments.
Once you receive the grant, you maintain full ownership of the money. The government doesn’t impose any restrictions on using it solely for education expenses.
If you, however, decide to disregard the program or course after obtaining the grant, then that grant will be converted into a loan, which may accrue interest and that will steer towards the unlawful. Due to this, one has to do their upmost to avoid getting their grant get converted into an interest bearing loan.
Despite the fact that you are meeting all the requirements necessary to receive the grant, the mechanism itself is valid and the use of that money for ibadah would be permissible in itself, but the “intent” here is not to benefit from the course/program in which you are enrolling. You are using the system just to acquire the grant for the purpose of ibadah, which renders this whole process unethical.
It is highly recommended to correct the intention and the primary intent should be to benefit from the course/program itself, not to obtain the grant for other purposes. If such an approach also results in additional funds that can provide fundings for umrah and hajj or other permissible endeavors, then it is a welcome outcome.
There is a wealth of skill-based courses that can provide broader benefits for you as an individual and the Muslim Ummah at large.
Wallahu A’lam
And Allah Ta’āla Knows Best
Maulana Israr Ahmed
Concurred: Mufti Faisal al-Mahmudi