Can one loan money to a student for his college education on condition that the student maintains, for instance, a B average? (If the grade is not maintained, the benefactor would cease paying the bills.) Is that Ribbis? (Ostensibly, the benefactor is getting a benefit of the student’s success.) Thank you.
Answer:
This is fine.
The benefactor is not gaining something worth money in exchange for the loan, and it is reasonable to lend money on condition that the money will be well used in enabling the student to succeed in his studies.
Best wishes.
