As community leaders, we recognize our responsibility as part of the Ummah, a community guided by the Islamic principle of Iqra, which emphasizes reading, reciting, and the pursuit of knowledge and education. We’re also deeply concerned about the staggering costs of higher education and the difficult choice Muslim families face: taking interest-based (ribba) loans to fund education. To address this, we propose establishing an Educational Partnership Fund (EPF) with ACC, offering an alternative that aligns with Islamic values.

ACC alone cannot address the student debt crisis, nor can any single mosque, Islamic school, Muslim charity, or Islamic institution. However, together, we can make a difference. An EPF is a collaborative effort facilitated by ACC, where Islamic institutions like yours can create a fund to offer interest-free educational loans to your qualified Muslim students. ACC oversees the fund management, loan distribution, repayment processes, and provides annual reports. If every Islamic organization in the U.S. opens a EPF, we can significantly aid our students to pursue higher education, interest-free, while embodying the Islamic principle of unity and professional service.

1. Opening an EPF: To start, arrange a meeting with ACC to learn about the EPF, ask questions, and initiate the partnership. Following this meeting, ACC will draft a proposal for your board and stakeholders.
2. Initial Investment: To establish an EPF, a minimum of $25,000 is required.
3. Setup Fee: A one-time, 10% fee based on the initial $25,000 is charged by ACC to set up the EPF.
4. Fund Establishment: Upon signing the proposal and paying the initial amount, ACC establishes your fund.
5. Perpetuity: Once set up, the fund operates indefinitely.
6. How do Students Apply: Students apply for loans through ACC’s online application during the application cycle. Partners are given links to embed in their websites and share to create a seamless experience for their community.
7. Connecting Students to EPF: ACC provides partners with tools and training to educate their community about the EPF, application process, and selection criteria.
8. Fund Management by ACC: ACC manages all aspects of the EPF, including awarding loans, facilitating legal contracts, transferring funds, setting up repayment terms, managing repayments, and providing annual reports on loan distribution and recipient details. ACC also handles delinquencies.

This initiative not only helps students avoid riba but also fosters a sense of unity and communal support within the Muslim community.