Is it permissible for a student to continue his studies at a university that imposes a 1% late fee on tuition, knowing that all universities in the country follow the same system?

It is impermissible to increase the amount due in exchange for delaying payment. However, in the case of the American university, which does not adhere to the rulings of Sharia (definition), and for the Muslim student who needs to complete his studies, he should try to explain his circumstances to the university administration and express his refusal to pay interest (riba). If they refuse, he should strive to secure the amount, even through a benevolent loan (qard hasan (definition)), and reduce the outstanding amount if he is unable to pay it in full. He must be careful not to fall into this situation again in the future.