Re: Zakat and Student Loans
true but zakaat can NOT be given to non-Muslims. parents can NOT be given zakaat money but siblings can be. there are guidelines where you can spend zakaat monies. best way is, as you mentioned, to give it to needy people you know. there are a lot of poor people in North America and that can be your own city.
our masjid gives out zakaat money to local families who are below poverty line. same goes with fitra money.