The enthusiasm for crypto-currencies is incredible in the United States. Then we learned that 8 % of Americans had already invested in virtual currencies, today we discover that 20 % of students would have entered into a loan university for the sole purpose of buying Bitcoins. Back on this phenomenon particularly worrying.
A student loan
Each year, american students must pay between 15 000 and 50 000 dollars to pay their tuition fees. Costs which must be added the cost of accommodation, recreation, food… often, young Americans must, therefore, subscribe to a student loan to cover these expenses. However, in recent times, a new phenomenon has appeared.
Pixabay – The DigitalArtist / Use a student loan to invest is totally prohibited.
In fact, 20 % of students would have taken out a student loan for different purposes : the purchase of crypto-currencies. A survey conducted by Pollfish has revealed that out of 1,000 students surveyed in the month of march, 2018, 212 had used a portion of their student loan to buy virtual currencies. One of them explained : “young Americans are certainly the most enthusiastic vis-à-vis the crypto-currencies : they represent the most active investors and will seek to be involved in this ecosystem by all means. But, to be honest, I never expected really not what we can measure such a large percentage. The budget of a student is limited, and this money should be used for the rent, buy food or books. “
Use is totally prohibited
It should, however, know that it is forbidden to use the amount of university loans for anything other than to fund the studies, as noted by an american journalist : “The investment does not constitute an education spending ; it is, therefore, contrary to the contracts to use the money from his student loan to buy the digital assets. “
Pixabay – Leamsii31 / american students acquire university loans for investing in crypto-currencies.
Yet it is a practice that is becoming common. Elsewhere, a spokesman for the federal government explained that the university loans are normally only intended for the financing of the training of the students and that the investment is not considered an appropriate use.
The students, for their part, are attracted by the performance of the digital assets, but they do not measure the risks incurred, in particular linked to the volatility of crypto-currencies. An expert in student loans is out of the silence to warn the younger generation : “If you use a student loan to invest in digital assets and you lose this money, you will still need to repay your loan. And where will you find the money you need to pay your tuition fees ? “
Despite the warnings, the phenomenon is gaining momentum. Hope for these students that the price of crypto-currencies will go up quickly…
Source : Bitcoinist