According to a recent study, university students nowadays choose to invest their loan money in cryptocurrencies rather than in school.
It is important to note that the results were partly based on recent research from the Student Loan Report, which was conducted among 1,000 university students in the U.S. These students were questioned about using their money to purchase cryptocurrencies; about 212 students stated they’d invested their loan money in crypto.
This implies that about one student out of five at these universities would spend their student loan cash on cryptocurrency, hoping that its monetary value would increase and solve some of their financial problems in school.
However, the Student Loan Report later stated that the little cash that is gotten out of the portion of loan debt is channeled to pay for other expenses. According to its website, “Sometimes, student debtors borrow more than they end up needing for that semester of classes.”
The Student Loan Report also indicated:
Once the borrower’s college or university’s financial aid office uses the necessary financial aid to pay for courses, they send a refund check to the borrower.
According to a Pew survey, about 37% of millennials aged 18-29 are approximately seven thousand dollars in debt. Among student debtors with less than a bachelor’s degree who had unresolved debt, the median amount of debt owed was about $10,000. Students with a bachelor’s degree owed about $25,000, while postgraduate students owed approximately $45,000.
Cryptocurrency was the hottest investment of 2017, especially for young Americans, so it is easy to understand why many college borrowers would think it was a savvy way to spend their refund checks. Some might have even figured that they would be able to quickly pay off their student debt because not long ago every single virtual currency was experiencing seemingly unstoppable growth.
These reports come just as the American government is looking for adequate measures to reduce the risks linked to crypto investment.
Recently, the SEC stated its aim to curb ICO investment, making it clear that investments in cryptocurrency are risky due to their market “highs and lows”.
The regulatory body has also made efforts to stop crypto operators, and in some cases has filed charges against operators. Twitter, Facebook, and Googlehave also taken the bold step of banning crypto-related ads in order to protect people from the risks associated with investing in cryptocurrency.
That is a big move, but it may not hinder college students and young individuals due to the fact that these groups seek quick ways to acquire wealth and invest, regardless of the risks involved.
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