According to a recent survey, conducted by The Student Loan Report, 21 percent of current college students with student loan debt have used financial aid money to invest in cryptocurrencies.
1,000 current college students who took part in the survey, were asked if they have ever used student loan money to invest in cryptocurrencies like Bitcoin.
The founder of The Student Loan Report Drew Cloud states, that “more than one-fifth of college students are dipping their toes, or maybe diving in head-first, in the virtual currency space, and they are using their student loans to do it.”
“Student loan borrowers would be able to pull off such a maneuver because they are given their remaining student loan funds to be used on “living expenses.” Sometimes, student debtors borrow more than they end up needing for that semester of classes. 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,” he explains.
Drew Cloud states that based on the fact that there is no system in place to ensure the debtor is using the leftover money for college living expenses, borrowers may spend that money as they want.
“Apparently for a sizeable number of students, the best use of that money is to invest in virtual currencies like Bitcoin, Ethereum, Ripple, and many others,” he concludes.
The survey was conducted by Pollfish on behalf of The Student Loan Report.