According to a joint survey between the Student Loan Report and PollFish, more than 20% of all university going students in the US are using their student loans to buy Bitcoin in one way or another.
Keep in mind that the main objective of Financial Aid is to assist students pay their tuition fees first. More often than not, there is reimbursement of extra cash whose intention is mostly to cover for living expenses. However, its quickly turning out that students have other ideas.
During a 4-day poll conducted on more than 1,000 students, pollsters sought to know if these students had used their refund checks to purchase cryptocurrencies. The US SEC considers cryptocurrencies and Bitcoin in general as volatile and risky meaning it’s not suitable for everyone.
Surprisingly, statistics shows that these students already know what Bitcoin and cryptocurrencies are. In the words of Drew Cloud, the founder of SLR, students are “enthusiastic investors”.
Drew Cloud remarked:
“Younger Americans are certainly the most enthusiastic about cryptocurrency; they are the most active investors and want to get involved in the space in any way possible. However, I truly thought the percentage would be lower.”
This spike in interest or zeal among student is understandable. Data shows that 2017 was a great year for cryptocurrencies in general. In fact a day couldn’t pass without news of small blockchain startups recording 10x growth days after launch.
Repayment of Student Loans is Mandatory
This illusion of unstoppable growth may be one of the reason why many students saw a way out from loans. Furthermore, they might have been cognizant of the hard repayment they face after graduation. After all, many thought that if investment in digital assets would guarantee prompt repayment, giving it a shot was worth it.
Even though they may have been right, American Financial reminds students that irrespective of their financial positions, they must eventually repay all their loans. This is regardless of whether their investment were profitable or not. Because of this eventuality, they advise students to always prioritize their expenses before thinking of wading into cryptocurrency investment.
Tom Knickerbocker, the VP of American Financial said:
“Using student loans for living expenses can offer valuable money management lessons, especially when the budget is tight and students need to figure out how to spend their financial aid wisely”