FOMO, the fear of missing out, on the crazy gains that have been made in the crypto space has called some people to do some pretty crazy things. This includes students who are using money from their financial aid packages to buy cryptocurrencies.
Even more troublesome is that the students who are taking on the risks of crypto investing have student loan debt.
Let’s discuss the report that highlights this concerning phenomenon.
Throwing caution to the wind
When officials with The Student Loan Report set out to gauge the interest in crypto investing among college students, few may have thought the findings would turn out as they have.
Not only is there considerable interest, but it seems that a considerable number of students saddled with student loan debt are throwing caution to the wind in making choices that could put their financial futures at risk.
The survey was administered over the course of four days and the participants were asked the following:
“Have you ever used student loan money to invest in cryptocurrencies like Bitcoin?”
According to The Student Loan Report, a considerable number of college students who have student loan debt have used financial aid money to fund a cryptocurrency investment.
The Student Loan Report noted:
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.
They’re able to pull off the investment by using the funds that are earmarked for their living expenses. According to the student loan outfit:
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.
Clear and present danger
The students that are making the choice to use their aid money to buy cryptos are receiving strong warnings that this is not a good idea.
They risk being saddled with not only their loan debt, but also the losses that can come from the highly volatile crypto space.
Something that students may be ignoring, or perhaps don’t care