American Students Pile Financial Aid Money Into Cryptos – Survey

American Students Pile Financial Aid Money Into Cryptos – Survey

Earlier studies found out that 41% of male American millennials are likely to purchase bitcoin in the next five years.

But things are going more interesting with the young generation, and their craze over cyber money as another poll finds out that 20% of college students not only pile into cryptos but invest in them using financial aid money – studying loans in particular.

Tightening Belts? No, Not This Time

The survey was carried out among 1,000 present college students with loan duties in March by a site for student loan info – The Student Loan Report. It shows that over 20% of such students use the money, meant for covering tuition fees and other studying-related expenses, for investing in volatile coins.

Even though the poll does not indicate precisely how much these students piled into cryptos, but results are already surprising, said the constitutor of the site Drew Cloud.

He added that it is expected that students who earlier applied for financial aid would instead live with their belts tightened, e.g., spending the funds on accommodation, food, and university-related costs. But no, BTC and ETH come first for the younger generation.

Source: The Student Loan Report

To imagine the scale of the case, let’s look at how much of American federal loans student got. For instance, in accordance with the College Board, in 2016-2017 students pursuing a bachelor degree got about $4,600 in such loans.

Legal Questions

Mark Kantrowitz, a student loan specialist, said that if students pile the financial aid money, provided by the government, they violate the agreement with the gov’t. This money was given students for educational purposes and investment, apparently, is a different type of activity.

The representative of the American Department of Education reaffirmed this information, CNBC reported.

Another issue is that when investing, students will have to pay extra taxis for investment activity, so if bitcoin or any other cyber coin does not grow in price or even falls, the risk of becoming insolvent are very high.

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