The safest bet for student loan money is still college tuition itself. However, I truly thought the percentage would be lower. My latest book is «Wi However, according to The Boston Globe , some students are doing more with this borrowed money than using it for their college and living expenses. Sounds pretty clever right? It also leaves you with a future filled with all of these student bills that have unfortunately graduated with you. There is a new generation of consumers that tend to have no faith in traditional financial institutions, and I think they are approaching this asset with curiosity and excitement.
Nikita Blows Mar 23, If you thought that student loans were just for well, student expenses, then think. A recent survey has found that some college students are using their financial aid to invest in the crypto market. College is expensive and sometimes, opting for financial aid is the only way to cover fees, rent, textbooks and the list goes on. It also leaves you with a future filled with all of these student bills that have unfortunately graduated with you. However, according to Syudent Boston Globesome students are doing more with this borrowed money than using it for their college and living tl.
Stock market investors have been doing this for decades: Borrow money to buy stocks when prices are rising. Now some college students are adding a new twist to leveraged investing: Buy bitcoin and other cryptocurrencies with cash from student loans. Sounds pretty clever right? Let’s think this strategy through for a moment. You only make money using somebody else’s dime if the price of what you’re buying goes up.
Nikita Blows Mar 23, If you thought that student loans were just for well, student expenses, then think. A recent survey has found that some college students are using their financial aid to invest in the crypto market.
College is expensive and sometimes, opting for financial aid is the only way to cover fees, rent, textbooks and the list goes on. It also leaves you with a future filled with all of these student bills that have unfortunately graduated with you.
However, according to The Boston Globesome students are doing more with this borrowed money than using it for their college and living expenses.
Pollfish, an online polling platform, conducted a survey and according to The Student Loan Reportout of 1, students stated that they have used some of their student loan money to invest in crypto.
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 student loans used to buy bitcoin the percentage would be lower. As a college student, your budget is thin and that extra money could be used on rent, groceries, or books. While these students might be looking towards a future bright in digital currencies, the legality of using student loan money is uncertain.
Federal student aid funds are to be used only to help meet the costs of attending an eligible institution of higher education.
Investing is not considered an appropriate use of federal student aid funds. Adam S. Minsky, a Boston attorney specializing in all things student-loan related, also weighed in:. ICOs were also in the headlines throughout last year with start-ups raising millions of dollars in relatively short amounts of time. These price highs and ICO numbers could look quite tasty to students who are living on ramen and toast. However, price unpredictability means that there is no guarantee that these students will see a substantial return on their investment.
If you invest the student loans in cryptocurrency and lose money, you will still owe the student loans. And, where will you get the money to pay for college costs? However, Cloud added that because of this volatility, the pendulum could swing the other way and these students could gain huge returns:.
But there is always the chance that there is another period of explosive growth for virtual currency, and these borrowers will be laughing all the way to the bank. If this is the case, Kirkham believes that the students should be responsible with any profits left over after tax and interest deductions:. The survey did not specify how much of this borrowed money was being invested but Christian Catalini, an MIT professor who studies cryptocurrency, hopes that it was not a substantial amount:.
Even so, the fact that students, and non-studentsare even thinking about investing in cryptocurrencies show that the digital age is definitely upon us. Catalini added his thoughts:. There is a new generation of consumers that tend to have no faith in traditional financial institutions, and I think they are approaching this asset with curiosity and excitement.
What do you think about students using their financial aid money to invest in digital currencies? Let us know in the comments below! Could you be next big winner? I consent to my submitted data being collected and stored. But the project also seemed extremely generous to its developers.
Blockchains faced fierce competition inwith only a handful of altcoins remaining in good condition. Now, a new proposal has been made, a hypothetical merger of Dash and Bitcoin The MetaMask Ethereum wallet, one of the key entry points to crypto-based logins and distributed apps, has been suspended from the Google Apps Store. The reason cited was that MetaMask All Rights Reserved. We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.
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How to buy Bitcoin for Beginners
The rest will get burned. These price highs and ICO numbers could look quite tasty to students who are living on ramen and toast. ICOs were also in the student loans used to buy bitcoin throughout last year with start-ups raising millions of dollars in relatively short amounts of time. Stuvent bottom line is that only a handful of students will make money doing loan investing. Loading Disqus Comments I am an author, speaker and journalist specializing in investor and consumer protection. Catalini added his thoughts:. Minsky, a Boston attorney specializing in all things student-loan related, also weighed in:.
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