In 2015, credit management research center of renmin university of China surveyed nearly 50,000 college students from 252 universities across China and wrote a report on credit cognition of college students nationwide. According to the survey, 8.77 percent of college students will use loans to obtain funds when making up for the shortage of funds, with online loans accounting for almost half. As long as you are in school students, submit information on the Internet, through the audit, pay a certain fee, you can easily apply for credit loans. Student financial service has become one of the most rapidly developing P2P financial products in recent years. The college student consumer loan market is so hot, mainly because of the bank college student credit card halts, and college students have a strong consumer demand. Among them, college students are familiar with the loan is campus loan.
Campus loan, also known as campus network loan, refers to the loan business that some online loan platforms provide to college students. According to the investigation, the risk control measures of campus consumer loan platforms are quite different, and some platforms are at risk of student identity being used fraudulently. In addition, some platforms that provide students with cash loans are difficult to control the flow of loans, which may lead to excessive consumption of students who lack self-control. Some media compared the major campus consumer loan platforms and found that the amount of consumption ranged from 1,000 yuan to 15,000 yuan. Some platforms provide funds for club activities, with a maximum loan of 50,000 yuan. The page of a campus loan platform shows that 750,000 people have applied, and scrolls that a student from a certain school has applied for loans ranging from 1,000 yuan to 20,000 yuan.
In March 2016, xiao zheng, a college student in henan province, committed suicide by jumping off a building because he could not pay nearly one million yuan in arrears, which aroused strong doubts about the campus Internet loan. According to news on August 24, 2017, junior students at a university in wuhan owe 4,000 yuan in campus loans, which amounts to more than 500,000 yuan a year. On September 7, 2017, the Chinese business daily reported that the 21-year-old sophomore student in shaanxi province had borrowed more than 200,000 yuan to have dinner with his classmates and repay the loan. When he couldn’t repay the loan, he jumped into a river and committed suicide.
Although campus loan has the advantages of convenient application, simple procedure and rapid loan release, it also has the characteristics of lax information audit, high interest rate and high penalty, etc. Students may fall into the trap of “serial loan” under the ever-expanding consumer desire and fluke psychology, and it is urgent to strengthen supervision.
Currently, campus loans have the following harms:
1. Interest that is higher than the principal. At present, the annual borrowing rate of most products on online loan platforms is above 15%, so the so-called “low interest rate” is not credible. The 0.99% monthly interest rate is a marketing trick, and students are easy to be “cheated”.
2, The side of the students and their families:Some loan is very convenient, need id card only ok, some classmate hinder at the reason such as human relations, do loan for others with id card. This kind of behavior is risky, because once the other party fails to pay, the remaining debt is assumed by the “handled” person alone.
3, Once overdue, urge is “omni-directional”. In some cases, once the student loan is not returned, the online loan platform will not chase for the money through legitimate means, but adopt the means of mass texting to parents, relatives and friends, teachers, Posting posters on the campus, or even arranging door-to-door blocking and other threatening and intimidating means to press students for payment.
4, Easy to breed borrowing habits, some students love to compare, and bad habits, parents can not meet their needs. These students may turn to the campus loan sharks for money, causing gambling, drinking and other vices, or even skipping classes and dropping out of school because they can’t pay back the loans.
5, Easy to induce other crimes, lenders may use campus “usury” to cheat students mortgage, deposit, or use student information to engage in telephone fraud, cheat to get credit CARDS, etc.
How can modern college students avoid falling into the trap of high interest rate college loans? First of all, rational consumption, acting according to one’s ability, establish a correct view of consumption. Must not exceed oneself ability to bear limits and undertake high consumption. Secondly, learn some knowledge of preventing financial fraud and improve the awareness of preventing bad loans. Illegal lending institutions are a pair of invisible killing hands, if we have to loan the situation, remember to be careful to choose the loan service agencies. Finally, safeguard their legitimate interests, their rights to the appropriate protection.