Tougher mea­sures needed to stop loan sharks ex­ploit­ing stu­dents

China Daily (Hong Kong) - - COMMENT - DE­SPITE LOANS ON CAM­PUS BE­ING PRO­HIB­ITED,

some on­line loan com­pa­nies are dis­guis­ing their loans to col­lege stu­dents as in­stall­ment re­pay­ment ser­vices for e-com­merce pur­chases. Bei­jing Youth Daily com­ments:

The in­ter­net loan com­pa­nies’ “in­no­va­tion” aims to by­pass the au­thor­i­ties’ ban on di­rect loans to stu­dents. They are re­luc­tant to cease their cam­pus busi­ness be­cause of the ex­or­bi­tant prof­its they can make.

The profit model of these com­pa­nies is sim­ple, yet crude. They en­cour­age stu­dents to en­gage in ex­ces­sive con­sump­tion then de­mand high in­ter­est af­ter the stu­dents fail to re­pay their loans in time.

The cen­tral au­thor­i­ties banned on­line loan com­pa­nies from ex­tend­ing loans to stu­dents in May. Al­though the ban slammed the break on the then ram­pant busi­ness, it stressed su­per­vi­sion of the com­pa­nies without clar­i­fy­ing the pun­ish­ments for those com­pa­nies vi­o­lat­ing the ban, and failed to de­fine what ser­vices were cov­ered by the ban.

The au­thor­i­ties have un­der­es­ti­mated the un­scru-

pu­lous­ness of the on­line loan com­pa­nies which have sim­ply dis­guised their stu­dent loan busi­ness as an “in­stall­ment re­pay­ment” ser­vice.

It is high time the au­thor­i­ties took im­me­di­ate mea­sures to rein in the on­line cam­pus loans in what­ever guise.

In the mean­time, col­leges and stu­dents’ par­ents should urge stu­dents to refuse the lure of the loan com­pa­nies’ “fat of­fers”. Stu­dents should also be given more fi­nan­cial ed­u­ca­tion, so they are bet­ter able to man­age their fi­nances.

The stu­dent loans pro­vided by State-owned banks and var­i­ous kinds of sub­si­dies and schol­ar­ships pro­vided by the gov­ern­ment are enough to help the stu­dents meet their nor­mal needs for con­sump­tion on cam­pus.

Stu­dents should learn to cul­ti­vate healthy con­sump­tion val­ues and habits.

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