Many of you have already heard about the student debt crisis. From the 1.48 trillion in student loan debt to the growing trend of people delaying major life events because of this debt. With more people graduating with degrees, competition to get work has only increased, with many student’s wondering if going into debt for their college degree was really worth it.

Those who have covered all of their costs for school and still have money leftover are turning to cryptocurrency investments as a means to reduce their debt Although bitcoin and other cryptocurrencies are considered volatile, we have all heard of someone getting rich overnight. With debt looming like an unavoidable shadow, 1 in 5 students are taking the investment risk according to a Student Loan Hero Report. But are their investments panning out?

Is It Worth the Investment?

The short answer to this question is no. Predicting future prices of cryptocurrencies is still extremely difficult. According to the article “Should You Use Student Loan Cash To Buy Bitcoin,” the students that will find success investing their money will be few and far between. “The bottom line is that only a handful of students will make money doing loan investing. The rest will get burned,” according John Wasik, the above article’s author.

The growing interest in cryptocurrency investments can be attributed to a change in perception of normal financial institutions. According to the article, “College students are using student loans to invest in bitcoin. Yes, really,” Christian Catalini, a professor at MIT who studies cryptocurrencies, said, “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.”

He goes on to say that “People should not invest a single dollar in this that they can’t afford to lose immediately…if some of these students have been successful at shortening their loan or something else, I think it’s important to realize that might have been a random, lucky draw.” The idea of using financial aid money to reduce one’s debt by getting a positive return on their investment has many problems. From a financial perspective, cryptocurrency is a very unstable thing to invest in. Furthermore, it could potentially be a slippery slope legally.

Potential Legal Concerns

Although there is no system in place to regulate how people use their leftover money, it gives these individuals the freedom to spend it how they like. However, this money is supposed to be used to cover the costs of one’s education such as college living expenses. Using it for investment purposes can be construed as an inappropriate use of these funds according to attorney Adam S. Minsky, a specialist in regards to student loan affairs.

With the absence of a system to document the use of these funds, it is very likely that investments will continue. The best strategy to avoid getting to such a point of desperation is to attempt to get as much of your college paid for with scholarships or consider strategies, like attending a community college then transferring, to reduce the overall amount of money it will cost for you to get your degree.