Personal Finance

But there’s a big difference between learning and experimenting, and putting your financial health at risk by using borrowed money to invest in a digital currency that could not exist in a few months.

“If you invest the student loans in cryptocurrency and lose money, you will still owe the student loans,” said Mark Kantrowitz, a student loan expert. “And, where will you get the money to pay for college costs?”

To be sure, students aren’t the only ones using debt to get into cryptocurrencies.

Nearly 20 percent of all people who own cryptocurrencies went into arrears to invest in them, according to a recent survey of 3,000 people by CoinDesk, a digital tokens information company.

“Investing from a credit card or a loan is a terrible idea as these assets are extremely risky and volatile,” said Christian Catalini, an assistant professor at Massachusetts Institute of Technology who researches blockchain technology and cryptocurrencies.

He added, “Nobody should invest any amount in this space that they cannot afford to lose immediately.”

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