Informal loans at universities where students are the lenders

Abstract

This article is a study of the phenomenon of university loans among students. The objective is to understand how this phenomenon occurs, as well as the reasons or necessities driving students to engage in this practice. Additionally, it aims to explore students’ attitudes towards the laws related to this matter. The study found that nearly all student loans are illegal, with most of the terms being extremely unfair to student borrowers. However, despite being in a position where they are being taken advantage of due to their need for money, student borrowers did not demand or challenge those terms in any way. Informal loans like these are often the only source of money that students can access. Therefore, students’ attitudes towards this matter manifest in ignoring the law and not fighting to protect or demand their rights in any way.

Keywords: Informal loans, Universities, Students