Question Legalities behind investing Student Loans into cryptocurrency?

[Retrix]

Hello!

Say I have a friend that invests a part of their student loans into cryptocurrency, and then, later on, finds out that under the contract signed, that the loans are only for "necessities."

What would be a course of action any of you would recommend that would allow my friend to keep any capital gains made later on?

Any help would be much appreciated.

 

[Sols]

Contracts are not law. Unless there is a law forbidding spending student loans on something like cryptocurrency investments, you're looking at a civil law suit or equivalent in your jurisdiction.

In any case, enforcement is limited to the other party's ability to find out about what happened. So unless your friend is legally compelled to show them bank statements and agree to be audited by them, I don't really see any issue here as long as the loan is paid off. Chances are the lender won't care.

 

[CaptK]

Students spend a huge amount on beer I don't think that is a necessity.

As a responsible member of the group I would urge you to not but crypto with that money.

 

[Martin Everson]

Very bad idea to spend student loan money on anything other than what it is intended for. However it comes down to your friends morals. No one typically looks over your shoulders. Just make sure he can repay it in the end.