Tougher measures needed to stop loan sharks exploiting students

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.