There has been a lot of controversy lately surrounding the ‘Loan shark’ firm, Wonga.com According to this article, Wonga is charging students insane interest fees of 4,214% APR.
The company is claiming to step in and be a great alternative government backed student loans, which have only an APR of around 1.5%.
While it is not a smart idea to market such high interest loans to students who are already deep in debt with student loans, it has been officially stated by Wonga, that this particular page that is marketing these types of loans to students, has been taken down.
The consensus on this story is outrage by many people condemning Wonga, for what they call immoral lending practices. These same people speak about “all of the alternatives” available to a student–or anyone in a desperate financial situation for that matter–when in reality, the only option poor people have is to obtain high APR loans and hope for the best.
Wonga is not the only company that is providing these types of loans either. It seems that everyone has jumped on the media bandwagon and and created a ‘witchhunt’. Just Google ‘student payday loans’ and you’ll see what we mean.
What are your thought on Wonga?
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