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.

The central authorities banned online loan companies from extending loans to students in May. Although the ban slammed the break on the then rampant business, it stressed supervision of the companies without clarifying the punishments for those companies violating the ban, and failed to define what services were covered by the ban.

The authorities have underestimated the unscrupulousness of the online loan companies which have simply disguised their student loan business as an "installment repayment" service.

It is high time the authorities took immediate measures to rein in the online campus loans in whatever guise.

In the meantime, colleges and students' parents should urge students to refuse the lure of the loan companies' "fat offers". Students should also be given more financial education, so they are better able to manage their finances.

The student loans provided by State-owned banks and various kinds of subsidies and scholarships provided by the government are enough to help the students meet their normal needs for consumption on campus.

Students should learn to cultivate healthy consumption values and habits.