Online Loans, Student Lifestyles, and Financial Behavior: Implications for the SDGs

Abstract

Objective: This study aims to explore the influence of online loans on changes in students' lifestyles and financial behaviors, focusing on the impact on consumption patterns and financial management in the digital era. Theoretical framework: This study examines how online loans influence financial behavior and consumption patterns, emphasizing financial literacy and responsible consumption, aligned with SDG 4: Quality Education and SDG 12: Responsible Consumption and Production. Literature review: Research shows that online loans increase impulsive spending and debt risk, with limited focus on their impact on students’ lifestyles. This highlights the need for improved financial education, aligning with SDG 8: Decent Work and Economic Growth. Methods: A quantitative survey method was employed, collecting data via questionnaires distributed to 300 students from various universities across Indonesia. Descriptive and inferential statistical techniques were used to identify significant patterns of change in students' lifestyles and financial behaviors, with a particular focus on spending and financial management. Results: The results show that online loans significantly influence students' lifestyles, leading to increased consumptive spending and altered spending patterns. Approximately 70% of students used loan funds for non-essential items and social activities, which indicates a shift from need-based to desire-based consumption. Furthermore, the study found that online loans decreased students' ability to manage personal budgets and increased the risk of long-term debt. These findings are linked to SDG 10: Reduced Inequality, as they suggest that unequal access to financial education exacerbates financial vulnerability among students. Implications: The study calls for more intensive financial education programs to help students understand the risks of online loans, supporting SDG 4: Quality Education and SDG 8: Decent Work and Economic Growth by promoting financial literacy and economic stability. Novelty: This study contributes new insights into how online loans affect students’ financial behavior, bridging gaps in the literature by linking financial literacy with loan use, contributing to SDG 4: Quality Education, SDG 12: Responsible Consumption and Production, and SDG 10: Reduced Inequality.