Chinese students who borrow from certain online lenders submit nude photos and videos as IOUs, but that is only part of the real issue. The interest rates of up to 30% per week cause many of them to default quickly, resulting in borrowing more from the same lenders. The lenders threaten to release the photos and videos to the students' families if they do not pay. The vicious cycle piles up charges so much faster than students can pay, which is the real problem. The pressure to preserve their dignity is overwhelming.
Students even students with scholarships are finding themseleves with tens of thousands of dollars in student loan debt. Not only are these loans getting harder to get, but they are also getting harder and harder to pay off. Students often don't make enough money to pay off thier loans at a reasonable rate.
Loan sharks in China demanding nude photos as insurance that students won't default on loans is pretty extreme. Most people wouldn't do that unless they were desperate, and saw no other way to get the loan. There's a lot of pressure on students to fund their education, and loans can take years to repay.
Any person who legitimately wants to pursue higher education should have that opportunity without all the pressure of securing and paying back the debt that typically goes along with it. If college is not free to everyone, than funds should at least be available easily and readily for anyone who is serious about attending.