DSS debt free after uni or lum sum towards house deposit?

[Friyay27]

DSS is in his last 2 years of school, wants to
go to university. We want to give him
The best possible start in life, and we are in the position to either pay his fees for uni or pay the same amount into a bank account and give him around 40-50k towards his house deposit when he graduates.
His tuition debit is some of the 'lowest rate' debt he'll ever have and it's deducted at source. If you had the choice for your child - what would you do?

Goodness if going to uni I sure hope most graduates will be earning at least £25k, the minimum amount when you start paying back the loan - that's not much above minimum wage! They also have 40 years to replay it so the majority will pay it back and much more in interest. Yes it's 'only' 9% interest of earnings above £25k, but how would you like a 9% increase in your taxes?
OP, student loan interest is currently 7.9%, and starts accruing from the day they get the loan. So if you decide to do the uni don't have them take a loan at all just pay up front.
But weigh it up carefully. If going for something with a high starting salary I'd pay for uni, as they will probably be able to save for a deposit and get a decent mortgage themselves.