University fees vs house deposit

[coconuttella]

I’m saving to give my children a decent start when they become adults...

I often hear about parents saving to tuition fees, but to me paying for a house deposit is a far better use of the money. Firstly, you might not have to pay back tuition fees. Secondly, it’s not unreasonable to think house prices will continue to outstrip wage growth in the medium-long term, so the sooner you get on the ladder the better. Thirdly, the sooner you have a house the less time you’re spending dead money on rent.

House deposit! Don't pay tuition fees upfront unless you have thousands to spare. There is no guarantee they will pay them back. They aren't negatively credit scored either.
A house deposit will be far more beneficial as it will allow them more flexibility with their mortgage.

Look up Martin Lewis - he gives some great info on student finance. I used to use his stuff all the time ehtn I was giving student finance talks!

Definitely, agree - save it for their house deposit. Aside from all of the various reasons both you previous posters have given (ie - it not being a 'real' debt & avoiding spending dead money on rent etc), it's also good to have to work within the budget of the loan that the government gives you when you're 18 - it makes you more responsible for your money.

We paid university fees. There is no guarantee that ds will stay in the UK, or have a job in one place either so renting is sensible in the shorter term. What may be sensible use of money to one person, isn't to another. Furthermore, gifting money for a deposit means you have to survive 7 years from the date of the gift for IHT purposes. Paying for university isn't counted for IHT purposes.

There is no guarantee that the student loan book won't be sold off again to more aggressive collectors, or that the banks won't take them into account for a mortgage in future, and iirc, they are noted now by some mortgage companies.

It also depends on your attitude to allowing your child to accumulate that sort of debt for university. If you can avoid it, why wouldn't you?

Myfamily You don't get to budget the money for the fees, they go straight to the university iirc. The maintenance loan is contingent upon parental income and in many cases doesn't cover the costs of accommodation if the parental income is high.

If you think your children might earn a fair bit and the 9% graduate tax would be a burden on them then fund the fees. ( I am funding the university fees for my two at university on the basis they take out no loans of any kind). I do work full time however and can also help a bit with a deposit too.