What should my DS do with this money for 3 years?

[palmette]

DS is taking out a student loan of £8,000 a year and can probably save £6,000 of it. This is in order to fund a postgraduate course incase he doesn’t get funding for it or to help with living costs early on in his career where we can’t give anymore.

So where can he invest £6k for three years and £6k for two etc

Currently he has it in a normal 3% interest account gaining nothing and actually costing him when the student loan interest is taken into account..

It will be very difficult to reliably make more than 3%, especially if it's a static amount of money (eg, some of the best savings accounts require a certain amount to be paid in each month). I think he'll be paying a whopping 6.9% interest on his student loan, and any company that says they can guarantee that return, and won't risk his capital, is a scam.

I'm not sure his plan of borrowing money now, in case he needs it in the future, is a very sound one. Borrowing money is almost always more expensive than saving it. Even though it will probably eventually be written off in a student loan, it will affect his take home pay and his ability to borrow for most of his working life.

I know the terms will be different, but I'd seriously consider him taking out a graduate student loan if he needs one.

Graduate student loans take 6% of earnings after graduation and undergrad 9%. Leaving a total of 15%. Therefore it would be better to take a bigger loan at 9% than a loan at 9% of earnings AND a seperate 6% of earnings.

He can then use that money as if it were a graduate loan, or he can bite the bullet and pay back a lump sum at the end of the degree when he knows more about his prospects.

Feel free to correct me onthe above of course!