Is it better to help your DC be loan free at uni or give them money for deposit?

[IsabelBeck]

DD will hopefully be going to university in two years on a 4 year course. She will get min maintenance loan (£4200, I think) which we will top up.

We've had a small inheritance and I'm wondering if it would be better for us to give her enough money so she doesn't have to take out any maintenance loan or invest the money in ISAs to be used for a house deposit some day.

House deposit.

The student “debt” is more of a small tax on earning over a certain amount.

House deposit definitely. Whilst it would be lovely not to have to pay out student loan repayments every month, it’s manageable as it’s just like an additional income tax. But it’s not easy to save up a house deposit without support.

Invest!

Deposit!

House funding is hard to come by. Student funding much easier.

Thanks for replies.

Is it best to put money into Lifetime ISA or stocks & shares ISA?

I’m certainly no expert but as I understand it lifetime ISA is probably a better option for this sort of thing as a stocks and shares ISA can be risky with no guarantee that you won’t lose money. Probably best to get some proper advice on investment options through if you are putting a substantial amount aside.

House always house.
You’ll always need a home whatever your educational outcome.

Lifetime isa would get the government bonus and lock the money away which could be quite beneficial If you’ve earmarked it for a deposit. Only 4K per year though. I would definitely still take the loan. Accumulating capital is hard but once you have it, you can make more.