Supporting adult children

[timoteigirl]

Which one is more useful, paying their student loan or giving money towards deposit to buy a house? Study loan over 50 grand. Not calculated yet how much I could support with. And does anyone know of any tax implications?

I've read a bit on this and I'd say house deposit rather than student loan.

I’d say house deposit as student loan repayments are dependent on salary, and it’s so hard to get on the property ladder nowadays.

House deposit every time. Student loan is just a complicated way of having a graduate tax.

House deposit. It took me 20 years to save enough whilst paying rent.
not paying rent and building equity would have had a much bigger impact than not having student loan repayments.

House deposit.

Money used for a house deposit has a permanent effect on monthly mortgage payments. Student loan repayments already adjust to income, so overpaying them doesn’t offer any financial security. But a larger house deposit reduces future financial pressure.

House deposit

If you haven't got enough to pay for all the student loan, then house deposit 100% if you had £20k you could give them, they would still have a student loan, they still have to pay the same out of their wages and the interest is so high on student loans that most people aren't even covering the interest, so will likely have to wait the 30 years for the debt to be written off anyway, so your contribution would have been pointless

Thanks for everyone who's answered. It seems all of you agree on the choice.

100000% house deposit. A student loan is more of a graduate tax, and doesn't impact ion how much they can afford for a mortgage, whereas a deposit would affect it.

My ex paid our son’s costs at uni but he does have funds to help with deposit if needed later. However DS has graduated and has landed a good graduate job, so is on track for a good salary in the city so might not be needed. Fortunately for him, no student debt to be repaid as he would repay it all on his salary.

He is in finance, so all being well, will earn well, but had he been a nurse / paramedic or a job not necessarily guaranteed to bring in a good income then maybe his dad would have advised him to take the loan. Probably not though as he said he benefitted from a free education and wants the kids to do the same, and as he has worked overseas for many years, he has built up the funds to do that.