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Loan dilemma!

My daughter is coming to the end of her second year at Uni, She has been working evenings to support herself, and although she had the full Loan amount for both years she has only paid her fees for Halls out of it. She has saved the balance of about £7-8K, I told her to do this so she wouldn't have to get a loan for her final year. Her dilemma is A: should she use her savings for next year as planned, or B: She is thinking of getting the full amount for next year again and saving it to use as a deposit on flat/house later on as it is a cheap way of borrowing.

Any ideas?

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