Parent dilemma - pay back loan for year 1/2 or keep and instead pay for fees for year 3/4

dh-york

I want to help my daughter with Uni fees, but I'm not clear if it is better to pay off the loans she has for her Year1&2 that are accruing interest or instead Pay for her Year 3/4 fees directly so no loan needed .... (I hope be able to pay for all 4 years in future)

She is studying Psychology and I've no idea of her career prospects/Salary in future BUT my other daughter is degree debt free as she did an apprentice and I'm looking to have them in the same/similar position in future

Foundation year 2023/2024
Year 1 2024/2025
Year 2 2025/2026
Year 3 2026/2027

silvercar

I’ll move this to the student board. You may be able to find similar discussions over there.

Exodi

Makes no difference as I understand it would all be charged at the same interest rate.

silvercar

The money may be better spent on a house deposit or even a pension. But I can see this is about equality between siblings, rather than the best use of the money. It’s an interesting case where one has chosen to avoid being landed with fees by choosing an apprentice scheme instead, would they be happy for you to fund the others university, given they chose the non fee route?

Considering whether it is worth paying off a loan, or paying outright, estimate future income and whether the loan is going to be written off by the government eventually. It could depend what your daughter intends to do with her psychology degree. It is pure crystal ball gazing at the moment, so one option may be to max out the loans now and repay them if her career takes off financially.

dh-york

silvercar said:

The money may be better spent on a house deposit or even a pension. But I can see this is about equality between siblings, rather than the best use of the money. It’s an interesting case where one has chosen to avoid being landed with fees by choosing an apprentice scheme instead, would they be happy for you to fund the others university, given they chose the non fee route?

Considering whether it is worth paying off a loan, or paying outright, estimate future income and whether the loan is going to be written off by the government eventually. It could depend what your daughter intends to do with her psychology degree. It is pure crystal ball gazing at the moment, so one option may be to max out the loans now and repay them if her career takes off financially.

The other daughter didnt really have a choice ... Police ... she HAD to do a degree course when she joined... although personally I'd support Degree Apprentices over Uni ..then a job, but they so rare to find.