\n\t\t\t\t\tRobert Oakden thinks the student loans system is ‘bonkers’ and is trying to save for his daughter via her Junior ISA\t\t\t\t\t <\/p>\n
Robert Oakden\u2019s daughter is four, but he\u2019s already \u201csaving<\/a> hard\u201d in case she chooses to go to university<\/a> in 14 years\u2019 time.<\/p>\n Robert, a 46-year-old financial adviser at wealth management firm Quilter, says he wants to do anything he can to take away from the \u201cfinancial stress\u201d that she may face at 18, and does not want her to take out a student loan<\/a> because of how \u201cbonkers\u201d the system is.<\/p>\n \u201cStudents end up in an endless cycle of repaying their loans and it\u2019s a massive burden,\u201d says Robert, who lives in Nottinghamshire.<\/p>\n New FeatureIn ShortQuick Stories. Same trusted journalism.<\/p>\n University tuition fees<\/a> are currently capped at \u00a39,535 per year for most undergraduates, and students who go to university currently start to repay them once they earn over \u00a325,000.<\/p>\n They accrue interest at the Retail Prices Index (RPI) measure of inflation and repay the loans until they are cleared, or after 40 years, whichever comes sooner.<\/p>\n The terms could change in the future, but it means many graduates could end up repaying until their sixties<\/a>.<\/p>\n And Robert wants to prevent his daughter going through that.<\/p>\n \u201cWhile we don\u2019t have a set amount we want to save in mind, we want to accumulate as much as possible for her without putting ourselves and our finances under any financial pressure,\u201d he says.<\/p>\n He says his primary way of saving his making a contribution each month to his daughter\u2019s Junior stocks and shares ISA<\/a>.<\/p>\n The amount varies as Robert\u2019s income does, but he says the key thing is that he has the money in a \u201cvery high-risk\u201d portfolio.<\/p>\n This means the money has strong returns so far, even though it risks going up and down over time.<\/p>\n Savers can put \u00a39,000 a year into Junior ISAs and the gains they make are free of tax. They can invest the money in a stocks and shares account or place it in cash, but Robert says over time a lot of people do not realise that cash returns can be smaller than investments over the long term.<\/p>\n