If it's a bursary or grant that does not need to be repaid, then I would put it in a "riskier" investment like an equity index ETF or low MER index fund. However, for the portion of the loan that needs to be repaid after four years, then I would definitely put it in somewhere safer, like GICs. His "riskier" investments can also be from savings from his first job after graduation, or from part-time work during university.