Which is the better position- no debt or big down payment?

[Claire Findley]

So Im looking to buy a long term home/townhouse/condo in the nearish future. I have 12-15K in student loan debt. I have enough in savings to pay it off but then I would have much less for a down payment. Id rather wait to pay as my employer is currently paying several hundred per month to help payoff my loans as part of my benefits. So If I wait Ill have to pay less out of pocket because my employer will be paying the bulk of my loans. Id rather do that but I don't want the debt to hurt me buying a home.

Basically, my question is- Is it better to have no debt and a small down payment or some debt and a much larger down payment (10-20K more)?