CREDIT: DAOLEDUC / THINKSTOCK
Hopefully your parents set up an RESP for you when you were born.

Ontario tuition is one of the highest in the country, so it is understandable that many students have a hard time paying it off. With the new semester starting and reminders that tuition payments are due, Interrobang spoke to Andrew Smith, district vice president of London and area for Scotiabank, who brought his 25 years’ worth of experience in banking to give Fanshawe students some advice on how to graduate debt free, if possible.

Smith said the best way to prepare for paying for school is to already have a savings plan put in place by your parents. The most common, a Registered Education Savings Plan (RESP), would ideally be set up when you were born and your parents would make small payments on a consistent basis towards it.

“[An RESP] really is a wonderful lead into helping a student go through post-secondary and come out debt free,” said Smith.

Some tips for parents to grow an RESP fund are:

• Start as early as possible

• Involve extended family

• Speak to a financial advisor to find what plan best suits your lifestyle

Smith acknowledged that not everyone has parents who thought this far ahead, but those who do have a greater advantage of graduating debt free.

Can’t travel back in time and give your parents some financial advice? No problem. Many students enter post-secondary education with no education savings at all, but that does not mean you are out of options.

Most students have heard about the Ontario Student Assistance Program (OSAP), which can provide student loans to those who otherwise could not afford to go to school on their own. Students must apply online and will receive loans and bursaries based on their financial need. OSAP has capped the amount of loan money that must be paid back at $7,400 for a two semester school year, therefore any money received that exceeds this amount is a bursary.

For students who cannot afford to pay for their tuition up front, OSAP is extremely helpful.

Unfortunately, OSAP does not solve the problem of graduating without any student debt, though it remains an excellent option for many students.

“If there is going to be debt at least it can be minimized by the proper program and the advice behind it,” Smith said.

Graduating debt free may seem like a far away dream for many students, but Smith said it is a reasonable prospect if students take advantage of opportunities around them and educate themselves about how to save their money.

Smith pointed out a helpful website that provides financial tips for students. A collaboration between Scotiabank and Yconic, fundyourfuture. ca offers opportunities to win money for school, to apply for student credit and more through Scotiabank.

But ultimately, if you find yourself struggling to save up enough money on your own or feel stressed about your financial situation, Smith suggests speaking to a financial advisor at a bank for assistance.

“There’s nothing better than seeking guidance and advice and following it because everybody wants to see those students succeed and not be burdened by things that would get in the way of that success,” Smith said.