Loans Student Loans Financial Aid Does a Gap Year Affect Financial Aid? What to Consider Before Taking a Gap Year By Jodi Okun Jodi Okun Facebook Twitter Jodi Okun is an expert on college financial aid and student loans—a subject she mastered over the course of 10 years as a financial aid consultant at Occidental College and Pitzer College, as well as other institutions. Now, as the founder of College Financial Aid Advisors, she helps thousands of families navigate the college financial aid process, covering everything from financial aid from grants to student loans. She has written about the financial aid process and student loans for The Balance. learn about our editorial policies Updated on February 10, 2021 Reviewed by Marguerita Cheng Reviewed by Marguerita Cheng Twitter Marguerita is a Certified Financial Planner (CFP®), Chartered Retirement Planning Counselor (CRPC®), Retirement Income Certified Professional (RICP®), and a Chartered Socially Responsible Investing Counselor (CSRIC). She has been working in the financial planning industry for over 20 years and spends her days helping her clients gain clarity, confidence, and control over their financial lives. learn about our financial review board Share Tweet Pin Email In This Article View All In This Article A Gap Year Isn't Just a Year Off Apply First, Then Request a Deferral Potential Credit For Activities Financial Aid Consequences Earning Money During a Gap Year Stay in Touch Be Prepared to Explain Your Gap Year Photo: Andrew Watson / Getty Images Over time, the cost of college continues to rise. As a result, it's little surprise that some students might decide to put off continuing their education immediately after finishing high school. Some students are simply not ready for the college experience, or they may want to explore the world a little more before settling into the college routine. Others use the opportunity to earn money to help pay down some of the costs of a college education. Along with that, there might be an interest in getting to know yourself before you commit to a costly college education. In the end, though, some students might decide that they want to attend college after their gap year. Even with the rising costs, college might still be worth it for them. Before you decide if taking a gap year is right for you, here are a few things to consider. A Gap Year Isn't Just a Year Off Your gap year should not be looked at as just taking a year to goof off and party before going to college. Potential colleges will not look favorably upon that, and your parents probably won’t appreciate it either. Instead, look at taking a gap year as a way to further refine your college and career choices. Find a program or an opportunity that really allows you to explore and find out who you are and who you want to be. Some of the advantages of taking a gap year might include: Travel and the ability to experience other culturesGain life experienceExplore career optionsTake a break from the academic trackVolunteerExplore study options Realize that a gap year can be a productive time for participants, and making the most of it can further your studies and your ability to make a difference later on. Apply First and Then Request a Deferral Many students find it easier to apply to college while still in high school, as there is a huge support system in place for this process. You have easier access to the necessary letters of recommendation, transcripts, and testing opportunities. On top of this, you also have teachers and counselors who can help you with your application. It can be difficult to achieve all of this on your own and the process can become even more cumbersome if you decide to travel during your gap year. Once accepted, send a letter requesting deferred admittance. Outline your plans for the gap year before your first tuition payment is due. In many cases, you might be able to convince the school to grant your request—especially if you have a plan to volunteer or work even while you travel. Ask If You Can Get Credit for Your Activities Some colleges will grant credit for activities performed during a gap year, particularly if they are of an educational nature. Talk to the admissions department, explain what you plan on doing, and find out if credit might be available. This could cut down on the number of classes you will eventually have to take at this college. Note There are resources, like the Gap Year Association, that can help you identify potential educational, volunteer, and work opportunities that might be compatible with earning college credit during your gap year. Watch for Financial Aid Consequences Most forms of financial aid require a student to be actively enrolled in a degree-granting program. Federal financial aid can be deferred for up to six or nine months (depending on your loan) until you start taking classes, but be aware that some colleges might not have institutional grants or scholarships available after a gap year. Check with your specific college to determine procedures for gap year students. Also, realize that you'll need to fill out your Free Application for Federal Student Aid (FAFSA) for the school year that you plan to return. There could be consequences related to your Expected Family Contribution (EFC) when you put off attending school. For example, the EFC formula takes into account how many students are attending college at one time. If an older sibling is in their senior year of college during your gap year, when you return, your EFC is likely to be higher now that your sibling has completed their degree. Note The EFC is being phased out and replaced by the Student Aid Index (SAI), beginning with applications for the 2023-24 school year. Should You Earn Money During Your Gap Year? While it might seem like taking a year to earn a substantial amount of money to help pay for college costs is a good idea, remember that you will still have to complete a FAFSA before starting your college classes. When you earn money, it has to be reported when you fill out the FAFSA. This additional income could inflate the amount of money you will be expected to contribute and might decrease your eligibility for financial aid. Note The good news is that you might be able to get some help paying for your gap year. Learn more from the American Gap Association, and find out about possible gap year scholarships and grants. However, even though it might impact your financial aid, it still might make sense to take a gap year. Carefully consider the options, and look into scholarships for your gap year to help with costs. One of the biggest downsides to a gap year is that it can cost money—and some programs are more expensive than others. You might need to find a way to earn money if a gap year is important to you, regardless of how it impacts your financial aid. Stay in Touch If you have been accepted to a college, be sure to stay in touch with them as you are considered part of their student body. Respond to their mailings and make sure you will be ready to join the freshman class once your gap year experience is completed. Find out if you can be assigned a counselor, or find someone in the admissions office you can rely on for information. Stay up-to-date on student orientation. Another consideration is that you might be able to enroll in online classes, depending on the campus and their openness to digital learning. If that's the case, you might be able to qualify as a student and even get financial aid, as long as your online classes qualify you for part-time attendance. Be Prepared to Explain Your Gap Year Later Finally, you might need to be able to explain your gap year. Future employers may look at the timeframes between your high school and college graduations and wonder about the gap. Be prepared to explain what you did during your gap year in a job interview, and show how that experience can actually make you a better employee. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. National Center for Education Statistics. "Tuition Costs of Colleges and Universities." Gap Year Association. "2020 GYA Survey Report." Federal Student Aid. "Basic Eligibility Criteria." Federal Student Aid. "Subsidized and Unsubsidized Loans." Information for Financial Aid Professionals (IFAP). "The EFC Formula, 2020-2021," Page 10. U.S. Congress. "Consolidated Appropriations Act, 2021," Page 5,139. Federal Student Aid. "Filling Out the FAFSA Form."