Should you take a gap year before college? Factors to consider

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Should you take a gap year before college? Factors to consider

Not everyone go to university. And not everyone starts studying right after graduating from high school.

Many students take what is known as a gap year before entering college for a variety of reasons. While this practice is more common in the UK and other European countries, Gap Year interest rates are on the rise in the US. according to the nonprofit Gap Year Association.

Students can plan from the beginning college admission process Take a year off after high school for personal growth and development, or use the time to work and Save extra cash. Others may review their admission offers and financial aid packages and decide they want to try their luck in the next application cycle.

As many students and families are anxiously awaiting delayed financial aid payments due to Problems with applying for free federal student aidTaking a gap year may give some students more time to consider their college decision.

Regardless of why you take a gap year, it “may help you financially… or not help you, depending on the circumstances,” says Karen McCarthy, vice president of public policy and federal relations at the United States. National Student Financial Aid Administrators Association, said. told CNBC Make It.

If you have been accepted to a school and decide to defer your application for a year, the processing of your admission offer and financial aid package will be up to that school. In many cases, you still have to pay a registration deposit to reserve your spot for the next class.

You may also be barred from applying to other universities if your place is held at one school.

Ultimately, the decision to take a gap year will depend on your personal circumstances and your family's needs, but there are some factors to keep in mind if you're planning to go to university afterward. These three Gap Year scenarios could affect your cost of attendance.

1. If you move to a new state during your leave

Many public colleges offer discounted tuition for students living in the same state. In fact, the average out-of-state tuition of $27,091 per year is nearly three times higher than the average in-state tuition of $9,678, according to Education Data Initiative.

States and institutions determine what eligible for residence in the state, and you or your parents may need to live in the new state for a full year to establish residency. Therefore, moving to or from a state during your leave may affect your tuition.

“If your family recently moved to the state, you will not be considered an in-state student,” McCarthy said. “But if you take a year off, it's about that time [when you enroll]Assuming your parents are still in the same state, you may be considered an in-state student.”

That could lower or increase your tuition costs, depending on where you move and where you study. You may also lose state financial aid if you leave the state that originally granted it to you.

2. If your or your parents' income changes

You need to fill out a new Free Application for Federal Student Aid each year you want to apply for financial aid. Whether you apply to schools and submit a FAFSA then decide to take a year off or don't apply at all, you'll need to fill out a new FAFSA when you're ready to apply, McCarthy says.

That means if you're taking a Gap Year in hopes of receiving more financial aid, your parents' income will likely have to decrease in the year before your Gap Year.

The FAFSA considers the income of the student and the parents – unless the student is qualified for independence — from the “prior year” to determine a student's eligibility for aid. Families filling out the FAFSA for the 2024-25 school year are using their 2022 income.

Students who wish to leave school during the 2024-25 school year should consider their family's 2023 income situation, as this will be the fiscal year used to determine aid eligibility for the school year 2025-26.

If your income or other financial circumstances change in 2023 compared to 2022, your eligibility for assistance may be different. The Ministry of Education has it Financial aid estimator you can use to evaluate how changes in income may affect your eligibility.

3. If your dependent status changes

If your personal circumstances change during the Gap Year, your FAFSA process may be different when you are ready to apply. FAFSA considers applicants to be students independent of their parents if they meet any of the following 10 criteria:

You are or will be 24 years old by January 1 of the school year for which you are applying for benefits
You are married or separated and not divorced
You are studying for a master's or doctoral degree
You have children who receive more than half of their support from you
You have non-child dependents who receive more than half of your support
You are serving on active duty in the United States military
You are an American veteran
Both of your parents have passed away or you have been in foster care or ward of the court at any time since you turned 13 years old
You are an emancipated minor or legal guardian
You are an unaccompanied youth who is homeless or at risk of becoming homeless

Students in any of these situations may not be asked to provide parental financial information on the FAFSA. As a result, if any of those statements come true for you during your leave of absence, you may receive a financial aid package that is different from the other financial aid package you have.