After 13 years of school, taking a gap year after high school before tackling another 4 years of college has grown in popularity in recent years, and for good reason. This time allows students to live in the real world, travel, work, gain life experience and truly understand what they enjoy and what they don’t, before heading off to college. After a gap year, students are more confident as well as prepared for college, having refined somewhat who they are and what they want out of life.
For all its benefits, gap years can disrupt momentum gained on the path to college. For example, if you worked during a gap year and earned a salary, your financial aid eligibility may change, impacting how much aid money you have available to use for college. If you saved that money, you could use it for tuition, if you used that money to travel or make a big purchase, you might find yourself in a situation you didn’t plan for. It’s important to plan when considering a gap year, so after a fruitful year, there are no unexpected financial surprises when heading back to school.
Reapply for Financial Aid
When you take a gap year, you’ll need to reapply for financial aid when you return to school. Here’s how you can do that:
Update Your FAFSA
Your first course of action is to fill out the FAFSA (Free Application for Federal Student Aid). This will determine your eligibility for any need-based federal financial aid. The FAFSA form is submitted every year you are in school. The form opens each year on October 1 for the following academic school year. Be sure to pay close attention to deadlines to ensure you fill out the form prior to both federal and state cutoff dates.
If you worked during your gap year and earned money, you’ll need to report that income on your FAFSA. Any changes to your finances in the past year could potentially change eligibility for aid. It’s important to be honest and report your information as accurately as possible.
State and Institutional Aid
Federal financial aid is not your only resource, there are also many state-specific programs and opportunities at your school you can investigate as well. Be sure to reach out to the financial aid office at your school to understand what they can offer. Additionally, some states have grants and scholarships available for students who attend in-state public schools. As your gap year comes to an end be sure to check into these resources to ensure you are all set when you return to school.
Apply for Scholarships
Scholarships are a great way to help pay for college. They aren’t only for high school seniors to apply for as they prepare for freshman year, scholarships are available for all students, throughout all your college years. By applying for scholarships while on your gap year, you can potentially reduce your college costs.
Focus on Gap-Year-Friendly Scholarships
If you choose to spend some of your gap year volunteering or serving at various organizations, you may be able to earn education rewards that can be used towards your tuition upon return to school. AmeriCorps is one such organization where you can earn awards after completing a term of service that can help cover college expenses.
Also do some research into private scholarships offered by organizations that support students who desire to take a gap year or participate in experiential learning to gain global or cultural awareness. Not only can your gap year be a rewarding experience for you but can also help contribute financially to your educational goals afterwards. Don’t assume you are on your own if you choose a gap year. There are several organizations that value the same experiences you do, so be sure to seek these opportunities out.
Broaden Your Search
Outside of these experience-based scholarship opportunities, there are always traditional scholarships. Searches can be more efficient if you use a reputable scholarship search engine like the Scholarship Finder on Edvisors to help find additional opportunities to win money based on your specific talents or interests.
Make sure to take advantage of any new skills, experiences or travels taken during your gap year. A scholarship that might have been out of reach before your gap year might be attainable afterwards. Sit down and make a list of any unique attributes you possess that you can use to filter the lists down and come up with scholarships for which you have the highest changes of winning.
Save and Plan During Your Gap Year
Taking a gap year doesn’t have to be just a break from education, it can also be a great time to save additional money for college. If you use the time wisely and plan well, you can build up your savings, reducing your total college costs and potentially the need to borrow any money.
Save as Much as Possible
If you are even the littlest bit concerned about paying for college, a gap year could be the perfect solution for you. You can find a full or part-time job and save your earnings. One year’s wages could go a long way to pay towards tuition, books or other future expenses.
If you happen to have a 529 plan, or even if you don’t, this might be a good time to start one. A 529 plan is savings account specifically designed to help you cover your educational expenses. The money can grow tax free and as long as you use it for qualified educational expenses. This would be a great place to deposit your wages and let your money grow throughout your gap year.
To help make your money last even longer, you can use this year to seek out free or reduced cost options for other things you need to pay for at school. For example, you might consider public transportation instead of your own car or seek out student discounts for school supplies and such to help you save money. You might even speak with the financial aid office to see if they know of any affordable housing options in the area. Housing can be one the highest expenses after tuition, when attending college.
Reduce Future Educational Costs
A clear way to save money on your total cost of college is to consider going to a community college. Most degrees require several general education courses that quite literally could be taken anywhere. Just make sure the units are transferrable to your 4-year university. The costs of attending a community college are a lot less than an in-state public school and can equate to thousands of dollars in savings.
Another cost saving strategy is to test out some of those general education classes through CLEP (College Level Examination Program) exams. These tests verify that you already know the subjects well enough and demonstrate that it’s not necessary to take the class. By successfully passing the test you can earn the college credit for the class, allowing you to spend your time and money on other classes you’ll need to take. If you think you might be able to CLEP out of some classes check with your school and review the options available to you.
Explore Alternative Funding Options
When planning to pay for college after a gap year, it's important to explore all the funding options available to you. Thinking outside of the box can help you make smart choices and reduce financial stress in the long run.
Consider Student Loans Wisely
Student loans can be a helpful tool, but you’ll want to borrow carefully so you don’t take on more debt than you can handle. Start by estimating the total cost of your college education, including tuition, fees, books, and living expenses, and then subtract any other funding you’ve already secured, like scholarships, grants, or savings. The amount left is what you might consider borrowing.
When choosing a loan, prioritize federal loans over private loans. Federal loans offer valuable borrower benefits like income-driven repayment or loan forgiveness programs. You can apply for federal loans by completing the Free Application for Federal Student Aid (FAFSA).
After you’ve exhausted all your federal aid options only then should you look into to private loans. These loans are offered by banks or other lenders and may have higher interest rates and fewer repayment options, so it’s important to compare terms carefully before committing. Borrow only what you truly need to keep your future debt manageable.
Look Into Crowdfunding and Peer-to-Peer Lending
If you’re looking for a unique way to fund your college education, crowdfunding and peer-to-peer lending can be worth exploring. Crowdfunding platforms, like GoFundMe allow you to share your story and goals with friends, family, and even strangers who may want to support your education with small donations. When using these platforms, make your campaign personal and clear, tell people why you’re pursuing higher education and how you’ll use their contributions.
Peer 2 Peer Lending is another option where individuals lend small amounts of money to students. Websites likes this one can offer ways to connect with people who are willing to support your education through small-scale loans. However, just like with any loan, make sure to read the terms carefully and ensure that the repayment plan fits your budget.
Leverage Your Gap Year Experience
Taking a gap year can be a smart move, especially when it comes to helping you pay for college. The key is to use that time wisely, so it not only helps you grow but also improves your chances of securing financial support for school.
Use Your Gap Year to Stand Out in Applications
The activities you take on during your gap year can make a big impact when applying for scholarships, grants, or other funding opportunities. Colleges and organizations often look for candidates who show initiative, responsibility, and character. Did you volunteer in your community, work a job to save money, or participate in a meaningful project? These experiences tell a story about your dedication and grit, qualities that scholarship committees value. Be sure to highlight these accomplishments in your scholarship essays and college applications. Showing how you’ve grown during your gap year can make your application stand out and open doors to extra financial support.
Network for Support and Advice
Your gap year is also a great time to build relationships with people who can point you toward funding opportunities. Connect with mentors, school counselors, or even friends and older peers who have been in your shoes. They might know about scholarships you hadn’t considered or share tips on how they managed to pay for college. Local community groups, alumni networks, and online forums can also be excellent resources for advice. Don’t be afraid to ask questions or reach out, many people are happy to help guide you in the right direction. Networking through these channels can uncover hidden gems of financial support and make your college dream more affordable.