How does student finance work with a gap year?

If I take a gap year after high school, how will that affect my student finance situation when I eventually start college? Are there any changes to loans or financial aid that I should anticipate?

It's great that you're thoroughly considering your financial situation in your college planning! Here's how a gap year can potentially impact your financial aid:

One of the key things to understand is that your financial aid eligibility is determined by your family's financial situation in the “prior-prior” year. If you were to start college right after high school, the financial data from your high school junior year is what colleges would use. If you take a gap year, it would be your high school senior year figures that come into play. If your family’s financial situation changes significantly during this time, it might affect your financial aid package.

As for federal aid, you would still apply using the FAFSA (Free Application for Federal Student Aid) form. Note that you'd have to submit this form each year you're in college, because it's used to calculate your financial need annually. So, the information you provide for your gap year will be pertinent to your financial aid for the following year.

When it comes to merit scholarships from colleges, some schools will let you defer admission and your scholarship for a year, but this varies among institutions. If a school doesn't allow deferment of scholarships, you might have to reapply for the scholarship when you apply again for admission.

If you're granted any loans before your gap year, you should reach out to your lenders to ask about deferring payment. Many loans are deferred while you're in school, but if you're not in school, they might become due. However, many private lenders and the federal government allow you to defer loan payments if you're participating in a gap year program.

Bear in mind that you'll likely have to reapply for financial aid after your gap year, because most aid packages are not automatically extended. This is because colleges want the most recent financial information to make award decisions.

In summary, taking a gap year could change your financial aid package depending on numerous factors such as changes in your family's financial situation, the policies of your chosen institution, and the terms of your loans. It's always a good idea to communicate with your chosen college’s financial aid office, as well as potential lenders, in order to fully understand how a gap year could impact your situation.