How Does Taking a Gap Year Affect My Financial Aid Status?

Written by: ARCC Staff

Deciding to take a gap year is an exciting and potentially daunting choice. You’ve chosen a different path than most of your peers and while you may not need to pick classes or decorate a dorm room yet, you are probably considering how and where you want to spend your gap year. Your parents may be asking about how this decision will affect your college acceptance, your federal financial aid status, or your scholarships. 

The answer will vary from school to school, and we encourage you to contact your specific college or university for clarification, but here are a few commonly asked questions and some helpful answers:

How does taking a gap year affect my college acceptance?

The majority of colleges and universities in the United States have a deferral policy for students looking to delay the start of their first year on campus. And while each school’s policy varies, it is generally a straightforward process done through the Admissions Office. As an example, the University of Oregon’s Admissions Office offers step-by-step instructions to admitted students on how to request a gap year deferral, preserve their academic status, and not miss any future deadlines. When an admitted student chooses to defer for a year, they will still be considered a first-year student upon their return. Earning college credit during your gap year would change your status to ‘transfer student’ and is discouraged by many colleges and universities. ARCC Gap offers the option to earn college credit through The University of Montana on all semester programs, and we encourage each student to review their school’s deferral policy before registering. Wesleyan University’s deferment policy, for example, specifically states that an admitted and deferred student is not permitted to apply to or enroll in any other educational institution.

How does taking a gap year affect my FAFSA status?

FAFSA, or The Free Application for Federal Student Aid, is a form that the federal government, colleges, and universities use to award grants, scholarships, loans, and work-study opportunities to students and their families. A student can apply on their own, or with their parent or guardian, and financial aid options are calculated based on income, investments, and family situations. Some universities require FAFSA paperwork as a part of their application as it factors into the scholarships they offer in-house. The federal government will also require you to re-apply for financial aid if you defer or decide to change your college timeline.

One thing to note regarding your FAFSA status and your gap year plan is whether you plan to make money. If you choose to take a job or paid internship during your gap year you will need to claim that income when you apply/reapply for FAFSA and it may change your awards.

How does taking a gap year affect my scholarships?

Scholarships offered by the college or university itself may or may not be dependent on your FAFSA status and it is best to speak with someone in the Admissions Office to get confirmation. Colorado College’s Gap Experience page explains that their need-based scholarships require reapplication after the student’s gap year while merit-based awards are nearly always automatically re-instated upon enrollment. Students accepted into Duke University’s Gap Year Program can receive between $5,000 and $15,000 towards existing or independent gap programs (with a few reasonable conditions). These gap-specific awards do not interfere with the student’s regular financial aid package.  

As support for gap years grows within the United States, colleges and universities are making it easier for students to defer and stay on track to return the following year. If you are applying to college and considering a gap year, one of your first steps should be looking at each school’s deferral policy and if they offer any extra support or assistance. The Gap Year Association also provides detailed information about accredited Gap programs, applying for deferrals, and finding financial assistance.

ARCC Gap Directors (415-332-5075 ext 2) are available to answer your questions and support you as your Gap plans develop. Our Financial Assistance and College Credit pages are an additional resource in this process.