How To Pay For A Gap Year
Updated April 12, 2023
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A gap year for students is a break from formal academic study. Students may take a gap year after high school, or before entering college. They may also take a break while in college, or before starting graduate school. Some students take a semester off. Others take more than a year off. During this time away from the classroom, students may travel, complete internships, volunteer, or work part time or full time.
Gap year expenses vary. If you travel by air during a gap year, the flight to and from your destination typically comprises the largest expense. But smaller, incidental expenses can quickly add up. Some examples include daily transportation and laundry.
You can manage your gap year costs with a financial plan. Financing options include federal financial aid, scholarships, or grants. Read below for some advice on how to afford a gap year. As with all financial issues, speak with a financial advisor to receive guidance on how these tips and strategies apply to your personal situation.
FAQs
Q. Can you get financial aid after a gap year?
Students may qualify for financial aid after taking a gap year. However, you must resubmit the Free Application for Federal Student Aid for each year you wish to receive financial aid.
Q. Does taking a gap year affect the FAFSA?
Taking a gap year may affect the amount of financial aid you receive. Working during a gap year will also generate reportable income.
Q. Is it harder to get into college if you take a gap year?
A gap year for students can enhance college admissions profiles. Demonstrate on applications that you used the time to develop your personal and professional interests outside of a classroom.
Q. Can you take two gap years?
You can take two gap years. However, most students take 7-12 months away from school, according to a 2020 survey.
Plan Your Gap Year
Planning in advance eases concerns about affording a gap year. Creating your own gap year plan offers freedom and flexibility. However, you will have responsibility for handling — and paying for — all the details. A gap year travel agency can plan some or all of your experience. In exchange for paying a program fee, you will receive expert insight, advice, and support. The professionals will ensure that important details are not overlooked or left to chance.
If you will spend your gap year abroad, remember to budget for the time and money needed to obtain passports, visas, and other travel documents. Also keep in mind that the coronavirus pandemic — still ongoing when this guide was first published — may add complexity to travel planning.
Decide What To Do
Next, decide where you want to go and, perhaps more importantly, what you want to do. Some common reasons for taking a gap year include developing foreign language skills, building career experience, and becoming a world citizen by living and working in another culture. You may take a gap year without earning money by volunteering your expertise though internships or language tutoring. In exchange, you could receive free living accommodations.
Wanting to travel just for fun is a valid reason too. Travel facilitates human connection, broadens our horizons, and provides an opportunity to see and experience new things.
Create a Budget
Once you have decided where to go and what to do, create a budget. Where you go and how you want to live will influence how much money you'll need for your day-to-day living expenses. Depending on how you structure the experience, your expenses could range from $10 per day to more than $100 per day.
If you plan an independent trip, understand that you will be responsible for all incidental expenses. Finally, some gap year planning best practices include developing a flexible itinerary and avoiding travel during any holiday periods.
Fund Your Gap Year
You can use a variety of financial options to afford a gap year. First, you'll want to estimate how much it will cost. And the cost will vary widely depending on the destination, and what you choose to do while you stay there. Many gap year programs cost between $5,000-$12,000.
Travel will likely make up a large portion of your costs — both to the destination and around the area during your stay. The Gap Year Association suggests including an analysis of your spending habits in this process. Once you've incorporated your estimated gap year costs into your financial plan, you can start saving. If you choose a gap year program that offers college credit, financial aid may cover some of the costs. Grants or scholarships may also help offset the cost.
529 College Savings Account
It's possible to use a 529 college savings account to fund a gap year. However, limitations and some exemptions apply. You cannot use 529 funds to pay for gap year-related travel costs or daily living expenses. If you do, income taxes and a 10% penalty may apply. Before moving forward with this approach, experts recommend that you understand 529 plan rules.
Fundraising
Experts recommend making fundraising a part of your gap year financial plan. Fundraising could involve a number of initiatives, like launching a crowdfunding page, or sponsoring a trivia or athletic event. Regardless of the approach, part of the planning process should involve identifying "what you can do for your donors that would inspire them to donate to your plans," according to the Gap Year Association. Successful fundraising involves building awareness and interest in a cause.
Personal or Home Equity Loan
You may also finance a gap year through a personal or home equity loan. However, there are disadvantages in using personal loans or a home equity loan to pay for the experience. While repayment for education-related loans is usually deferred, the repayment for personal loans typically begins 30 days after the loan's disbursement.
Jobs
FInally, working can also offset gap year costs. A temporary or part-time job will build your resume and facilitate professional networking experiences.
Resources
Nate Delesline III
Nate Delesline III is a Virginia-based writer covering higher education. He has more than a decade of experience as a newspaper journalist covering public safety, local government, business, transportation, and K-12 and higher education.
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