Taking a Break from College: When to Consider a Year Off

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No one decides to go to college expecting to drop out. But there are times when extenuating circumstances, or even self-discovery, can show you that college isn’t the best option for you right now.

And it’s not uncommon, either: 40% of college students don’t complete college within six years, according to the National Center for Education Statistics.

Taking a break from college is a hard step and can feel like a failure for some people. But in many cases, it’s the smartest move. Here’s how you can decide if it’s the right choice for you.

Taking a break from college: 6 times it makes sense

1. Facing a financial hardship
2. Dealing with a personal or family crisis
3. Grades are slipping
4. Not sure college is right for you
5. Unsure of your major
6. Got a great job offer

Sticking with college when it’s not right for you can waste time and money, damage your academic record and create needless student debt.

On the other hand, taking a break from college when you think you should can help you. You’ll preserve your good GPA and academic performance and remain eligible for financial aid.

Plus, if you do it the right way, you’ll leave the door open for possible re-enrollment if you decide to go back to college down the road.

Below are some common situations when taking a break from college can be your best way to find a path forward.

1. Facing a financial hardship

Facing a financial hardship that leaves you without the funds to pay for college is a legitimate reason to pause your education.

For instance, perhaps a parent who is covering college costs lost their job or is otherwise unable to help you financially. Maybe you have a financial emergency of your own (like an expensive car repair or a medical bill) that eats up your college budget.

When something comes up that derails your financial plans for college, it can be worthwhile to step back from school. Take the time you need to work, earn and save money. That way, you can get back on your feet and continue your education.

You’ll also avoid some of the negative consequences of remaining in college, such as poor academic performance or racking up unaffordable student debt.

2. Dealing with a personal or family crisis

A family or personal crisis can directly affect your ability to function and perform well in college.

As a college student, you might experience a death, disability or illness in the family that leads you to consider taking a break. Or your own health or wellness issues could arise while you’re enrolled.

In these situations, you might need to consider taking a year off during college to grieve, help your family recover or otherwise get back on your feet in your personal life before continuing your education.

Don’t hesitate to reach out to professors and college administrators during this time. They usually are willing to help you out in these special circumstances and minimize the negative impact on your academic record.

3. Grades are slipping

Another reason to consider taking a break from college is if your academic performance is poor and your grades are low. If you’re struggling to keep up with schoolwork or stay motivated in class, that’s a red flag.

Poor academic performance does more than hurt your GPA; it also can put your financial aid eligibility at risk. If you get bad grades or fail multiple classes, you could fail to make “satisfactory academic progress” — and lose access to financial aid.

Taking a break from college can help you understand and address the issues that are holding you back in your studies. You can spend some time outside the classroom to resolve any obstacles to academic success without damaging your record or GPA.

4. Not sure college is right for you

Maybe you’re among the many young adults who enroll in college because it feels like the next step — some students, for example, feel pressured by their parents to continue their education. Or maybe you know you want a degree, but don’t yet have a clear plan for what to study or how college might fit into your future goals.

If you aren’t sure whether college is right for you, taking a semester off to work, travel or just catch your breath can give you time to figure out what you want without wasting money on tuition.

5. Unsure of your major

“One reason a student might benefit from withdrawing from school is if they decide they do not like the major they’re pursuing,” said Brian Morris, communications coordinator for textbook exchange website Direct Textbook.

Switching majors midstream is costly anyway, but continuing to take unnecessary credit hours only adds to debt,” said Morris, adding that students should take a break, explore and even work in different career fields before returning.

“By doing so, they can save on college expenses and potentially earn money to put toward a degree they really want,” Morris said. “Plus, they can determine whether they truly want to pursue that degree.”

6. Got a great job offer

Let’s say you receive a great full-time job offer before you finish your degree.

For many people, college is a path to the career they want. But if you can land your ideal job and income without a degree, it’s worth considering — even if it means dropping out of school mid-semester.

Just make sure you understand how completing a degree could affect you down the line. Your current employer might not care about an incomplete degree, but that doesn’t mean the next one won’t.

What’s more, you might be able to finish your degree while working and “perhaps even work out an arrangement in which [your] employer helps pay for [your] school,” according to Morris.

Steps to take when taking a break from school

1. Understand how dropping out affects student aid
2. Meet with a financial aid officer
3. Talk to a college advisor
4. Find ways to continue earning credits
5. File a withdrawal or leave of absence
6. Know your student loan repayment options

Learning how to take a year off during college the right way can make a world of difference in terms of how easy it is (or isn’t) to return to school.

Follow these steps and make sure you understand all the implications of dropping out of college and how to set yourself up for success — whether you go back to school or not.

1. Understand how dropping out affects student aid

If you end up dropping out of college mid-semester, you might lose your scholarship or, worse, be required to repay financial aid, including grants.

2. Meet with a financial aid officer

You should meet and speak with your financial aid office. A financial aid officer can review the specifics of your situation and tell you whether you will need to repay financial aid.

They also can help you understand how a withdrawal could affect your financial aid eligibility and explain how to re-enroll in the future.

3. Talk to a college advisor

You also might want to meet with an academic advisor to discuss your plans and options. They can help you create a path to reach your goals, whether it’s a job that might not require a degree or an eventual return to college.

4. Find ways to continue earning credits

“There are ways to stay on track while taking that break,” said Adrian Ridner, CEO and co-founder of Study.com.

“Get creative and explore alternative credit options like online courses or competency-based exams,” Ridner explained. “Just be sure to check with your college about whether the credits will be eligible to transfer.”

5. File a withdrawal or leave of absence

You should make your withdrawal from school official with the registrar’s office. Make sure you ask for and fill out all required forms, so your enrollment status is up to date.

6. Know your student loan repayment options

In most cases, student loans are due six months after enrollment ends. If you’re dropping out with student loans, do some research about student loan repayment options that can help.

Options like income-driven repayment, deferment or forbearance can help with unaffordable student loan bills.

Although taking a break from college can be scary, that doesn’t mean it’s not the right move. If life is overwhelming or you’re confused about where you’re headed, taking a break from school can give you the space to work through your challenges.

Andrew Pentis contributed to this report.

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3.80% – 9.36%3Undergraduate and Graduate

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1.05% – 11.44%4Undergraduate and Graduate

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1.22% – 11.66%5Undergraduate and Graduate

Visit SoFi

2.76% – 7.14%6Undergraduate and Graduate

VISIT CITIZENS

1.24% – 11.99%7Undergraduate and Graduate

Visit Discover

* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.

1 Important Disclosures for College Ave.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
 
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a first year graduate student borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.10% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $141.66 while in the repayment period, for a total amount of payments of $16,699.21. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 4/22/2021. Variable interest rates may increase after consummation. Lowest advertised rates require selection of full principal and interest payments with the shortest available loan term.


2 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

3 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.  If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.


4 Important Disclosures for Earnest.

Earnest Disclosures

  1. Rates include 0.25% Auto Pay Discount
     
  2. Explanation of Rates “With Autopay” (APD)
    Rates shown include 0.25% APR discount when client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan.

    Available Terms
    For Cosigned loans – 5, 7, 10, 12, 15 years. 
    Primary Only – 10, 12, 15 years

    In school deferred payment is not available in AL, AZ, CA, FL, MA, MD, MI, ND, NY, PA, and WA).


5 Important Disclosures for SoFi.

sofiDisclosures

UNDERGRADUATE LOANS: Fixed rates from 4.23% to 11.26% annual percentage rate (“APR”) (with autopay), variable rates from 1.22% to 11.66% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.13% to 11.37% APR (with autopay), variable rates from 1.12% to 11.73% APR (with autopay). MBA AND LAW SCHOOL LOANS: Fixed rates from 4.30% to 11.52% APR (with autopay), variable rates from 1.29% to 11.89% APR (with autopay). PARENT LOANS: Fixed rates from 4.60% to 10.76% APR (with autopay), variable rates from 1.22% to 11.16% APR (with autopay). For variable rate loans, the variable interest rate is derived from the one-month LIBOR rate plus a margin and your APR may increase after origination if the LIBOR increases. Changes in the one-month LIBOR rate may cause your monthly payment to increase or decrease. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 4/1/2021. Enrolling in autopay is not required to receive a loan from SoFi. SoFi Lending Corp., licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. NMLS #1121636 (www.nmlsconsumeraccess.org).


6 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

Undergraduate Rate Disclosure: Variable interest rates range from 2.76% – 7.14% (2.76% – 7.14% APR). Fixed interest rates range from 3.01% – 7.50% (3.01% – 7.50% APR).

Graduate Rate Disclosure: Variable interest rates range from 2.19% – 6.73% (2.19% – 6.73% APR). Fixed interest rates range from 2.89% – 7.09% (2.89%-7.09% APR).

Business/Law Rate Disclosure: Variable interest rates range from 1.36% – 9.54% (1.36% – 8.82% APR). Fixed interest rates range from 4.13% – 9.84% (4.13% – 9.12% APR).

Medical/Dental Rate Disclosure: Variable interest rates range from 1.36% – 8.34% (1.36% – 8.04% APR). Fixed interest rates range from 4.03% – 8.64% (4.03% – 8.34% APR).

Parent Loan Rate Disclosure: Variable interest rates range from 2.10% – 7.41% (2.10%-7.41% APR). Fixed interest rates range from 4.69% – 7.83% (4.69% – 7.83% APR).

Bar Study Rate Disclosure: Variable interest rates range from 4.45% – 9.60% (4.45% – 9.53% APR). Fixed interest rates range from 7.39% – 12.94% (7.38% – 12.81% APR).

Medical Residency Rate Disclosure: Variable interest rates range from 3.55% – 7.05% (3.55% – 6.77% APR). Fixed interest rates range from 6.99% – 10.49% (6.97% – 10.07% APR).

Variable Rate Disclosure: Variable Rates are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of March 1, 2021, the one-month LIBOR rate is 0.11%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%. 

Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.

Lowest Rate Disclosure: Lowest rates require a 5-year repayment term, immediate repayment, a graduate degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.

Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer.  Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.

Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at any time. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank participating school.

Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.

Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.


7 Important Disclosures for Discover.

Discover Disclosures

  1. Aggregate loan limits apply.
  2. Get a cash reward on each new Discover undergraduate and graduate student loan when you earn at least a 3.0 GPA (or equivalent) in any academic period covered by the loan. Limitations Apply. Visit DiscoverStudentLoans.com/Reward for terms and conditions.
  3. Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans, and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including undergraduate, graduate, health professions, law and MBA Loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of April 1, 2021. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Your APR will be determined after you apply. Learn more about Discover Student Loans interest rates at DiscoverStudentLoans.com/Rates.
  4. Lowest APRs shown for Discover Private Consolidation Loans are available for the most creditworthy applicants who are approved and choose a shorter repayment term, and include a 0.25% interest rate reduction while enrolled in automatic payments. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of April 1, 2021. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Your APR will be determined after you apply. Visit Discover.com/student-loans/consolidation.html for more information, including up-to-date interest rates and APRs.
Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans, and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.