Attending college is a financial decision that can impact graduates and their families for years after they complete their degree, if not decades.
And if that wasn’t stressful enough, the ongoing coronavirus pandemic may have you thinking about deferring higher education, whether you’re a student or have one in your family.
“Colleges and universities are using the best available information to make decisions about the fall. However, many of these decisions are yet to be finalized,” said Laura Brennan, director of Texas OnCourse, a college and career planning resource for students in Texas.
“One sure bet is that the frequency in which students enroll in online college courses will increase,” she said. The University of Texas at Austin, for one, is converting 3,500 of its 11,000 online courses to online format for the fall, she noted.
“Every school is trying to figure out what’s right for its student body, and families need to consider what’s right for themselves financially,” Christine Roberts, heard of student lending at Citizens Bank, said. She said that while online learning may work well for some students, it may not be the right thing for everyone. “You want to make sure the expense matches the experience” you’re looking for, she said.
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Can I still defer?
If your school is pushing ahead with in-person classes and you don’t want to go back to campus yet–or you have any other reason under the sun you want to delay your studies—it’s not too late to defer, explained Kevin Walker, CEO of CollegeFinance.com. But since every school may have a slightly different policy, Walker said to contact your admissions office (if you’re a new student) or registrar (for returning students) to ask about your options.
“A key thing to confirm is that scholarship commitments will be in place after a gap semester or gap year,” he said. “Some grants require continuous enrollment. Make sure to confirm policies regarding continuation of financial aid in writing.”
Can I ask for more financial aid?
If your family’s financial situation changed due to the pandemic, the time to talk to your school’s financial aid office is right now.
“The FAFSA is based on prior-prior year income, which is pre-pandemic,” said Mark Kantrowitz, publisher and vice president of research at SavingforCollege.com. Your school won’t know about your family’s job loss or salary reduction unless you communicate those details.
While you’re probably not going to get a tuition discount if your school has moved online, you do have the right to appeal for more aid.
Can I take a gap year?
A gap year can provide a meaningful alternative for students who didn’t love attending Zoom University during the abbreviated spring semester. But it’s not a decision to make lightly, Roberts warned. “Go back and talk to your school,” she said. “Some schools have amended their gap-year practices. Some will say you need to reapply [after a gap year]. Some will say the gap has to be two years instead of one.”
Maybe I’ll transfer. Can I transfer?
It may make financial sense to spend a semester or two closer to home, taking classes at a commuter school or through a lower-cost online option. But make sure any credits you take during a leave of absence from your main school will transfer when you return. “You don’t want to pay for a semester of community college only to find out those credits don’t transfer,” Roberts said. “Ask all those questions up front before you make your decision and tell your school.”
What happens to my loans?
As long as you’re enrolled somewhere for at least half-time status, your student loans will stay in deferment.
If you want to take a leave of absence for a semester to see how things go in the fall, make sure to talk to your school about how your leave will be communicated to your student loan servicer. Taking a semester off or enrolling below part-time status will start the clock on your six-month grace period for your student loans.
If you go back after one semester, you won’t hit that six-month mark. “If you return to college before the grace period expires, the grace period gets reset. This is why loans don’t go into repayment during the summer break,” Kantrowitz explained.
But if you decide to take off in the spring, too, you may have to start paying back your loans. Roberts said that most private lenders allow for an extension on that grace period, but you won’t catch a break on your federal loans unless you put them in forbearance. If you’ve used up your grace period, you lose it, even if your loans go back into deferment when you re-enroll.
I’m not even in college yet. What do I need to know?
Just like you’d talk with your family and trusted advisors about your college options during “normal” times, you’ll still do that during the ongoing pandemic. It’s natural to have your guard up a little bit, but don’t be afraid to get a gut check about your options from someone outside your family if you’re just not sure what your best option is.
“College and career professionals are on top of their game, and have created resources tracking things like virtual college tours and shifting tuition deadlines,” Brennan said.
She said that options like state schools, community colleges and for-profit colleges are likely to see an increase in popularity, but that means students and families need to do their due diligence when researching options—and seek guidance from counselors and other professionals.
For students who are considering delaying going to school until the pandemic is “over,” it’s important to make a plan for reentry. “We know from research that when students push ‘pause’ on their academic progression, this increases the likelihood that they never restart,” Brennan warned.
“A lot of questions have not changed,” Roberts said. “Where to go to school, how much to pay for school, the return on investment for what you’re looking to study.” There are just added layers now during and after the pandemic.
