Parents to High School Grads: Hit the Beach, College Can Wait

Talk to any parent or school administrator, and you’ll realize that most wouldn’t advocate high school graduates deferring college for a year and doing something else. That’s because, once kids start working, it can be hard to give up a regular paycheck to become a poor student again. Plus, long-term goals of a chosen career have a way of fading from view when kids have a chance to put their work and money toward a shiny new car or other more immediate short-term goals.

President Obama has proposed huge changes in federal college aid programs that will increase grants to poor students and provide more fixed rate student loans; if Congress approves them, they’ll take effect ⎯ in July 2010.

High schoolers graduating this spring could benefit by postponing college for a year, for several reasons, says the New York Times:

1. To make things easier on mom and dad by taking advantage of enhanced student loan programs in the fall of 2010, especially if the graduate has other college-bound siblings.
2. To ease the pressure on budget-challenged parents by riding out what could arguably be the most painful part of the recession without having to worry about added college expenses. Many economists predict the economy will improve, slowly, in 2010. Families that have experienced job loss and/or a dwindling 529 college savings plan balance, or even families that are just feeling squeezed, might want to defer a major new expense. In addition, they’ll gain more time to replenish their 529 investments or, in the best-case scenario, watch them recover some of their losses.

Of course, we have no crystal ball here at CreditFYI, and neither does the New York Times. It’s also possible that the stock market will worsen, not improve, during the next year, and that unemployment will continue to rise. What’s more, if high school grads opt to postpone college, it’s going to be rough finding a job that pays well. (Employers anticipate hiring 22% fewer graduates than they did last spring.) And let’s not forget that President Obama’s proposal to increase student aid hasn’t yet passed through Congress.

Still, delaying the start of college in that so-called “gap year” between high school and college bears consideration. If the year in between is spent productively, it could produce worthwhile life experiences.

What say you? How would you react if your son or daughter announced they wanted to postpone college for a year? Would it depend on how they spent their time?

Tags: before college, pay for college, take a year off before college, year off before college

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