@mom2collegekids. I see what you are saying. I was not counting the Stafford loans which would likely be part of the aid package at most schools. At 70-80K undergrad debt, the gap year to get the merit money may be the better option, but I’m not as sure as you are exactly where the point of indifference is. I would still probably borrow the money, but I’m less risk averse than you.
I hope Vandy can work out for the OP.
See what schools actually offer before electing the gap year.
As I’ve said, I have several engineers working for me with that kind of undergraduate debt and they seem to be leading pretty happy lives and are not drowning in debt. Of course, that’s about their annual salary, but living indoors in Boston is pretty expensive.