I do this all the time. All my 30+ graduates took 1 year break between each term. I play the dorm for one term as part of my rotation. I make sure they say "no" to enroll to next term, then I leave to play other houses and will return to the dorm one year later. My students are fine, they just enroll and go on with their next term. The only difference I can imagine is that they will need to reapply for all scholarships - I think they are automatically granted if you say "yes" instead of "no" to enroll immediately. Because it takes a day or so to get accepted for those scholarships, I normally stop by the dorm to make them apply a couple days before I go there to have them reenroll. It works very well for my rotational play, and I make sure to fill up the dorm with actively played students to make it all a bit rational. Most of them will get A+, no problem.