After graduating with my bachelor's degree, I took a year off to improve my English, take the GMAT and TOEFL, and teach myself financial modeling. Along the way, I did some volunteer work.
However, since the beginning of my gap year, I have been enrolled in a university, so I am eligible for an internship. Now that I am applying for an internship, a year at university without grades on my resume looks very unattractive. How do I mention the last year on my resume and explain it in an interview?

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This is information for a cover letter, not the resume. I know there's great debate about the value of cover letters, but this is exactly the sort of circumstance in which they are very helpful. You should also be networking with the university recruiters of your target firms so they know your story and can effectively present you to hiring managers.

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Just indicate that you had a year to improve your English. be honest and direct about it and not mince words. that will get you places

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You didn't take a year off to faff around, I would talk up the achievements you made while you took the year off. Explain your decision to take time to improve your English, and the certifications that you got. I agree that your cover letter may be a better place for this.

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Thank you for your advices. I have now written my first cover letter and reviewed it several times. But I would be happy if someone could read it through again so that nothing sounds strange and that I don't come across as arrogant or not confident enough and so on.
These are nuances that I'm sure a native speaker can better assess. All suggestions and comments are welcome. Would forward it via email, LinkedIn, or whatever would suit you.

I'll take a look. Are you able to DM me so I can give you my email address?

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