Early decision applicants enjoy better admissions odds at their first-choice colleges.
Schools offering early decision accepted 62 percent of early decision applicants versus 52 percent of regular decision applicants in fall 2012, according to an annual report from the National Association for College Admission Counseling.
But it’s another story when it comes to scoring the most financial aid.
Early decision is a binding agreement that trades a better chance of receiving a figurative fat envelope from a school with the guarantee that the student will enroll if admitted.
And that means accepting the school’s financial aid award, even if a better offer might have materialized from another university.
“If a family is really worried about finances, I’d tell them to hold off and apply regular decision,” says Kathleen Brown, director of financial aid at Saint Mary’s College in Indiana .
[Discover 10 colleges where early applicants have the advantage.]
When it comes to weighing better admissions chances versus financial aid awards, the trade-off may be more beneficial for some students than others.
Here’s what to know about early decision and financial aid.
1. Families can decline admission, on one condition. In general, early decision is binding and a student is required to accept the offer of admission. But there is one exception. That’s if the aid award offered by a school isn’t enough to make the cost affordable.
This isn’t common. Of admitted students, 82 percent accept ed their early decision offer during the fall 2012 admissions cycle, according to the NACAC report.
And experts point to it only as a last resort. Students who choose not to enroll may find that they have to scramble for — or have already missed — the regular decision deadlines at other schools.
“If a family is concerned about financial aid or having enough money to pay for college, then early decision has to be approached pretty carefully,” says Katharine Ruby, senior manager of college finances with College Coach, which advises students on the college admissions and finance process.
[Consider applying early action for college.]
If a family feels that the award has been calculated incorrectly or that there’s a disconnect between what they expected to pay and the award letter they received, a follow-up with the financial aid office can help straighten things out, says Elizabeth Pleshette, director of college counseling at Latin School of Chicago, a private high school.
2. The type of aid makes a difference. Some kinds of families should hesitate before applying early decision, say experts.
Middle-class and upper-middle-class families banking on merit aid to float tuition should approach early decision gingerly. It’s not impossible to get merit aid as an early decision applicant, says Pleshette. But families lose the ability to compare aid packages across multiple schools and different kinds of schools.
“If a family has a need to compare financial aid awards, early decision is not always a great option for them,” says Ruby.
Low-income students who can count on substantial need-based aid, on the other hand, likely won’t see early decision affect how their demonstrated need is met, says Pleshette.
Early decision won’t have an effect on outside scholarship eligibility, says Pleshette. But it can take away the opportunity to find out whether you would have qualified for institutional scholarships at other schools.
3. Families are not flying blind. Students can get an estimate of what kind of aid the college will award them with online net price calculators.
Ruby suggests adding an estimated family contribution calculator into the mix as well, such as the one on the College Board site.
These tools can give families a sense of their expected family contribution and what kinds of aid might be available. But be aware that the net price estimate isn’t carved in stone. “You want to be comfortable with a range around what the net price calculator says,” Ruby says.
4. Students should be certain. One thing that strains a family’s finances more than a lean financial aid package: delaying graduation or dropping out of college.
[Make the call to apply early decision.]
Students should be absolutely positive that they’re applying early decision to a school that they want to attend, say experts. And they should be aware that early decision won’t launch them from a definite “no” in the eyes of the admissions office to a definite “yes.” They have to demonstrate the academic chops and strong application to earn admission.
Wishy-washy students or those who regret their decisions easily need not apply early decision, says Pleshette.
“It comes down to your psychological state,” she says. “The kids that benefit are the ones that make easy and fast decisions and don’t regret their choices. They have the self possession to know what they want and self awareness to know whether they fit a school’s profile or not.”
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.
More from U.S. News
7 Questions College Financial Aid Officers Wish Parents Would Ask
Infographic: Paying for College
4 Financial Aid Facts Students Should Know Before Applying Early Decision originally appeared on usnews.com