Key takeaways:
- Accepted early decision students are expected to attend the college and will only receive a single financial aid offer letter.
- Early action is non-binding and a decision is needed until May 1, giving accepted students time to compare acceptance and financial aid awards.
- If you were accepted under early decision but didn’t receive enough aid to attend, you can appeal the offer, seek other aid sources, or withdraw from the school.
Source: Flickr user nowhere77.
How you apply to a college can affect your financial aid award letters and financial future. Early decision applicants show they’re very interested in a school but if they’re accepted, they will only receive a single financial aid offer – and it may come too late to apply to other schools if it’s not enough. Early action gives you the opportunity to showcase interest and compare award offers. In this article, we provide some insight to help you decide whether you should apply under early decision or early action when financial aid matters.
Understand the different admissions cycles: early decision vs. early action
Before diving further, let’s review the different college application options.
- Early decision: Binding, if you apply under early decision and are accepted, you’re expected to withdraw all other applications, submit your deposit, and attend the college the following fall. While you can technically back out for any reason, you could face consequences if it’s not an acceptable one. Applications are typically due in early to mid-November, and students hear back in December. You can only apply to one early decision college.
- Early action: Early action is non-binding, but students can apply early (often early to mid-November) and receive a response faster (usually December). Students don’t have to decide whether to attend until May 1, College Decision Day. You can apply to as many schools as you’d like.
- Restrictive early action: Similar to early action, restrictive early action means you can only apply to a single early action/early decision school. You can apply to more colleges through regular decision or rolling admission.
- Early decision and early action II: Some colleges offer second rounds of early decision and early action in January, with acceptance letters arriving in February.
- Regular decision: Most students apply under regular decision. Applications are typically due January 1, students receive acceptance and rejection letters in early to mid-spring, and schools need a decision from accepted students by May 1.
- Rolling admission: Colleges who offer rolling admission accept applications year round or until spots fill up. Many have priority deadlines that can increase acceptance chances or financial aid offers.
Should you apply under early decision or early action when financial aid matters?
Whether you should apply under early decision or early action when financial aid matters depends on the school and your financial situation. Here are some scenarios to keep in mind.
Early decision and financial aid
In most cases, acceptance under early decision is binding. If you’re accepted, you’re expected to attend – except in certain situations, such as not receiving enough financial aid to attend.
However, while you could back out of the school if you don’t receive a favorable offer, it might not be in your best interest to still apply through early decision.
The main point of consideration is the fact you won’t be able to compare financial aid packages. Your early decision offer may be large enough that you can cover the remaining portion with savings, but another college may have offered you more or had a lower cost of attendance, meaning you wouldn’t have used as much as your savings.
Early decision financial aid offer letters also don’t always come with the acceptance letter in December. You might not receive an award letter until mid-spring. At that point, it’s too late to apply to many top schools, as application deadlines have come and gone.
However, there are ways to tell how much money you may receive from a school’s financial aid package before you even start your application. College net price calculators and College Match can give you some insight into the sticker price vs. what you’ll likely be expected to pay (net price), based on previous award offers to students in similar financial situations. While they’re estimations, this information can help you make your decision on whether it’s worth it to apply to an early decision school.
Early action and financial aid
There is no downside to applying to a college under early action when financial aid matters. Since it’s non-binding, you’re welcome to apply to other colleges under early action and regular decision (unless you used restrictive early action). You likely won’t receive an award letter until the spring, but you don’t have to make a final decision until May 1, giving you plenty of time to compare offers,
In addition, some schools have priority scholarship deadlines, usually in line with early action and early decision due dates. Applying early could actually net you a larger financial aid package!
What if you were accepted under early decision and you can’t afford it?
If you applied under early decision and found you weren’t offered a large enough financial aid package, you may have options.
- Ask for more money. You can appeal to the financial aid department to ask for more money. Review the appeal process online, gather relevant information regarding your finances, and politely make the request.
- Take out student loans. Private student loans can cover the gap between what you have and what you need. However, they tend to have higher interest rates and less repayment and protection options than federal student loans. You should exhaust federal student loans first.
- Apply for scholarships. Use scholarship databases to find awards you qualify for from businesses, nonprofits, individuals, and more.
If you still don’t have enough money to cover the cost of attendance at your early decision school, let them know as soon as possible. They will advise you of the next steps and release you from the agreement if necessary. Start applying to other colleges right away.
Tips for getting more financial aid under early decision or early action
Here are a few ways you can increase your chances of receiving the money you need to attend your dream school.
- Complete the Free Application for Federal Student Aid (FAFSA). Submit your FAFSA on October 1 or shortly after each year. Delaying too long can cause you to miss out on time-sensitive aid, such as the Pell Grant, state grants, or institutional scholarships.
- Submit the CSS Profile if needed. Some schools require the CSS Profile. Complete yours as soon as possible to increase your chances of financial aid.
- Know your college’s financial aid deadlines. Take note of your schools’ FAFSA deadlines and any priority scholarship due dates. If the college sends offer letters with early decision letters, you’ll need the FAFSA in quickly.
- Compare your award letters. Financial aid offer letters have varying formats. With different attendance costs, comparing them can be difficult. Review how much a school’s sticker price, how much in loans you’d need, debt after graduation, and more to find the best deal. College Raptor’s Financial Aid Offer Comparison tool can help.
- Appeal the offer. Many colleges allow you to negotiate a higher financial aid package.
- Apply for outside scholarships and grants. Use scholarship databases to find outside awards, and review your state’s college grants application requirements. While many states consider you for their awards once you apply to a public school, some require separate applications or information.
If you need financial aid to attend a school, you need to consider how much you’re likely to receive should you be accepted to the college. Even then, you need a backup plan, especially if you’re applying under early decision. College Raptor’s College Match lets you take a sneak peak at your estimated net price, how it compares to the sticker price, expected debt at graduation, and more. It’s completely free!
