<p>What thumper concluded would be my opinion, too.</p>
<p>I've spent the last hour reading ED contracts of several colleges. None indicate an ED applicant must attend. But all have some variation of the following:</p>
<p>"Applications admitted under the Early Decision Plan are committed to attend the University and are required to withdraw applications filed with other colleges or universities."</p>
<p>Sounds unambiguous to me, but what do I know?</p>
<p>I think the OP needs to realize that even in schools that say they meet "100 percent of need," part of that could be in the form of loans. I personally don't consider loans to be financial aid, but that's the way it is. And the loans could be substantial over four years. If the OP isn't comfortable with the possibility of having to borrow part of the COA, changing the application to RD would be a wise move.</p>
<p>Northwestern</a> to Replace Student Loans with Grants for Neediest Students</p>
<p>I was an international student ineligible for any FA, so I am not familiar with the lingo and different types of loans. Is this article saying loans won't be over $20,000 over 4 years for any student?</p>
<p>Northwestern's inititative is definitely is a step in the right direction, but it may not be as far reaching as it seems. For instance:</p>
<p>
[quote]
In addition, all undergraduate financial aid recipients who take out subsidized Stafford or Perkins loans, the two major federal need-based loan programs, will have those loans capped at no more than $20,000 over four years.
[/quote]
</p>
<p>So that means that unsubsidized loans won't be capped. At least, that's the way I'm reading it.</p>
<p>
[quote]
The University expects that the no-loan and loan cap programs will benefit more than 1,400 of its 8,000 undergraduate students.
[/quote]
</p>
<p>A help to many, of course, but not the majority of Northwestern students, by far.</p>
<p>Which one is usually the more significant portion? Subsidized or unsubsidized loan? If subsidized loans are capped, then anyone would rather have more of that and have anything else above the cap replaced by grants (from NU?). So I am wondering who determines who gets how much in each? Is there some sort of randomness in it?</p>
<p>NU's FA used to be average relative to other peers but it has gotten worse in recent years as other non-Ivies and even schools with less endowment have come up with more generous programs. The yield in the last 2-3 years has been the lowest in school history. Enrollement of black students has hit an all-time low this year and stingy FA was cited as the major reason.</p>
<p>While subsidized loans are better than unsubsidized (because the princiipal doesn't grow while you're in school & meeting conditions), it still is a loan which affects your choices down the road. Graduating with a mountain of debt is a crushing burden and limits your choices in purchasing a home or other things, as well as chosing a job you love vs. ones that will help you pay off your debt.</p>
<p>Lurkness, unsub loans are not technically need based. NU will offer grants rather than need based loans for the neediest students. These students will still be able to take out unsubsidized loans ... which are NOT based on need ... as long as the total aid, including the unsub loans, does not exceed the cost of attendance. For very low EFC students, there is no EFC to replace. In effect, the student's entire cost of attendance will be covered by grants.</p>
<p>For students at NU with higher EFCs, the amount of need based loans will be capped. That means that the calculated need will be covered by grants in order to keep the need based loans to a capped amount. Unsub loans will still be available to those students ... basically, they will be able to use them to help pay the EFC (as long as all aid does not exceed the COA). The unsub loan is effectively a bonus ... if the family can't pay the $20,000 NU figures they can pay, the kid can borrow some unsub loan (subject to year in school maximums and COA cap) to help pay it. The parent PLUS loan would be available to finance the rest of the EFC.</p>
<p>Post #25 from dstark: "So students from well-off families get to apply early, but poor people don't.....Hmmmm."</p>
<p>(1) Any student (not just well-off) may apply ED, but that student must realize the BINDING nature of the agreement, regardless of the financial outcome.</p>
<p>(2) Well-off families get to buy BMWs, well-off families get to have a summer house in Tuscany, and well-off families can join the country club. It doesn't start when the student goes to college, and it certainly doesn't end there.</p>
<p>"(1) Any student (not just well-off) may apply ED, but that student must realize the BINDING nature of the agreement, regardless of the financial outcome."</p>
<p>This is false. Where does this stuff come from?</p>
<p>dstark,</p>
<p>You are right that ED favors wealthier students (because fin aid is not an issue, and they can choose their favorite U without regard for fin aid). That is the most common objection for ED in principle. That is why some Us (the ones that can "afford" it) go to SCEA, etc.</p>
<p>However, if your first choice schools offers ED or RD, and your decision depends on FA, you should not apply ED. If you don't like it, choose a different school that offers a non-binding option.</p>
<p>dstark, you're correct in that if an applicant renegs on a ED application, she's not going to jail and her assets aren't going to be seized. But that doesn't mean there are no consequences. Colleges can and do circulate the names of their ED applicants to other colleges, and admissions officers are often friends. </p>
<p>It is very likely that a student who applies to other schools in violation of an ED agreement will be rejected at those other schools, simply because he violated the agreement.</p>
<p>"This is false. Where does this stuff come from?"</p>
<p>Yeah, I'm just plucking it out of thin air.</p>
<p>You're saying that you must be wealthy to apply ED? Sorry, I don't get it. There is no income tax & assets documentation submission requirement before you check off the "ED" box. The college has no idea if you're wealthy or poor when you check off that box, unless you tell them, and that is not a requirement.</p>
<p>Wealthy or poor, you may apply ED. ED is also binding in that if you are accepted ED, you must rescind all other applications.</p>
<p>You may extrapolate whatever you wish about ED, but the facts remain: (1) you don't need to be wealthy to apply ED, and (2) and ED acceptance is binding.</p>
<p>What else is ED for, in your eyes?</p>