<p>If your child so loves the school that you as parents, and as a family are willing to do nearly anything to pay the tuition, then it is a fine way to go. But if you know that you have a set amount that you can pay, and to pay more is jeopardizing the rest of the family, and there is really no negotiating that amount, it is not advisable to apply ED. There are thousands of situations where parents whose income puts them beyond need base aid, simply cannot or will not pay what federal or college methodology considers their fair share. Also if your child is thinking about medical, law or other further education, a loan may not be the way you want to go. My niece has borrowed $160K for medical school, Thank goodness she does not have undergraduate school debts. Also if the families have some shakey situations with bad credit, a marriage that is in question, some major expenses, it may not be a good investment to put the money into a private college tuition. One young lady I worked with last year turned down Northwestern for a very nice scholarship at Vanderbilt. Her parents did not qualify for any aid, but they were willing to take out a bundle in PLUS loans to pay for her college. Her first choice school was Duke where she applied ED and was deferred, then rejected. NW was a second choice and she was accepted there, she loved the school but with two siblings in private highschool, more college coming up, and Dad's company not doing so well so that bonuses were meager this year, the offer from Vanderbilt looked mighty nice. She flew out there, and decided that that she was as happy there, and I saw the mom over the holidays who says they are barely making it even with half the cost that they were committed to pay. They were unhappy about the Duke deferral and rejection at the time, but the girl could not be happier, and to be paying an additional $20K a year or borrowing a portion of that is unimaginable as they struggle to make that second semester tuition payment. My feeling is that it is that second year, and that second child that is really tough. You are psyched and ready to do anything for that first child, first payment, but then you are living the parsiminous life when you reach that second year or second kid, and you realize that it is more difficult than planned. You cannot compare packages when you accept ED, and though things like a half tuition paid or a third of a tuition scholarship sound great, the reality of paying the remainder and taking out loans can be very painful. I know several kids whose parents are struggling to pay this second semester and are considering having their kid take off a year and work as they cannot fathom coughing up still another term's tuition in a couple of months or their child cannot register for the fall. All of us, even though we are adults are not always so realistic about these relentless payments that have to be made. I know, because I lived it, and it can be very painful. The universities tend to be heartless--no tickee, no laundry, and your kid cannot even register for a class if the bills are not current, and he can get blocked out of a course registering late. </p>
<p>EA is not a problem. You have until May to make a decision and you can compare financial offers. Some parents may find that though they are willing to pay $200K for HPY & Co, they are not so sure that they want to make that commitment for Sarah Lawrence or Skidmore, though they are fine schools. Especially if Bard is offering a half ride and there are some $10K sweetners at some other schools. THe state schools start looking awfully good too. My son could have gone free to our state school, something we did not find out until at the end of the process. One of the grants was usable only within the state which made those schools mighty attractive. THose options would never have entered our radar screen had he applied ED. I have one kid here who is planning to go to GW which is terribly expensive. He is ecstatic, but the aid package was not what the parents expected. They are terribly worried. And the danged thing is, I'd bet money that he would have gotten a nice offer from American, merit wise that would have really made things easier for the family. Or BU might have come through with some merit aid. None of this is of any issue since he has committed ED to GW a decision the family made with good intentions and determination to pay whatever it takes. Well, the cost is $50K this first year, and the aid package is about $10 with half in loans. I think the family was thinking the total cost was going to be $40K and that they would get maybe $10 in grants and borrow $10. They are going to DC to talk to the financial aid people there, but at the height of the admissions rush, and because there is no mistake or anything left out, I doubt if they get more than loans and maybe $1000 more in grants, if they are convincing. All I can say is that the kids should start a job ASAP, but the reality still has not set in. He is planning a summer abroad, spring break on the beach, a great senior year and graduate summer. And the parents are loathe to break the news that coming up with next year's tuition even with low interest loans is going to rock the family finances. </p>
<p>I know another family whose son is up for a major award at Tulane. They were luke warm on the school at first, but as they mull over the BC costs--and he is only guaranteed 3 years of housing, they qualify only for loans there, and the cost for both schools is nearly identical except for that big scholarship which is all free money, well, New Orleans is not looking so bad. Especially with some kids he knows who are going there. He is planning a visit down there, and a school that was just thrown into the mix as a safety has become a major consideration. He was deferred from his first choice ED school, and the may still be in the picture, but that $50K per year payment is beginning to loom darkly into the family picture. What is this family going to have to sacrifice, spend, and borrow to pay that amount for the next 4 years? Really more since they have 2 more kids and one is definitely not going to get merit money, and may not get into State U. He looks like small private school material to me and he is coming up in a couple of years. </p>
<p>So, no, it is not a death trap. I know families who have long made the commitment and are prepared to do so even if financial aid does not pan out. Many have only one child or maybe two, and they are willing to gear up and pay what they have to pay if financial aid or merit money does not come out the way they hope. But there are a bunch of people out there who are blithely telling themselves that it will a work out, and are sure that their bright child will get money for college, and noone is going to think that they can pull the college costs out of the hat at their income and their meagre assets. Some of them will be outraged and shocked at their EFC, and do not know that many top school do not give merit aid. Where does that leave things if they apply early decision and are now looking at a $200K bill? It's really a matter of awareness and realistic expectations and a willingness to sacrifice a lot when your child applies ED, and you are hoping for a generous financial aid package. Sometimes it is not forthcoming.</p>