A crazy ED idea for fin-aid

Paying for College
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<p>If I had my way as far as running a college with an ED plan is concerned, rather than fleecing Early Decision hopefuls’ money, I’d guarantee a minimum 50% COA (understood here as tuition+fees+room+board, as billed by a college) discount for four years to a student admitted under ED; additional grants and loans, if any, would still be doable, contingent on the applicant’s financial situation.</p>

<p>But that guarantee becomes void if the ED applicant is deferred or outright rejected. What effect would it have on a college’s ED applicant pool?</p>

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<p>Would never happen as there is a stronger contingent of full pay students in the ED round because they do NOT need to take financial aid into consideration. Why would any business give up that 50% simply to get people they will already get (since ED implies it is the students #1 choice.)</p>

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<p>OP, what is your point with this thread?</p>

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<p>I asked for whether it would cause a change in the financial makeup of the ED pool.</p>

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<p>You would see an even bigger ED pool as well - anyone full pay who has that school in their top 5 list would likely consider it a good deal, apply ED even though it’s not the first choice (assuming the others don’t offer 50% COA guarantee).</p>

<p>At the other end, it is of no help to students with significant need, because they still have no idea how to pay the other 50%.</p>

<p>In order to make it affordable, the response would have to be to only offer early acceptances to those eligible under a need-based formula anyway, or to limit ED acceptance to those who would otherwise be eligible for such funding on the basis of merit.</p>

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<p>As I said, deferral under that ED plan would mean that the 50% minimum discount warranty is voided - then deferring the ones that would not need 50% minimum need covered could make financial sense. They still might get in otherwise, though.</p>

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<p>What is the benefit to the colleges? - remember there is nothing ‘mystical’ about higher education. It’s first and foremost a business. So what is the point of speculating about something that would be a “bad” business decision?</p>

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<p>Would it be more feasible for a public school then?</p>

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<p>Many publics do not guarantee to meet need for 100% of an incoming class… so again, it’s highly unlucky they would commit themselves to giving a segment of an entering class an automatic 50% discount. There are not even many publics with ED and I can’t even think of any off the top of my head…most have EA or are rolling.</p>

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<p>There might be more publics with ED than VA Tech but, as far as I know, VA Tech is the best public with ED.</p>

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<p>So again, what would be the business or strategic benefit to any college to institute such a policy?</p>

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<p>Would we see an increase in selectivity?</p>

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<p>I don’t think you would see a change at all…because there is no financial gain and actually a potential loss for the colleges.</p>

<p>VA tech does not meet full need of all accepted students. There isn’t enough money to support your idea. The notion that it, or any other school, would lose 50% income for a food chunk of ED applicants is ridiculous. Yes, I know some are eligible for aid…but I’m sure you know what I mean.</p>

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<p>Increasing selectivity would only make sense if the tuition revenue stream could be maintained as a minimum criteria. Otherwise selectivity as a lone criteria is not as relevant.</p>

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<p>Catria, what’s really going on?<br>
As we sometimes ask, what’s your dog in this race?<br>
School’s that can’t afford to offer much aid to too many kids won’t be able to meet this plan. Schools that have more resources don’t see guaranteed aid for applying as the sort of enticement they need. It doesn’t make sense. </p>

<p>In the end, a kid who needs high aid is not wise to limit his apps to ED to one school that guarantees 50%. It’s so incomplete-- he still has to hope and pray the remainder of the aid pkg adds up to a doable number. </p>

<p>If you think the point is to get more kids committing through ED, my question is: how much do you know about admissions, in the first place???</p>

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<p>^^If colleges wanted to cut their application cycle shorter and lock in students they would simply shorten the application cycle.</p>

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<p>That makes no sense for the school, which is looking to lock in some full-pays via ED. The school wouldn’t be able to afford to admit full-pays under this kind of guarantee, so no full-pay students would apply there ED.</p>

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<p>I don’t think it would have a huge effect on the ED application pool. I think most applicants for ED are already decided that they wouldn’t want to go anywhere else if they got into the ED program even if it wasn’t binding. Most students would not risk having to go to a school they don’t like for money if there is a chance that they could get the same scholarship or better if they waited and applied to their first or second choice schools.</p>

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<p>I think it might cause some schools to become “need aware” and then they’d defer many full payers to RD. ;)</p>