Applying is allowed, but “ethically” a student should withdraw other applications once he/she is admitted ED. In this instance, my gut tells me, the family decided they preferred the state school for a reason and tried to use $$ as an excuse. Again, not in the room, but that is somewhat common from my experience. Truly, the state school part could have also been a private school. The real answer was that they did not withdraw, preferred the other school and tried to back away using a $$ excuse. My point is that using “the money” as a reason is not always smooth - and does get questioned in many instances. If you apply ED, you should plan to go to that school or deal with a lot of stress - much more than the responses in this thread imply…
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