Early Decision vs. Regular Decision: A Smart (and Debt-Free) Approach to College Planning
- John-Mark Young
- Oct 17
- 3 min read
This month, let’s talk about how to make wise, informed choices in the college application process—without letting emotions or pressure lead to financial regret. We’ll break down the pros and cons of applying Early Decision, highlight key FAFSA changes, and tackle one of the trickiest financial aid questions. Most importantly, we’ll look at all of it through the lens of financial peace and stewardship.
What Is Early Decision (ED)?
Many colleges offer Early Decision I (ED1) or Early Decision II (ED2). These are binding agreements—if your student gets in, they are committing to attend that school and must withdraw all other applications. It’s not a legal contract, but it’s treated like an honor code.
The key difference between ED1 and ED2 is timing: ED1 applications are due around November, while ED2 deadlines are in January, giving families a little more breathing room.
The Dave Ramsey Perspective on Early Decision
Before you or your student sign up for something binding, let’s stop and apply some common-sense wisdom:
Pros
Slightly Better Acceptance Rates: Some colleges do admit more ED students.
Peace of Mind: Getting an answer early can relieve some stress.
Cons (and Why They Matter Financially)
It Limits Your Options: You can’t compare scholarships or negotiate aid offers when you’ve already committed. That’s like agreeing to buy a car before seeing the price tag.
Pressure and Rushed Choices: ED deadlines come fast, and major financial decisions made under pressure often lead to regret.
Potential Financial Strain: If you commit before knowing the total cost, you risk borrowing to cover the gap—a huge red flag. Remember: student loans are not “good debt.”
One Basket, One Egg: If you’re not accepted, you’ve spent time and energy that could’ve gone into better, non-binding options.
Ramsey-Style Recommendation
If you’re 100% confident the school is affordable without debt—and your family has saved for it—then Early Decision could make sense. Otherwise, go for Early Action or Regular Decision so you can compare aid packages and choose the school that aligns with your budget and your values.
The New FAFSA
The new Free Application for Federal Student Aid (FAFSA) is expected to launch on time, with a few helpful updates:
Family-owned businesses with under 100 employees, family farms, and fishing businesses are now exempt from reporting their net worth on the FAFSA.
The application process is expected to be smoother this year—though waiting a couple of weeks (until mid-October) before submitting is wise to avoid early glitches.
Ramsey Tip:Even if you think you make too much, fill out the FAFSA. You may still qualify for scholarships, work-study, or institutional aid—and it keeps all your options open.
How to Answer “How Much Will You Contribute?” on the CSS Profile
Private colleges using the CSS Profile often ask parents how much they expect to contribute.
Be realistic and honest. Don’t inflate your ability to pay; colleges use this to calculate need-based aid. If you’re unsure, aim for 8–12% of your Adjusted Gross Income (AGI) as a rough starting point—but never commit to more than you can pay in cash or savings.
If your financial situation changes—job loss, medical bills, or other major events—use the “special circumstances” section or write an appeal letter. Always make sure the FAFSA and CSS Profile match to avoid delays.
Why You Should Always Apply for Scholarships and Grants
Even if you’ve worked hard to stay debt-free and save, here’s why it’s smart to apply:
You Might Qualify After All: College prices rise faster than expected, and the formula can surprise you.
It Opens More Doors: Many merit scholarships require a completed FAFSA, even if you don’t qualify for need-based aid.
Colleges Reward Financial Stability: Schools often prefer students who can pay responsibly and graduate on time.
Final Word: Don’t Let College Create Lifelong Debt
College should be a blessing, not a financial burden. Applying Early Decision might sound appealing, but it’s rarely the best financial move unless you know exactly what you’re committing to and can pay for it in cash or with existing scholarships.
Make a plan:
Know what you can afford before applying.
Compare offers.
Say no to loans.
Pick the school that fits your budget, not your ego.
Remember—your child’s future is shaped more by hard work, discipline, and integrity than by the name on a diploma.
