Early action vs early decision: What's the difference?

As I start planning my college applications, I'm trying to get a clear understanding of early action and early decision. I know they both have earlier deadlines, but what are the real differences between them in terms of commitment and strategy? I'm thinking about applying to a few schools that offer both options and could use some advice on which one might be better for my situation. Do either of these options improve my chances of getting accepted, and how do they affect financial aid packages?

Early Action (EA) and Early Decision (ED) are two options that allow you to send your applications earlier than the regular decision deadline. Here's how they differ:

Early Action allows you to apply early (typically in November) and receive your decision earlier (usually by January). However, it is non-binding; this means you are not obligated to attend the school if you're accepted. You can apply to multiple schools Early Action and wait until the usual May 1st deadline to make your decision. This can be a good choice if you want to wrap up the admission process early but still want to compare financial aid packages and mull over your options.

Early Decision, on the other hand, is a binding agreement. If you apply ED and get accepted, you are expected to enroll at that college and withdraw all your other applications. Therefore, you should only apply ED if the college is your clear first choice, and you are confident you would attend if admitted. You can typically only apply to one school Early Decision, but you can apply to others under regular or rolling admissions.

In terms of admission chance, both EA and ED could potentially boost your odds of acceptance. For highly selective schools, the difference can be substantial, particularly with ED. On average, applying ED results in a 1.6x or a 60% increase in your chances of admission to super selective schools. The benefit becomes less pronounced the less selective the school is. Applying Early Action also boosts your chances but the effect is smaller since you’re not obligated to attend if accepted, so there are no yield benefits for the college. These are just averages though - the actual impact can vary school to school.

Finally, as for financial aid, ED can be a bit more complicated. Because it is binding, you are committing to the school before you have a chance to compare financial aid packages from other schools. Therefore, before applying ED, it's wise to use the college's net price calculator to get an estimate of what your aid package might look like. This can help ensure that you only apply early decision to a school that is a feasible financial choice. In contrast, with EA, you have more flexibility to compare financial aid offers because it is not binding.

Remember to carefully consider your college preferences, acceptance goals, and financial situation before choosing between Early Action and Early Decision.