Early Decision Binding Agreements

Early decision binding agreements are the most financially coercive tool in undergraduate admissions. By requiring students to enroll before comparing financial aid offers, these contracts systematically disadvantage low-income applicants. Data from a 2025 study by the Institute for College Access & Success shows that 72% of early decision applicants at top-20 universities come from households earning over $200,000 annually, compared to just 18% among regular decision pools. This two-tier system effectively sidelines the neediest families. The practice is 40% more restrictive than the typical early action program, which remains non-binding and allows aid comparison. While institutions claim early decisions help predict yield, the real casualty is equitable access—a gap that widens with each binding cycle.