Understanding Early Decision Binding

So I've been hearing about this 'Early Decision' thing a lot, but I don't completely understand it. How is it binding, and what does that mean for someone who applies using this option?

Early Decision (ED) is a college application process in which you apply to a single college early, typically in November, and receive an admissions decision in December. The key aspect of Early Decision is that it's binding, meaning that if you're accepted, you commit to attending that college and withdrawing all other applications you have submitted or planned to submit.

The binding nature of Early Decision arises from an agreement that you, your parents/guardians, and your school counselor sign when you submit an Early Decision application. By signing this agreement, you're committing to attending the college if admitted, unless the financial aid package you're offered is insufficient for your family.

If you're admitted under Early Decision and your financial aid package is sufficient to meet your demonstrated need, you must withdraw all other applications and cease any additional college applications. Failure to abide by the Early Decision agreement can have serious consequences. For instance, other colleges may rescind their offers of admission if they learn you have broken the Early Decision agreement.

However, if the financial aid offered does not meet your family's needs, you may be released from the Early Decision agreement. In such a situation, you would need to communicate with the college's financial aid office and provide documentation of the financial reasons for breaking the agreement.

In summary, Early Decision is binding and commits you to attend the college if you're accepted and the financial aid package meets your needs. This option can be beneficial if you have a clear top-choice school and are confident that it's the right fit for you both academically and financially.