The Early Decision Lawsuit: What It Means for Students Applying This Fall

By now, you may have seen the headlines. A group of top U.S. colleges is being sued over how they run their Early Decision (ED) programs. As a tutor or advisor helping students prepare for fall applications, you’re probably wondering if you should be advising your clients not to apply ED to their choice schools. 

Let me help you unpack what this Early Decision lawsuit really entails, if it changes how your clients apply ED, and what families need to know before committing to ED.

What's the Lawsuit About?

On August 8th, a federal class-action lawsuit was filed against 32 top colleges — including names like Brown, Northwestern, and the University of Chicago — along with the Common App and Scoir.

The accusation? These schools and platforms colluded to restrict competition by agreeing not to recruit students who had already applied ED elsewhere. This agreement, the lawsuit argues, helps colleges lock students in early, prevents families from comparing financial aid offers, and keeps costs high.

The lawsuit also claims that these schools shared ED admit lists with each other — creating an environment where the “binding” nature of ED became more like a closed market than a student-first process.

What Does This Mean for Fall 2025 Applicants?

Let me be clear: Early Decision is still legal and the rules haven’t changed — yet.

But this lawsuit pulls back the curtain on something many of us have known for a long time: ED doesn’t always work in the best interest of students. In particular, Early Decision:

  • Limits the ability to compare financial aid packages, because students are committing before they can shop around.

  • Adds pressure to decide early — often before a student is emotionally or financially ready.

  • Makes it very difficult for students to back out, even though ED agreements are technically not legally binding.

Now, that said, it doesn’t mean ED is never the right move. But students and families need to walk in with their eyes open to these realities.

A Better Way to Approach Early Decision in Light of the Lawsuit

This lawsuit highlights the importance of how we talk about and promote Early Decision. If a student is considering applying ED this fall, these are the questions I’d want them (and their parents) to answer first:

1. Have we run a Net Price Calculator for this school?

Most colleges offer a Net Price Calculator on their website that estimates the financial aid offer. Advise your clients to use it — before they commit to applying ED. If the sum makes their stomach drop, that’s a sign to keep options open.

2. Are we emotionally and financially ready to commit?

ED should only be used for a true first-choice school — one that’s a great academic, social, and financial fit. If there’s any hesitation, wait.

3. Do we understand what “binding” really means?

No, students and families won’t get sued for backing out of ED. But they may face consequences — like losing their spot, burning bridges with admissions offices, or limiting their options elsewhere. Unfortunately, the pressure that comes with ED is real.

4. Do we need to compare aid offers to make an informed decision?

YES! If finances are a significant factor — and let’s be honest, they are for most families — Regular Decision or Early Action might be better options. These alternatives to ED provide more time and flexibility to compare packages and make a well-informed choice.

What You Can Do Right Now

Here’s how you can support your clients this fall:

  • Facilitate honest conversations about the risks and benefits of ED — especially around cost.

  • Help families read the fine print on ED agreements and application platforms.

  • Encourage early FAFSA completion and Net Price Calculator use.

  • Stay alert to any changes to ED policies or timelines as this lawsuit moves forward.

And above all: Let your clients know that it’s okay to slow down. There’s no prize for committing early if it’s the wrong fit.

The Bottom Line: This lawsuit doesn’t mean students shouldn’t apply Early Decision. But it does mean they should do so strategically, not reflexively. ED isn’t a golden ticket — it’s a binding commitment that may become less common or more regulated in light of this lawsuit.

Until then, the focus should be on transparency, financial literacy, and academic fit — not just timelines and acceptance rates.

 

Ready to see how Clear Choice Prep’s tools and support can supercharge your test prep—and your bottom line? Schedule a quick, free demo today and let’s get your fall programs fully booked!

Let's Talk Fall Test Prep