So, early decision: you apply to a college early, and their acceptance is said to be binding. My question is, how do they make it binding? What leverage do they have over you, other than keeping your deposit?
Inquiring parental minds want to know. (And if the College Board were somehow involved, I would not be the least bit surprised.)
Early decision typically involves a binding contract. Early action usually doesn't. The leverage they have over you in the former case are mostly the following:
1. You lose your deposit/fees/etc.
2. No other competitive school will accept you.
3. Technically, they would screw up your financial aid, or (very unlikely) sue you for damages.
Number 2 is the real issue you have to worry about as admissions is a fairly small community, and there are ways to tell where a student has applied to. Many colleges exchange early admit lists for this reason. There is also the issue that many applications will ask you if you have been admitted elsewhere via ED, and if you lie on subsequent applications, it gives them an out to rescind your admission.
More importantly, if you don't go there is a good chance the college will punish your high school and the GC in the future. You will be making it harder for others from your school in the future. Your high school will actively discourage you from doing this as they will (by necessity) be aware of all of these things as they will need to send transcripts, etc.
Typically, the most common way out is that you (legitimately) claim financial hardship due to an insufficient aid package. Nowadays, they will often let you out if you call and sincerely express your apologies and reason why you can't/won't go. Most schools don't want students who don't want to be there. That said, I would not recommend backing out of such as agreement as it is wholly unfair to many people involved in the process. That said, very little is likely to happen to you personally if you do. YMMV, etc., etc.
