Early Decision (ED)- If you apply to a school Early decision, you are indicating that this school is your top choice, and if you get in, you will definitely be going there. You can only apply Early decision to one school. You can still apply regular admission to other schools if you apply Early decision somewhere, but if the ED school accepts you, you have to withdraw all of your other applications. Applying Early decision requires that you submit your application earlier than if you apply regular admission, usually around November 1st. You should hear from the college about a month later. If you apply Early decision, you will receive your Financial Aid package along with your acceptance letter.
Early Action (EA)- Applying to a school Early action requires that you submit your application earlier than if you apply regular admission, usually around November 1st. The school will give you an admission decision earlier than if you apply regular decision, quite often before winter break. Unlike ED, you don't have to tell the EA school whether you are going there until May 1st, the same as the schools you apply regular admission to! So you have a lot more time to decide whether or not you are going to go to that school. You can apply Early action to as many schools as you want. If you apply somewhere Early action, you will not receive your Financial Aid package until sometime around April 1st.
Restrictive Early Action-Like Early action, Restrictive EA is non-binding (means you don't have to go there if you get in), but if you apply Restrictive EA to a school, you have to sign a contract saying that you won't apply EA, ED, or Restrictive EA anywhere else. You can still apply regular admission to other schools. You will receive your admission decision early but will not have to respond until May 1st.
For example, here is the link to Stanford University's description of Restricted EA and Regular decision: http://admission.stanford.edu/application/decision_process/index.html
That said, there are some negative aspects to applying Early decision as well. First, many students apply ED to a school so that they have a better chance of getting in, even if it is not their top choice. You are binding yourself to one school and one school only, which is a big decision for someone only 17 years old. If you are not absolutely positive that this is the school you want to spend the next 4 years, you shouldn't risk it. You also have to be prepared for whatever kind of financial aid package they give you. You don't want to end up paying more then you can comfortably afford.
Isabel