Applying early improves odds of getting in, but reduces your financial aid packages.
Applying early admission improves your chances of getting admitted to highly selective colleges IF you have a competitive application. That means that your GPA and SAT/ACT scores are stellar, and you have something interesting or unique to bring to the freshman class (a project!). This year, top colleges saw a significant increase in early applications (Early Decision and Early Action), and they admitted more students from this pool than regular admissions.
Students who can afford to apply Early Decision because their parents don’t need to consider financial aid, have a big advantage over students who need to compare financial aid packages from several colleges. Almost 30% of students who applied Early Decision (this is binding, which means you have to attend) last year have family incomes of more than $250,000 per year, compared to just 16% of students with families who make less than $50,000. This significantly changes the demographics of the incoming class.