No Deposit to Hold Spot...Affecting Acceptances?

[buckeyegal1129]

I've been told that schools deciding to not make students pay a deposit to hold their spot is a fairly new thing. I've also heard rumors from people that this might be screwing up some schools acceptances. For instance, I know of an applicant who is currently holding onto 6 acceptances so far (and has therefore paid $0) in the hopes of getting a better offer in late January. Does anyone know how accurate this idea is? I didn't know that schools could make you pay to hold a spot because I've only heard at interviews how you only have to make a deposit after April 30 (but I also heard this is not true for every school). I'm just curious/confused so any info would be great!

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[flyingeagle]

I've been told that schools deciding to not make students pay a deposit to hold their spot is a fairly new thing. I've also heard rumors from people that this might be screwing up some schools acceptances. For instance, I know of an applicant who is currently holding onto 6 acceptances so far (and has therefore paid $0) in the hopes of getting a better offer in late January. Does anyone know how accurate this idea is? I didn't know that schools could make you pay to hold a spot because I've only heard at interviews how you only have to make a deposit after April 30 (but I also heard this is not true for every school). I'm just curious/confused so any info would be great!

At any MD school you get the deposit back when you withdraw (as long as it's before the May 1st deadline), so no this will not affect anything.

 

[libertyyne]

I've been told that schools deciding to not make students pay a deposit to hold their spot is a fairly new thing. I've also heard rumors from people that this might be screwing up some schools acceptances. For instance, I know of an applicant who is currently holding onto 6 acceptances so far (and has therefore paid $0) in the hopes of getting a better offer in late January. Does anyone know how accurate this idea is? I didn't know that schools could make you pay to hold a spot because I've only heard at interviews how you only have to make a deposit after April 30 (but I also heard this is not true for every school). I'm just curious/confused so any info would be great!

This is not a new phenomenon, MD deposits were usually in the order of 100 dollars, and completely refundable. People holding multiple acceptances is fairly common occurrence and continues be a common occurrence. Schools for this reason send out more acceptances then they have seats , to mitigate last minute switchers and withdrawals for a better offer. Just the nature of the beast. This shouldn't really impact any candidates any more now then it has in the past.

 

[zurc2014]

University of Iowa Carver. Stressed to us that it's free to hold your seat "so please accept the acceptance to increase odds for a good financial aid package." Everyone accepted will hold that acceptance lol.

 

[Ismet]

At any MD school you get the deposit back when you withdraw (as long as it's before the May 1st deadline), so no this will not affect anything.

When I was applying, Drexel didn't return deposits. Not sure if that's still the case.

 

[aldol16]

At any MD school you get the deposit back when you withdraw (as long as it's before the May 1st deadline), so no this will not affect anything.

Well, for a small subset of people, it may make a difference because of you have multiple acceptances (hence a small subset of people), you have to have extra money on hand to pay the deposit and hence tie down that sum of money for months on end. It's not a good deal because A) you need to have that money up front and B) you don't earn any returns on that money. So if an applicant is fortunate enough to have multiple acceptances, he or she may elect to withdraw from lower-choice schools because he or she simply doesn't have that much money to keep tied down somewhere. Now if those schools switch to no deposit required, they would hold onto their spots. Again, since this applies only to a small subset of applicants, I doubt it'll have a substantial impact on the larger applicant pool.

 

[libertyyne]

Well, for a small subset of people, it may make a difference because of you have multiple acceptances (hence a small subset of people), you have to have extra money on hand to pay the deposit and hence tie down that sum of money for months on end. It's not a good deal because A) you need to have that money up front and B) you don't earn any returns on that money. So if an applicant is fortunate enough to have multiple acceptances, he or she may elect to withdraw from lower-choice schools because he or she simply doesn't have that much money to keep tied down somewhere. Now if those schools switch to no deposit required, they would hold onto their spots. Again, since this applies only to a small subset of applicants, I doubt it'll have a substantial impact on the larger applicant pool.

The cost for the deposit is close to the cost for submitting a secondary.

 

[aldol16]

The cost for the deposit is close to the cost for submitting a secondary.

Consider the fee waiver for secondary applications.

 

[libertyyne]

Consider the fee waiver for secondary applications.

Those candidates probably have waivers for deposits as well.

 

[aldol16]

Those candidates probably have waivers for deposits as well.

Pretty sure there is no such thing as a fee waiver for the deposit. Because you get your money back if you withdraw and if you don't withdraw, you're just putting down a payment on your tuition.

 

[LizzyM]

Schools know that many people holding offers with decline the offer in late April. In fact, they count on that happening. The financial implications for very talented but financially pinched applicants creates a problem for schools and just collecting those deposits, putting them in a safe place and then doing what is necessary to refund the money is a huge headache. It is easier to just go with a no-deposit policy and know that some people will decline. Schools adjust for that by making offers to 2 or 3 applicants for every seat available like massively over-booking a flight.

 

[happyatethem]

I don't think this would ever have a tangible effect on MD acceptances, as those deposits are typically $100. It escalates quickly in the D.O. world however, with deposits approaching $3000 due within 30 days of offer. I had two offers, one was my first and only acceptance, and the other was my ideal choice, and I got lucky that those results came within 20 days of each other. Let's be real, most people in this race have financial support. I would think strong applicants, even those who have severe financial constraints can scrounge 100 dollars. It could be as simple as driving 800 miles and getting a motel instead of flying and uber for an interview. Also, the investment return argument seems a little far-fetched, especially if you're anticipating multiple offers, and more importantly, relying on competition between MD schools to give you a competitive financial aid offer. 10 deposits = 1000. Robinhood let's you daytrade for free but you need a bit of experience and patience, but over 6-8 months anyone can make a 10-150% return (Or lose it, haha me). Even a small incentive relative to MD tuition is significant compared to earnings from traditional investment vehicles (5k less per year= 20-24 k saved depending on payback length and interest). My argument falls apart if you're talking about investing in startup that streamlines a process, improves accessibility to a resource or you know anything that a venture capitalist would jump into. But then, why not pursue that first? The incentive would be too large.

 

[libertyyne]

Pretty sure there is no such thing as a fee waiver for the deposit. Because you get your money back if you withdraw and if you don't withdraw, you're just putting down a payment on your tuition.

pretty confident the people pinched for money are not thinking about lost interest when putting down deposits.

 

[aldol16]

pretty confident the people pinched for money are not thinking about lost interest when putting down deposits.

You're right. Because they don't have enough money to have a substantial amount tied up somewhere for months on end. You still haven't produced a source for "waivers for deposits" so I'll have to assume you just pulled that out of thin air.

 

[MeltingIceCube]

You're right. Because they don't have enough money to have a substantial amount tied up somewhere for months on end. You still haven't produced a source for "waivers for deposits" so I'll have to assume you just pulled that out of thin air.

I was graciously granted a deposit waiver from my #1 choice. I only had to click 'accept'.

 

[aldol16]

#

Was it a waiver or did they simply switch to a no deposit required system? Because I know schools that used to require deposits but switched over. Would you also mind sharing the name of the school? PM is fine for privacy.

 

[ChrisMack390]

I have 3 acceptances and have not paid any deposits. I'll be holding them all until financial aid info comes out. Sorry.

 

[sullen-burger]

I have 3 acceptances and have not paid any deposits. I'll be holding them all until financial aid info comes out. Sorry.

I don't know enough about this, but I thought that paying the deposit is a way of holding the acceptance.

Do schools hold you automatically regardless if you replied to their email or phone call?

 

[ChrisMack390]

I don't know enough about this, but I thought that paying the deposit is a way of holding the acceptance.

Do schools hold you automatically regardless if you replied to their email or phone call?

All the schools I have been accepted to have simply made me click a button or sign a form that I want the acceptance.

I know some schools ask for a little money. I guess I just got lucky.

 

[Papa Oso]

This is pretty interesting. In regards to DO admissions VS MD admissions, do MD admissions offer more acceptances per seat when compared to DO's? On account that the MD deposits are significantly cheaper?

 

[aldol16]

All the schools I have been accepted to have simply made me click a button or sign a form that I want the acceptance.

More schools have been switching to the no-deposit scheme. Which is better for almost everyone involved.

 

[iluvbeingpremed]

University of Iowa Carver. Stressed to us that it's free to hold your seat "so please accept the acceptance to increase odds for a good financial aid package." Everyone accepted will hold that acceptance lol.

I would guess they say that everywhere lol but personally I got into Indiana U (OOS) and hated the interview day and school so much that despite is costing nothing to hold the acceptance I withdrew. (Should mention that I had gotten into IS school at that point)

 

[libertyyne]

This is pretty interesting. In regards to DO admissions VS MD admissions, do MD admissions offer more acceptances per seat when compared to DO's? On account that the MD deposits are significantly cheaper?

My personal theory is that MD schools are easily able to fill their seats at the end. DO schools on the other hand probably have difficulty getting their seats filled appropriately because the most competitive candidates probably get into MD schools, leaving the school to scramble to fill their classes at the last moment.

 

[Papa Oso]

My personal theory is that MD schools are easily able to fill their seats at the end. DO schools on the other hand probably have difficulty getting their seats filled appropriately because the most competitive candidates probably get into MD schools, leaving the school to scramble to fill their classes at the last moment.

Completely agree. Using this logic, MD schools probably "over accept" less than DO schools since nearly everyone would pick an MD spot over a DO spot.

 

[aldol16]

Completely agree. Using this logic, MD schools probably "over accept" less than DO schools since nearly everyone would pick an MD spot over a DO spot.

Well, it should depend on the tier of MD school. Top MD schools aren't competing with DO schools for students. They're only competing with mid-tier schools. Similarly, mid-tier schools are competing with high- and low-tier schools for students. Low-tier schools are competing with DO schools for students. And state schools compete with all other schools for students because they are usually the "safety" school. Too many factors go into how each tier of school decides who to admit to come to any meaningful conclusion about the prevalence of "over-acceptance" at each tier of school.

 

[Papa Oso]

Well, it should depend on the tier of MD school. Top MD schools aren't competing with DO schools for students. They're only competing with mid-tier schools. Similarly, mid-tier schools are competing with high- and low-tier schools for students. Low-tier schools are competing with DO schools for students. And state schools compete with all other schools for students because they are usually the "safety" school. Too many factors go into how each tier of school decides who to admit to come to any meaningful conclusion about the prevalence of "over-acceptance" at each tier of school.

Serious question: there are "low tier" MD programs which are competing with DO schools? I thought the general consensus was that you pick MD over DO pretty much all of the time (as long as the MD is an American school).

 

[SilveoDante]

Serious question: there are "low tier" MD programs which are competing with DO schools? I thought the general consensus was that you pick MD over DO pretty much all of the time (as long as the MD is an American school).

I believe most logical people would attend any US MD over any DO. If someone admits to the contrary they are delusional or lying to themselves.

 

[aldol16]

Serious question: there are "low tier" MD programs which are competing with DO schools? I thought the general consensus was that you pick MD over DO pretty much all of the time (as long as the MD is an American school).

I believe most logical people would attend any US MD over any DO. If someone admits to the contrary they are delusional or lying to themselves.

No, not realistically. My point is that one shouldn't generalize that "MD schools 'over-accept' less than DO schools." It depends on tier. At an MD school with high yield, they're not going to over-accept. An MD school with lower yield is going to over-accept more. It also depends on the school list that a student applies to because each tier of school will get a very distinct group of students. It's self-selecting and not all students will make a decision on where to go only by ranking.

 

[zurc2014]

I would guess they say that everywhere lol but personally I got into Indiana U (OOS) and hated the interview day and school so much that despite is costing nothing to hold the acceptance I withdrew. (Should mention that I had gotten into IS school at that point)

Nah, not all schools said that. Many schools took the " if you know you will not attend, decline as soon as you know so it can go to someone else..." approach.

 

[zurc2014]

Serious question: there are "low tier" MD programs which are competing with DO schools? I thought the general consensus was that you pick MD over DO pretty much all of the time (as long as the MD is an American school).

Fact. I LOVED a few of the DO schools over the new MD schools I interviewed at. Even tho I would have been happy as a DO, theres no way I would choose them over an MD acceptance. The comment that lower tier MD schools are competing with DO schools is false. Its no competition.

 

[SilveoDante]

Fact. I LOVED a few of the DO schools over the new MD schools I interviewed at. Even tho I would have been happy as a DO, theres no way I would choose them over an MD acceptance. The comment that lower tier MD schools are competing with DO schools is false. Its no competition.

This!

Also, I think DO school deposits are completely outrageous. It reminds me of a "prey upon the vulnerable" scheme. "Oh, you don't have an acceptance? Here...pay $2k+ and you can change your life".

 

[aldol16]

Also, I think DO school deposits are completely outrageous. It reminds me of a "prey upon the vulnerable" scheme. "Oh, you don't have an acceptance? Here...pay $2k+ and you can change your life".

No, some applicants who may not even rank the school very high up on their list hold up the line for other applicants who do, causing an externality for the school and other applicants. So the school found a way to internalize the externality.