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Merit Scholarships and Scores: Does Test Prep Pay Off?

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Once students take their SAT or ACT tests and are admitted into their dream schools, the next concern for many families is the cost of college tuition. Fortunately, SAT and ACT scores can benefit you financially in the form of merit scholarships. Investment in test prep blows every other type of investment out of the water.

Families who tutor with MJ Prep often see Return on Investment (ROI) from 550% to 2,500%.

Sure beats the 1% your checking account pays, right?

Types of Scholarships

Every university has financial aid programs to allow students in need to be able to attend. There are two general types of financial aid programs: need-based and merit-based. Need-based financial aid is determined by the college tuition amount minus a family’s expected financial contribution (calculated via the FAFSA). Merit scholarships are awarded based on academic achievements. The qualifications for scholarships typically consist of at least two things – high school GPA and test scores. While GPA is important in regards to financial aid, a high SAT or ACT test score can also help you earn merit scholarships.

Merit Scholarships

According to a study conducted by the National Association for College Admission Counseling (NACAC), about four out of five colleges use standardized test scores to determine merit scholarship distribution. Many universities offer academic merit scholarships that require minimum SAT or ACT scores to even be considered. Additionally, students who score in the top ten percent of test-takers (on either the SAT or ACT) can count on being offered merit scholarships upwards of $20,000/year at many great colleges.

Payoff of Merit Scholarships

Improvement in a student’s ACT and SAT scores can mean HUGE dollars for families. Here are some examples:

A student ranked in the top 20% of her class would possibly get into Baylor University with a 24 on the ACT and pay about $47,000 per year in tuition and fees.


The same student would pay $39,000 per year with a 25 on the ACT, $31,000 per year with a 27 on the ACT, or as little as $25,000 per year with a 34 on the ACT.

ONE point can unlock $32,000 over four years

A Texan with a 3.0 GPA and a 23 on the ACT might get into Oklahoma State University and pay about $25,000 per year in tuition and fees.


The same student would pay about $17,000 per year with a 24 on the ACT, $14,000 per year with a 25 on the ACT, and as little as $12,000 per year with a 30 on the ACT.

ONE point can unlock $32,000 over four years

A Texan with a 3.25 GPA and a 25 on the ACT might get into The University of Oklahoma and pay about $27,000 per year in tuition and fees.


The same student would pay about $21,000 per year with a 26 on the ACT. With a 3.5 GPA, a student with a 26 on the ACT would pay about $20,000 per year or as little as $14,000 per year with a 31 on the ACT.

ONE point can unlock $28,000 over four years

Planning Testing for Merit Scholarships

Some schools have the same application deadline and scholarship deadline, which means students have to have scores in place for automatic scholarships before they apply. However, many students allow students to retake the ACT or SAT even after acceptance to the school. Even better, many schools allow students to take unofficial tests (called residual tests) on the campus itself to earn more merit scholarships! This can serve as a huge benefit to Seniors since they can plan to test only for $$ after they’ve already graduated from High School!

While SAT and ACT scores alone won’t necessarily be enough to get you into college or guarantee a big scholarship, college admissions tests do matter. Many colleges believe that students with higher SAT/ACT test scores will likely be stronger students who will go on to perform well in college and reflect well on their alma mater after graduation.

Don’t forget that you can still search for external scholarships!

The summer before Junior year is the perfect time to start test prep for the SAT or ACT, but we work with students at all levels: from Juniors trying to knock out admissions numbers and scholarship numbers all at once to Seniors who are admitted but could use some extra money.