The Cost of (Test-Optional) College
As more schools announce test-optional policies, submission of SAT and ACT scores is still frequently required to receive merit aid.
Cost is not typically the first topic of conversations between college-bound students and their parents. But it should be: instead of crossing this bridge when acceptance letters start rolling in, it’s wise to research the cost of college at the outset of the college admissions journey. For many students, that’s in sophomore or junior year, right around the time they’re considering when (or whether) to take the SAT or ACT.
This isn’t a comprehensive guide to college financial planning. Rather, it’s an earnest look at the financial implications of test-optional policies. While many of these policies are still evolving, it’s common for schools to continue requiring of test scores for other purposes, including those that impact cost.
Types of Aid
Most people use the terms “financial aid,” “scholarships,” and “merit aid” interchangeably – though they actually refer to distinct types of funds. Financial aid refers to need-based grants and loans the college or university makes available to students, either via federal programs (e.g., Pell Grants) or the institution’s own cash reserves. Scholarships can be either merit-based (i.e., awarded on the basis of a student’s credentials or profile) or need-based, and typically require a separate application. Finally, merit aid is automatically awarded on explicit criteria, often GPA and/or SAT/ACT scores.
Different tiers of schools employ different funding strategies to execute their missions and attract certain kinds of students. For instance, the most selective colleges, which rely on the strength of their brand to attract high-achieving students and the size of their endowments (rather than tuition) to fund yearly operations, typically practice need-blind admissions and offer little to no merit aid. In contrast, state universities and smaller, regional liberal arts colleges are more likely to use merit aid to attract top-performing students.
Even when these latter tiers announce a test-optional admissions policy, they rarely change their funding models.
Guaranteed Scholarships
Let’s focus on merit aid for a moment. Because merit aid follows prescribed formulas (though these aren’t always published), it’s often referred to as “guaranteed scholarships.”
For example, if you’re admitted to Baylor University and score a 1200 SAT / 27 ACT, you’ll get $14,000 over four years in merit aid, guaranteed. If you score 1360 SAT / 32 ACT, you’ll get $32,000 over four years. Similarly, if your GPA and SAT or ACT test scores are in the top 25% of admitted students at University of Colorado – Boulder, you’ll receive $25,000 over four years. Such institutions have determined that students with these credentials are worth those amounts in tuition reduction.
Additionally, the National Merit Corporation awards a small scholarship (roughly $2000/year) to the top 0.5% of junior-year PSAT scorers in each state. Many colleges, looking to attract these students to their campuses, match this sum through their own National Merit scholarships.
Finally, Oregon and Washington students enjoy eligibility in the Western Undergraduate Exchange (WUE) program. WUE is a consortium of Western state schools that offer reduced out-of-state tuition to residents of other Western states, provided they meet specific benchmarks. (Each WUE school sets their own benchmarks, so students will need to do their own research.) To take just one example, Western Washington University awards WUE tuition, valued at $52,400 over four years, to the top 10-15% of admitted out-of-state students, reporting average test scores of 1400 SAT / 30 ACT.
Merit-based aid and other guaranteed scholarships are likely to stick around after test-optional policies take effect for two reasons: (a) US News & World Report will continue to utilize them in their rankings; and (b) granting a student admission and financing that student’s attendance represent different risks – and higher risks will always be more calculated.
Advanced Credit and Accelerated Programs
Another way to save on tuition in the long run is by reducing the number of semesters students attend (and pay for) college.
For instance, earning a top score on AP or IB exams often qualifies students for advanced credit and places them out of core course requirements (e.g., Composition 101 or College Algebra). At some schools, SAT Subject Tests or even SAT and ACT are used for similar purposes. Students can decide to use this extra freedom to graduate early, or else take more electives or classes in their major/minor.
Many universities also offer enrollment in accelerated and/or dual-degree programs (e.g., BA/MS in Computer Science or BA/MPH in Public Health). For students with a clear professional track in mind, these programs are a fabulous way to save on the cost of college and beyond. Because these programs are more academically rigorous and accept smaller cohorts, they usually require standardized test scores (SAT, ACT, or some combination of these plus SAT Subject Tests) – even when the school has implemented a test-optional policy at large.
The point is that test scores are used in so many different aspects of the college enterprise that even when the admissions department decides to change the rules it plays by, many institutional processes and policies carry on as before.
Conclusion
Taking a high-stakes test isn’t a preferred activity for most teenagers. And many who hear a test-optional message will promptly excuse themselves from the task. But that would be hasty. All available data indicate that the financial policies and requirements will remain unchanged as schools migrate toward test-optional policies, both in the short-term (due to the coronavirus) and in the long-term.
That means students, if they want to graduate as debt-free as possible, should keep their focus on SAT and ACT. Those who do are likely to be rewarded for their hard work and perseverance – rewards in and of themselves, some might say.
