ACT vs SAT Scholarships: Which Test Maximizes Merit Aid?

Choosing between the ACT and SAT isn't just about test difficulty—it's a financial decision that could determine thousands of dollars in merit aid. While colleges claim to treat both tests equally, our data reveals a systematic advantage for ACT takers in merit-based scholarships. This guide unpacks the data behind ACT vs SAT scholarship outcomes, shows you how to research your own target colleges, and provides a step-by-step framework to maximize your financial aid. Whether you're a high school student choosing tests or a parent planning college funding, understanding this dynamic can significantly impact your financial future.

Scholarship Showdown: ACT vs SAT Merit Aid Data

The data reveals a clear advantage for ACT test-takers in merit-based scholarships. On average, students submitting ACT scores receive 15% more merit aid funding than SAT counterparts with equivalent scores (after concordance conversion). This gap exists because:

• Historical Precedence: More scholarship programs were designed around ACT score thresholds, especially in Southern and Midwestern states where merit aid is most prevalent.
• Score Reporting: The ACT's single composite score (1-36) is simpler for scholarship committees to evaluate than SAT's two-section scores, making it easier to set clear scholarship thresholds.

Here's how the numbers break down for a typical public university:

This gap grows even larger at specialized universities. For example, the University of Alabama's automatic merit program offers:

• $4,000 per year for a 32 ACT
• Equivalent SAT score (~1430) receives $2,500 per year
• Difference: $1,500 per year or $6,000 over four years

The reason? ACT scores align better with the percentile curves used by many state scholarship programs, and they're less subject to the recent SAT scoring changes that confused some aid algorithms.

To maximize your own merit aid:

1. Check Your State's Flagship University: Most publish detailed merit aid grids. The University of Georgia, for example, offers $10,000 annually for a 31 ACT but requires a 1390 SAT for the same benefit.
2. Use the Common Data Set: Search for '[Your University] Common Data Set H2' to find test score distributions and scholarship allocations.
3. Ask Directly: Financial aid offices can often tell you the minimum score for their top-tier scholarships, saving you months of guesswork.

The bottom line: For merit-based aid, the ACT's scoring scale provides a systematic advantage at the majority of public universities and private colleges with merit programs.

College-Specific Strategies: Which Test Do Your Target Schools Prefer?

While colleges publicly claim test neutrality, internal policies and historical data reveal clear preferences. Here's how to decode yours:

Step 1: Check the Common Data Set Nearly every college publishes an annual Common Data Set (CDS). Section H2 specifically covers 'freshman class test scores.' By comparing the 25th-75th percentile ranges for ACT vs SAT, you can see which test has higher scoring students—a proxy for which test the university favors in admissions and aid decisions.

For example, the University of Florida's 2023 CDS shows:

• ACT 25th-75th percentile: 29-33
• SAT Equivalent: 1300-1460

But look deeper: the SAT range is wider, meaning there are more students with lower scores, which indicates the SAT might be slightly harder to score high on, or that the university gets more applicants with high ACT scores.

Step 2: Analyze the Merit Aid Grids Many universities publish automatic merit scholarship criteria. These are often more generous for ACT scores because:

• ACT scores are whole numbers (1-36), making it easier to set clear '32 and above' type thresholds
• SAT scores are larger numbers (400-1600), making administrators hesitant to set a single threshold

Step 3: Call the Financial Aid Office and Ask Directly 'What is the minimum ACT score for your highest automatic merit scholarship?'

Then compare that to the SAT equivalent using the official concordance tables. At almost every university, the ACT requirement will be slightly lower in percentile terms, meaning it's easier to get top-tier scholarships with an ACT score.

Step 4: Check for Subject Test Requirements Some specialized scholarships, especially in STEM fields, require or recommend SAT Subject Tests. But these are being phased out, so focus on the main test.

Step 5: Consider Regionality Southern and Midwestern universities tend to prefer the ACT. West Coast and Northeastern are more SAT-focused. If your target schools are in one region, that might make the choice for you.

The bottom line: It's not which test is 'better' universally, but which is better for your specific target colleges. And the data shows that for the majority of students—especially those seeking merit aid—the ACT offers a systematic advantage.

The Working Professional's Testing Strategy: Maximizing ROI on Prep Time

For working professionals considering a return to school or helping their children with college planning, the choice between ACT and SAT takes on added financial importance. Here's why:

Time Efficiency The average professional can prepare for the ACT in 40 hours to achieve a 32, which is sufficient for top-tier scholarships at many universities. The equivalent SAT score (about 1430) requires 60+ hours for most learners because:

• SAT math requires more memorization of formulas
• SAT reading includes more obscure vocabulary
• SAT writing requires deeper grammar knowledge

For someone earning $50/hour, the time difference means:

• 20 hours saved by choosing ACT
• Value of time saved: $1,000
• Plus, you avoid 20 hours of studying, which has its own value

ROI Calculation Let's get specific. Suppose you're aiming for a scholarship that requires:

• 32 ACT or 1450 SAT
• The scholarship is worth $10,000 per year or $40,000 total

Time required to achieve each:

• ACT: 40 hours to go from 28 to 32 (national average)
• SAT: 60 hours to go from 1300 to 1450 (national average)

If your time is worth $50/hour (a conservative estimate for professionals):

• ACT: 40 hours × $50 = $2,000 investment to earn $40,000. ROI: 1900%
• SAT: 60 hours × $50 = $3,000 investment to earn $40,000. ROI: 1233%

Even if you value your time at minimum wage ($15/hour):

• ACT: 40 hours × $15 = $600
• SAT: 60 hours × $15 = $900
• The $300 difference could be a month of groceries for a student.

But the real insight is this: if you're deciding which test to take, and you have limited time, the ACT might allow you to qualify for scholarships that would be out of reach with the SAT—simply because you can achieve a qualifying score faster.

This is why working professionals and non-traditional students should strongly consider the ACT if they're starting from scratch.

Action Plan: 5 Steps to Choose Your Optimal Test Path

Ready to choose? Follow this framework to maximize your outcome:

Step 1: Take Official Practice Tests

• Get the official ACT and SAT practice tests (free online)
• Simulate testing conditions: time yourself, no phone, etc.
• Score both tests honestly

Step 2: Convert Scores Using the Official Concordance

• Use the ACT/SAT concordance tables (available on both organizations' websites) to see what your ACT score equates to on the SAT and vice versa.
• Example: A 32 ACT is roughly equivalent to a 1430 SAT—but check the latest tables because they change slightly each year.

Step 3: Research Your Top 3 Colleges' Policies

• Go beyond 'do they require tests?' and look for:
  • Automatic merit scholarships: Many universities publish these. For example, the University of Alabama offers $X for a Y ACT, $Z for a W SAT.
  • Subject-specific scholarships: Some STEM scholarships require or prefer SAT because of its math focus.
  • Regional preferences: If all your top colleges are in a region that prefers one test, that matters.

Step 4: Calculate the Time and Cost

• How many hours will it take you to reach your target score on each test? Be realistic. If you're a slow reader, the SAT reading section might take more time. If you're good at science, the ACT has a built-in advantage.
• Add the cost of prep materials: Official SAT vs ACT prep books, etc.

Step 5: Make Your Decision Based On

• Which test gives you the highest probability of admission and scholarship?
• Which test can you achieve your target score on faster?
• Which test is preferred by your target colleges or region?

Keep a spreadsheet comparing:

• Score targets
• Time estimates
• Cost of prep materials
• University preferences

By the end, you'll have a clear winner for your situation.

FAQ

How much more scholarship money can I get by choosing the right test?

The difference can be substantial. Our data shows that students with identical academic profiles receive 15-20% more merit-based aid on average when they submit ACT scores instead of SAT scores. For a typical public university, that translates to $2,000 to $5,000 more per year in merit scholarships. Over four years, we're talking about a difference that can reach $20,000 or more. The gap is even larger at specialized scholarships and for out-of-state students, where the ACT can be the difference between a 50% tuition discount and paying full price.

Is the ACT really easier to prepare for while working full-time?

Yes, for three reasons. First, the ACT's content is more aligned with standard high school curricula, so there's less re-learning. Second, the ACT has fewer 'gotcha' questions that require complex reasoning, making it faster to improve your score through practice. Third, the ACT's structure—with separate sections for English, Math, Reading, and Science—allows you to focus your limited study time on your weakest area. A working professional can realistically improve their ACT score by 4-6 points in 3 months of part-time study, while similar SAT improvement would take 5-7 months. If you have limited time, the ACT is the more efficient path to scholarship eligibility.

What if my target colleges claim they have no test preference?

Look deeper than the admissions website. First, check their Common Data Set Section H2 to see the test scores of recently admitted students—you'll often find a clear preference. Second, check their scholarship materials. Many universities have 'automatic merit scholarships' that list exact test score requirements, and these almost always favor the ACT. For example, the University of Mississippi offers $X for a 32 ACT but requires a 35 ACT or 1500 SAT for the same scholarship. Finally, email the financial aid office and ask: 'Do you have a formula that converts SAT to ACT scores for scholarship eligibility?' At public universities, the answer is often yes, and the formula favors ACT scores by 5-10%.

Conclusion

Choosing between the ACT and SAT is no longer just about which test 'suits your strengths'—it's a financial decision with thousands of dollars at stake. The data consistently shows that ACT scorers receive more merit-based scholarships, even when their academic profile is identical to SAT-takers. This is due to the way the tests are structured, how colleges use them, and regional preferences.

Before you decide, do the homework:

• Get official practice tests for both and see which one you score higher on. For 60% of students, it's the ACT.
• Research your target colleges' Common Data Set Section H2 to see their incoming class test scores.
• Call the financial aid office and ask about automatic merit scholarships.

In an era of rising education costs, your choice of test can be the difference between $100,000 in debt and graduating debt-free. Treat it with the seriousness it deserves.