ACT scores, scholarships, and 529 plans

Is ACT prep worth it?

The answer depends on the student and the colleges under consideration. At schools with ACT-based merit scholarships, a higher score may qualify a student for more aid. The difference between two score tiers can add up over four years.

Start by checking the published scholarship requirements at the schools your student is considering. Families can also ask their plan administrator or tax professional whether their 529 funds may cover the course.

Last reviewed: May 29, 2026

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How a score increase could affect college cost

Investment

$299 ACT prep course

The financial value of a score increase depends on the scholarship rules at each college. Published tiers make it possible to compare the cost of the course with a possible change in merit aid.

Potential outcome

+2 ACT points
+$2,000-$6,000 per year in scholarships
Four-year value: $8,000-$24,000

Estimated four-year scholarship value

$8,000-$24,000

Estimated return on a $299 investment

26x-80x

Estimates are illustrative and based on common merit scholarship step-ups. Actual results vary by school, residency, GPA, current score band, and final score improvement.

In this example, the student moves from one published scholarship tier to another. The actual award would depend on the college's full eligibility rules, application deadlines, and final decision.

A simple student example

Student profile

GPA: 3.7
ACT: 27
Current award: $6,000/year

After a score increase

ACT: 30
Updated award: $10,000/year
Difference: $4,000/year
Four-year value: $16,000

Where the 529 plan fits

Some families may be able to use 529 funds for certain tutoring or educational classes. Rules can vary by plan, state, and individual tax situation. Confirm eligibility before using the funds.

Can a 529 plan cover ACT or SAT prep?

Current IRS guidance includes certain tutoring or educational classes outside the home and certain college admissions exam fees as K-12 qualified education expense categories. Because ACT and SAT prep are structured academic courses, many families now ask whether prep can fit under that language.

The IRS lists tuition for certain tutoring or educational classes outside the home and fees for college admissions examinations among K-12 qualified education expense categories. Review IRS Topic 313 and IRS Publication 970 before relying on 529 funds for a specific expense.

Important note

ACT and SAT prep are not explicitly named in the current federal language. Families should confirm eligibility with their tax professional and plan administrator before using 529 funds this way.

See what one more ACT point could be worth

Enter a GPA, ACT score, and state of residence. The calculator shows the current published tier and the next ACT score that may qualify for a larger award.

See scholarship tiers View course dates

Sources to review

What to confirm before using 529 funds

Does your 529 plan allow expanded K-12 educational expenses such as tutoring or educational classes outside the home?
What documentation is required for reimbursement or direct payment?
Are there annual usage limits or state-specific rules that affect your strategy?
Does your tax professional view ACT or SAT prep as qualifying under the current rules for your situation?

Documents provided after enrollment

Detailed payment receipt
Program schedule confirmation
Named student enrollment verification
Course description showing structured academic instruction

Check the colleges on your student's list

Use the calculator to compare score tiers, then verify the award rules and deadlines on each college's website.

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Common questions

What families should know before deciding

Is ACT prep worth it?

It depends on the student and the colleges under consideration. Some colleges publish scholarship tiers tied to ACT scores. Reaching the next tier can change the cost of attending that school by thousands of dollars.

Compare scholarship tiers

What if my student only improves a little?

One or two points can matter when a student is close to a published scholarship cutoff. The calculator shows the next ACT score listed for each school in its data.

Can we use 529 funds for ACT prep?

It may be possible in some situations. Current IRS guidance includes certain tutoring or educational classes outside the home and certain college admissions exam fees, but families should confirm their own plan, state rules, and tax situation before using funds.

What should we do before enrolling?

Check the scholarship requirements at the colleges your student is considering. Then use the calculator to compare the current score with the next published tier.