Since July 2025, funds from 529 accounts can now be used for standardized test prep and college counseling.
But is it a good idea to use those savings in that way? Wouldn’t they be better directed toward paying college tuition?
Test Prep Can Save Tens of Thousands
Obviously, better test scores correlate closely with better colleges. A high score will open new doors. That’s one reason to think about boosting your test performance.
But another reason is that even a modest improvement in scores can pay off massively, as more than a few schools directly link scholarship dollars to testing.
Case study: University of Tennessee
Take the University of Tennessee as an example:
Imagine that you get a decent SAT score on your first try with no real preparation, around 1100-1150 (67th-74th percentile). You would already be within striking distance of Tennessee’s scholarship threshold. Or maybe you scored an excellent 1300 (91st percentile) but want to try for that next tier of scholarship before committing to the Volunteers. What should you do?
You might very well increase your score significantly on the second attempt, which most students do. One 2012 study showed that for students who took the SAT more than once, 64% of these scored their highest on their final attempt; another in 2015 showed that students boosted their score by an average of almost 23 points per retake.
But if you also include test prep, your numbers are likely to be even higher. Data averages show that students who receive help in the form of SAT prep increased their scores by 56.2 points. At Classic Test Prep, we expect to beat that baseline average–and to do so more efficiently and at lower cost than other methods.
What about at other schools?
University of Tennessee is a good school. U.S. News & World Report ranks them as the #49 public university and the #102 national university overall out of about 1,500 schools nationwide.
But every school is different. Alabama State, for instance, offers a full ride with a 1240 SAT and a GPA of at least 3.76. As a general rule, less prestigious schools are more likely to use test scores as the main benchmark for major scholarships. By comparison, the more prestigious schools will still want good test scores in tandem with a good GPA and other checkmarks on your transcript as well.
But the basic pattern still holds: boosting your scores gets schools to notice you and it can lead to massive discounts.
Test Prep is a Sound Financial Investment
That means that a few hundred dollars in study guides and tutoring could easily end up saving you tens of thousands of dollars over a four-year degree.
A little test prep is a smart investment now compared to what colleges will charge you in tuition over several years.