Takeaways from Unlocking Automatic Scholarships With PSAT, SAT, & ACT Scores
Earn while you learn!
Most students and families agree—a college education, particularly at a highly selective school, can very costly. Luckily, students can qualify for abundant merit aid just by excelling on admissions tests they should be prepping for anyway. Amy and Mike invited educator Shaan Patel to explore how to unlock automatic scholarships with PSAT, SAT, & ACT scores.
Listen to the full episode HERE before or after you review the key takeaways, topic breakdowns, and questions answered from this episode.
Key Takeaways
High test scores can lead to significant merit-based scholarships, even at prestigious universities
The PSAT (NMSQT) is crucial for National Merit Scholarships and can lead to full-tuition offers from over 100 colleges
Local scholarships often have less competition and are easier to win than national ones
529 savings plans can now be used for test prep expenses, offering potential tax savings
…Speaking of money for college, Amy and Mike are moderating an exciting free webinar this month: Scholarships & Majors: How College Major Clarity Unlocks More College Aid. Join us on September 30 at 7:30pm EDT to learn essential strategies from scholarship strategist Dave Peterson and master career coach Lisa Marker-Robbins PLUS one real scholarship example for each of the six most popular majors! Register here.
Topical Breakdown
Merit-Based Scholarships vs. Ivy League
Many prestigious universities (e.g., Duke, Johns Hopkins, USC) offer merit-based aid
Ivy League schools typically don't offer merit-based scholarships
High scores can lead to half or full-tuition scholarships at top institutions
PSAT and National Merit Scholarship Program
PSAT serves as National Merit Scholarship Qualifying Test (NMSQT)
Top 1% in each state qualify; cutoff scores vary (e.g., 1460-1470 in Massachusetts, 1350-1360 in Nevada)
Over 100 colleges offer automatic scholarships to National Merit students
Prep should start early, ideally in 9th or 10th grade for 11th grade PSAT
Non-National Merit Scholarship Opportunities
Scholarships often available for scores around 1300 SAT / 28-29 ACT
State-specific programs like Bright Futures (Florida) and HOPE (Georgia)
Many universities offer partial to full tuition based on test scores
529 Savings Plans for Test Prep
As of summer 2025, 529 plans can be used for test prep expenses
Includes SAT/ACT fees and associated tutoring
Potential for 20-40% savings through tax benefits
Effective Scholarship Strategies
Focus on local scholarships (city, state, community) for less competition
Apply to multiple scholarships; small awards can add up
Start early and treat scholarship applications as a part-time job
Next Steps
Research local scholarship opportunities in your area
Consider starting PSAT/SAT/ACT prep early (9th/10th grade) for best results
Investigate your state's 529 plan for potential test prep savings
Explore Prep Expert's resources (courses, free e-books, webinars) at prepexpert.com
Q&A
Shaan Patel's Background
How did Shaan get into test prep?
Raised SAT score from 1760 to perfect 2400
Got into top universities and won $500k in scholarships
Wrote SAT prep book, started teaching courses
Founded Prep Expert, featured on Shark Tank
Helped 100k+ students improve scores and win $100M+ in scholarships
Scholarships and Test Scores
How do SAT/ACT scores translate to guaranteed scholarship money?
Many prestigious universities offer merit-based aid for high scores
Examples: Duke, Johns Hopkins, Chicago, Vanderbilt, USC, UT Austin
Can earn half to full tuition scholarships without separate applications
Allows minimizing undergrad costs, especially if planning grad school
What SAT/ACT scores typically qualify for scholarships?
Around 1300 SAT / 28-29 ACT starts to open scholarship opportunities
Varies by school, but these scores can qualify for partial to full tuition
National Merit Scholarships
How does the PSAT connect to National Merit scholarships?
PSAT = National Merit Scholarship Qualifying Test (NMSQT)
Top 1% in state qualify as Semifinalists
Score cutoffs vary by state competitiveness (e.g. 1460+ in MA, 1350+ in NV)
100+ colleges offer large scholarships to National Merit students
Can be worth $130k-$150k+ over 4 years at some universities
When should students start preparing for the PSAT?
Start as early as summer after sophomore year
October of junior year is typically when the PSAT is administered
Earlier prep recommended to maximize scholarship opportunities
Scholarship Strategies
What are effective strategies for maximizing scholarship opportunities?
Apply for many local scholarships (city/state/community)
Higher win rate than national scholarships due to less competition
Even smaller $1-2k scholarships add up
Can be more lucrative than part-time work in high school
Test Prep Funding
How can families fund test prep?
As of summer 2025, 529 plans can be used for test prep
Includes SAT/ACT fees and associated tutoring
Can provide 20-40% tax savings on prep costs
Submit receipts to 529 plan administrator for reimbursement