Can You Use a 529 Plan for SAT Prep?

Can You Use a 529 Plan for SAT Prep? The short answer is noyou cannot use a 529 plan to pay for SAT prep.

However, all is not lost. While SAT prep classes can be expensive, they don’t have to be. There are affordable options to help you prepare for the SAT.

Here’s what you need to know

You cannot use a 529 plan to pay for an SAT prep class. According to the IRS, “expenditures for sports, games, hobbies, or non-credit classes do not qualify.” Since SAT courses are generally not for credit, they do not count as a special expense.

You can find the full list of eligible 529 plan expenses here.

While you can’t use 529 funds to cover SAT prep costs, you may be able to prepare for the test without spending a dime. Khan Academy is a free online platform that offers a wide range of study materials, including SAT test preparation materials.

When you use Khan Academy, you can connect the platform to your College Board account. From there, Khan Academy will evaluate your part test performance to determine where you should focus your study efforts.
According to the platform, students who use the practice offered by Khan Academy for at least 20 hours see a score increase of 115 points. With such an improvement, you may not need to pay for additional SAT prep classes.

Learn more about Khan Academy in our full review.

While not every college and university requires a standardized test score, most do. For some students, an SAT prep course is a useful tool they can use to earn a higher score. While an SAT prep course can be helpful, it can also be quite expensive.

Here’s a look at some of the SAT prep services and their costs:

• Chaplain: Kaplan offers a Digital SAT course taught by instructors who scored in the 99th percentile on the SAT. It costs $640, which can be paid in installments.
• PrepScholar: PrepScholar offers an online prep course for $397. If you want one-on-one support, tutoring packages start at $995.
• University Professors: If you’re looking for on-demand support, Varsity Tutors’ month-to-month style subscription might be right for you. Packages start at $269 per month, which come with access to live classes.
• The Princeton Review: The Princeton Review offers an online course and one-on-one tutoring for students seeking a higher SAT score. The Digital SAT 1,400+ course costs $1,899. One-on-one tutoring starts at $175 per hour.

Based on the options above, you can see that SAT prep can cost hundreds or thousands of dollars. The best SAT prep options will help students achieve their best possible score. But it’s always a good idea to shop around to find the best SAT test prep option for your situation.

Related:
Best test prep courses

The college admissions process is increasingly competitive. If a college or university requires SAT scores as part of their admissions process, getting a high score is one way to tip the scales in your favor.

An SAT prep course can be a significant expense for any family. But the reality is that regardless of the price of your prep course, you’ll need to commit to putting in the effort if you want to see a higher score.

For many students, starting with a free resource like Khan Academy is a good place to start. Spend some time editing the free materials. After using these free resources, choosing to pay for an SAT prep course could provide the extra support you need.

Related:
What Makes a Good SAT Score: Strategies for Success

Taking the SAT is often a large part of the college preparation process. If you’re applying to colleges that require an SAT score as part of the admissions process, then working to earn a higher score can pay off.

While some SAT prep classes are expensive, you can’t use 529 money to cover the cost. For students who want help preparing without paying for support, consider taking advantage of the free resources offered through Khan Academy. But if you need extra help, paying for a prep class out of pocket can help take your score to the next level, especially if you work with a reputable SAT test prep service.