Both tests are strictly used by undergraduate college admissions personnel to determine the viability of applicants at their respective institutions. Scores on the ACT and SAT are used to compare prospective students to each other; grade-point averages fluctuate depending on the quality of high school and the rigorousness of coursework, but the ACT and SAT each grade on a single scale. Once the student is admitted into college, the ACT and SAT have no bearing on which classes the student may or may not take, or what programs of study a student enrolls in.
Institutions may award merit scholarships to students who meet certain criteria, such as a qualifying ACT or SAT score. Public university systems reward students who attend in-state colleges, and the amount of these awards can vary depending on the students' scores. ACT and/or SAT scores may be key factors in scholarships granted by private, undergraduate institutions.
For transfer students, ACT or SAT scores are not generally inspected by the destination university; for students who have already enrolled in a university, admissions departments care much more about the undergraduate's grade-point average. Only in select cases will admissions offices ask for ACT or SAT scores, such as when freshmen apply to transfer and they either have no official grades yet or have only one semester completed. Otherwise, the ACT and SAT are non-factors.
The ACT is a curriculum-based test: it is comprised of five sections testing students on English, mathematics, reading, science and writing. The ACT writing section is optional, although some colleges and universities require it. Besides the essay, all questions are multiple-choice, and there is no penalty for guessing. The SAT is an aptitude test, composed of only three sections: critical reasoning, mathematics and a required writing portion. This test relies more on general thinking and logic than previous curriculum taught in school. The SAT also deducts points for incorrect answers, thus penalizing guesses.
The ACT originally stood for "American College Testing," a private, nonprofit organization founded in 1959 in Iowa City. For years, the ACT test was administered primarily in Midwestern states, although the ACT organization claims participation in all 50 U.S. states. In fact, from 2002 to 2007, ACT-takers on the East Coast rose by 66 percent and by 46 percent for the West Coast. The SAT, first given in 1901 by the Educational Testing Services, is now under the purview of the College Entrance Examination Board. The test had long been a favorite on both American coasts, although testing has become more nationwide in recent years.