College admissions are undergoing a major consolidation. The educational nonprofit ETS has acquired ACT, putting two of the country's largest testing organizations under one roof. This merger comes as many prominent universities reverse their pandemic-era test-optional policies.
What Happened
According to Higher Ed Dive, ETS approached Nexus Capital Management to buy ACT, which had recently transitioned to a for-profit model. The combined organization will reach 35 million people annually. This brings together ETS's graduate-level assessments like the GRE and TOEFL with the ACT high school college-entrance exam. While some educators worry about the consolidation of testing power, testing experts note that no immediate changes will affect students currently preparing for the ACT. The acquisition also includes WorkKeys, a career-readiness credential program.
The Bigger Picture
This corporate shift occurs alongside a national return to standardized testing requirements. Elite universities are leading the change. For example, Yale University reinstated its testing requirement after finding that standardized test scores are strong predictors of student success. Columbia University also announced it will require test scores starting in the 2027-28 admissions cycle, matching decisions by Dartmouth and Brown.
Public universities are also shifting back. The University System of Georgia has reinstated testing requirements at several campuses, while universities like Auburn and Ohio State have returned to mandatory testing.
Grade inflation is a primary driver behind these reversals. Research from Summit Prep indicates that the percentage of high school seniors reporting an 'A' average rose from 21.8% in 1966 to 84% in 2024. This change makes grades alone a less reliable measure of academic preparation. However, the predictive value of these tests remains debated. A University of California task force found that test scores and high school GPA combined offer the best predictive power. In contrast, other studies of large urban public university systems show that high school GPA is a far stronger predictor of six-year graduation rates than SAT or ACT scores.
What This Means for Families
Despite the acquisition, families should expect testing operations to run normally. However, admission policies are changing quickly. As we previously reported, schools are already consolidating educational tools to combat software bloat, and this testing merger follows a similar pattern. With more colleges requiring exams, students can no longer assume they will bypass the ACT or SAT. High school counselors should prepare for a rise in test prep demand, and parents must budget and plan testing schedules earlier in high school.
What You Can Do
- Check university-specific policies early. Requirements are changing quickly, so check the admission portals of target schools to see if they require or recommend test scores.
- Address grade inflation with test scores. If your child attends a school with high average GPAs, a solid standardized test score can validate their academic readiness for highly selective colleges.
- Utilize free preparation resources. Because the test structure remains unchanged, existing preparation materials from both ACT and third-party platforms are still fully aligned with the exam.