Unlike many other countries' education systems, there are substantial differences in teaching methods and curriculum among U.S. secondary schools, both in regards to high schools in separate states and between high schools in the same state (see Education in the United States). The variability results largely from the American principle of federalism, whereby local jurisdictions have most of the control over school systems, and the tax system in the U.S., in which school districts are funded locally as well. Wealthier jurisdictions enjoy higher tax revenue, and as a result their public schools are better funded.

These differences make it difficult for universities to compare prospective students in an effort to identify and admit the most deserving and promising candidates. In the absence of centralized secondary education school exit exams (such as the French Baccalaureate, Irish Leaving Certificate, or British A-levels), there is a need in the U.S. for some sort of standardized tests. U.S. universities use tests such as the SAT and the ACT as a way of assessing students coming from schools using different class ranking or grading systems.

The tests are generally taken by high school students or graduates wishing to progress to higher education, though they are available to anyone. Test results of applicants are provided to colleges and universities identified by the student. Although admission criteria to these universities also includes GPA, teacher recommendations, and participation in extracurricular activities, some colleges have a threshold score that automatically qualifies or disqualifies a candidate for admission. Scores on the SAT are also sometimes used as a criterion for the awarding of many academic scholarships (see also PSAT)

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