What is Credit-By-Exam (CBE)?

Credit-by-exam (CBE) lets you “test out” of specific college-level courses you already know. Instead of spending time and money in a classroom, you take a single exam — passing it earns you college credit at participating institutions. Although this approach can save you tuition costs and accelerate your degree path, it’s not a one-size-fits-all solution. Below, we’ll examine how CBE works, which providers offer these exams, and how StraighterLine compares as a more flexible alternative for earning college credit online.

How Does Credit-by-Exam Work?

At its core, CBE is designed for students who can demonstrate subject mastery — whether through self-study, work experience, prior learning, or intense preparation. Here’s the basic process:

1. Select the Exam: Choose which subject area aligns with a course you’d otherwise need to take at college.

2. Register & Pay: Sign up with the testing provider and pay their exam fee (often between $90–$100).

3. Study & Prepare: Brush up on the material. You might use textbooks, online resources, or your own knowledge from personal or professional experiences.

4. Take the Exam: Complete the test either online (if offered) or at a designated testing center.

5. Score & Credit Transfer: If you pass with the required score, your chosen college may grant you credit — cutting out the need to take that full semester-long course.

This process can be a huge advantage if you’re confident in your knowledge. However, acceptance of these credits isn’t guaranteed — each institution sets its own rules about which exams they recognize and what minimum scores they accept.

Popular Credit-by-Exam Providers

There’s no single CBE provider that works for everyone. Different organizations offer exams in a variety of subjects, formats, and price points. Plus, the policies at each college or university will vary. Here’s a quick comparison:

Pro Tip: Always confirm with your academic advisor or registrar’s office that your desired exam will be accepted before you spend time and money prepping.

CLEP: A Snapshot

• What It Is: The College-Level Examination Program, run by the College Board.

• What It Offers: 34 exams in subjects like Composition, Math, Science, and more.

• Cost & Retest Policy: $90 per exam; wait 3 months to retest if you don’t pass.

• Acceptance: Policies vary by school; verify minimum scores your target institution requires.

• Testing Style: Multiple-choice, sometimes essays

• Who It’s Best For: Students with a solid background in high school or independent study, or those who’ve gained relevant knowledge through work experience

The College-Level Examination Program® (CLEP) is offered by the College Board, a non-profit organization. They offer 34 tests in five subjects for $90 per exam. Colleges and universities set their own policies concerning whether they accept CLEP exam results and, if so, the minimum score they will accept.  Exams are offered at official CLEP testing centers around the country or online via remote proctoring. Failure to pass a CLEP exam requires a three-month waiting period before you can retest.

DSST: A Closer Look

• What It Is: Defense Subject Standardized Tests, historically used by military personnel but open to civilians.

• What It Offers: 37 exams in six broad subject areas, including Social Sciences, Math, and Business.

• Cost & Retest Policy: $100 per exam; wait 30 days to retest if you don’t pass.

• Acceptance: Individual colleges set their own acceptance policies and required scores.

• Origin: Developed for military personnel but open to civilians

• Key Benefit: You can often take these tests online, but check for test center availability in your area

The Defense Subject Standardized Test (DSST) is another exam company that offers both in-person testing at designated facilities as well as online proctored testing. There are 37 exams in six subjects for $100 per exam. Failure to pass a test with DSST requires a 30-day waiting period to retest. As with CLEP, your chosen school will have its own policies regarding accepting DSST credits and scores.

AP: Advanced Placement in High School

• What It Is: College-level coursework typically taken in high school.

• What It Offers: 38 subjects, ranging from Art History to Calculus, with an end-of-year exam.

• When It’s Offered: Usually to high school juniors and seniors

• Acceptance: Most colleges require at least a 3 on a 5-point scale to award credit.

• Cost & Format: $97 per exam; includes a year-long (or semester-long) advanced course in high school

• Retest Policy: $97 per exam; retest only possible the following year.

Advanced Placement® (AP) classes are generally offered to students in high school. These are college-level courses that can be taken in place of regular high school-level classes during the school day. Students may start taking AP classes as early as 9th grade. There’s no extra cost to take an AP class at school. At the end of your AP class, you’ll be administered an exam, which costs $97 per course. Most colleges and universities will not accept a score lower than a 3 on the exam (which equates to a C grade) when transferring the course for credit. Exams may be repeated the following year. As always, check with your chosen college or university’s AP exam policies to find out which courses to take and what minimum passing score you need.

University Challenge Exams

• What They Are: Exams offered directly by a specific college or university for certain courses.

• Pros: May help you skip a class if you show proficiency.

• Cons: Not always a direct credit award. Some schools only let you bypass the class but still require you to earn those credits elsewhere.

• Main Caveat: Some schools might only allow you to skip the course rather than actually earning credit. Make sure you’ll still get the credit hours you need to graduate.

How Is Credit Awarded with CBE Testing?

Here’s where things can get a bit tricky. Each college or university has its own policy on if — and how — they accept credit-by-exam. Some institutions might:

• Only Recognize One Provider: They might take CLEP but not DSST, or AP but not CLEP.

• Require a Specific Score Threshold: A college might need a CLEP score of at least 50, while another school might want a 55.

• Limit the Number of Credits: You may only be allowed to apply a certain number of CBE credits toward your degree.

• Reject CBE Entirely: A handful of institutions don’t accept any form of test-based credits at all.

Bottom line? Always talk to an advisor at your target institution to verify their policies. Doing your homework first can save you the frustration of paying for an exam that won’t actually help you graduate any sooner.

When Credit-by-Exam Might Fall Short

While CBE can be a big time-saver, it has certain drawbacks:

• Waiting Periods for Retakes: If you fail, you often must wait 30 to 90 days (or even a full year for some AP courses) before you can try again.

• High-Stakes Test: You have just one exam to prove mastery of the entire subject. If you don’t test well under pressure, CBE can be risky.

• Limited Support & Resources: Many CBE programs leave studying entirely up to you. If you need tutoring or academic guidance, you’ll have to find and pay for it separately.

Why StraighterLine May Be a Better Option

StraighterLine isn’t a test-out model but an online course provider that offers a full learning experience — quizzes, assignments, instructor resources, and a proctored final exam. Here’s why it might fit your goals better than CBE:

1. No Strict Retest Waiting Period
   If you don’t pass a course on your first try, you can re-enroll without waiting months or losing valuable time.

2. Guaranteed Transfer Agreements
   StraighterLine partners with 180+ colleges and universities, guaranteeing your credit transfer. Plus, 3,000+ institutions have accepted StraighterLine courses through ACE CREDIT®.

3. Affordable, Transparent Pricing

   • $99 monthly membership + $79 per course 

   • Free eTextbooks, tutoring, and 24/7 student support included.

4. Flexible, Self-Paced Learning
   You’re not tied to a strict exam date. Study on your schedule and move faster — or slower — depending on your comfort level.

5. Full Course Experience
   Instead of a single high-stakes test, you’ll engage with the subject matter through graded assignments, interactive lessons, and final exams that ensure you truly grasp the material. We offer over 75 courses in various subject areas.

Comparing CBE & StraighterLine

Ready to Save Time and Money?

If you’re uncertain about CBE, or if your target school’s policies seem complicated, StraighterLine can give you a clear, supported path to earning college credit. Get a sneak peek at what’s inside with our free course preview!

Don’t let traditional tuition prices or confusing credit-by-exam policies hold you back — speak with one of our Enrollment Specialists today, or check out our course catalog to see how you can jump-start your degree on your schedule, with total confidence in your credit transfer.