Various credit transfer options are available to help individuals receive credit for what they know. Credit by exam is a process that allows students to earn college credit typically by taking subject-specific tests.

• At the K-12 level, credit by exam (CBE) is a method for individuals to demonstrate proficiency in grade level or course content (often at the K-12 level). Some state policies (for example, the Texas Education Code -TEC- §28.023) allow students to accelerate a grade level or to earn credit for a course based on credit by examination. Credit-by-examination assessments (CBEs) are typically approved by a local school district board of trustees for their district. CBEs are administered by the district or test provider in accordance with local district policy. Scores are reported directly to the school district and/or student.
• At the higher education level, some higher education institutions offer their own challenge exams. These exams are known by terms such as institutional exams, credit by exam, departmental exams, or proficiency exams. The assessment process provides academic departments the flexibility to tailor exams to fit specific course curricula, give program faculty confidence the exams reflect an appropriate level of academic rigor, and provides faculty direct control of the assessment process.
• An intermediary, the College-Level Examination Program® (CLEP) helps individuals receive college credit for what they already know. CLEP offers 34 exams that cover introductory level college course material. Exams are available in History and Social Science; Composition and Literature; Science and Mathematics; Business; and World Languages. Exams cost around $100 (exam plus test center's administration fee). This amount is commonly used to compare to the cost of a college course. For military service members, the exam cost may be free. More than 2,900 U.S. colleges and universities award credit for CLEP. A college’s CLEP credit policy explains which CLEP exams are accepted by the institution, what CLEP score is needed to receive college credit, and how many credits are awarded for a particular CLEP exam. The policy may also include other guidelines, such as the maximum number of credits a student can earn through CLEP. With a passing score on an CLEP exam, an individual could earn 3 or more college credits at many U.S. colleges and universities.
• Some third-party organizations offer courses of study that can result in individuals receiving credit transfer from a higher education institution when they successfully complete the course. Courses are evaluated by intermediaries such as the American Council on Education or National College Credit Recommendation Service (NCCRS). Over 1,500 accredited institutions in the U.S. accept credit earned by passing a course that is pre-approved (recommended) by ACE or NCCRS. The courses are evaluated for quality by a team of university faculty and since each course has been successfully evaluated, they can be recommended for credit transfer.
  • The American Council on Education (ACE) evaluates nontraditional forms of learning for transfer credit recommendation. Thousands of colleges and universities in the U.S. use ACE recommendations to determine transfer course equivalencies to their institutions.
  • The National College Credit Recommendation Service (NCCRS) evaluates non-collegiate learning experiences for possible college credit recommendations. Their mission is to provide access to a variety of educational opportunities to nontraditional students and adult learners by recognizing learning that occurs outside of the college classroom. NCCRS evaluated courses undergo extensive review to ensure academic rigor and high instructional quality. College professors (serving as subject matter experts) determine if the courses are equivalent to similar college level courses and if credit recommendations are warranted.