Recently, we’ve talked a lot about education freedom. You may recall that education freedom empowers parents to choose the best educational opportunities for their child.
Among policies that promote education freedom, none are currently gaining more popularity than education savings accounts (ESAs).
What is an ESA?
K-12 education savings accounts, frequently referred to as “ESAs,” are taxpayer-funded accounts that are used for educational expenses, as directed by a student’s parents. These funds can be used for a range of educational expenses, including tuition and fees at private schools, textbooks, tutoring, educational therapies for special needs students, online courses, and other approved educational services. In a few states, ESAs can be used, to a limited extent, for homeschooling costs or transportation.
Robert Enlow, President and CEO of EdChoice, recently described ESAs at our annual policy summit, Unleash Mississippi. Watch below.
Who is eligible for an ESA?
Currently, six states have universal eligibility for ESAs, meaning every school-aged child in the state is eligible to participate. Some states have ESAs that are not universal, limiting eligibility by income or to individuals with learning disabilities, while others have enrollment caps or are subject to funding limits.
How do ESAs work?
The state transfers a predetermined amount of funding (typically an amount less than what the state would have spent on that child’s education in a public school) into an account held by the state that allows parents to direct how those education dollars are spent. It is important to note that parents cannot access these funds for any purpose other than the education of their child, and the funds may be spent only on approved educational services. This includes private school tuition and fees, textbooks and classroom materials, tutoring, educational therapies, online courses, and other similar services. Safeguards are put in place to prevent fraud and misuse of these funds, and audits of existing programs have found that these safeguards work well, with very few cases of fraud
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