Students First Education Savings Accounts
The Students First Act, introduced by Governor Reynolds and signed into law on Jan. 24, 2023, makes state funding available to support the success of every K-12 student in Iowa. The bill establishes a framework and funding for education savings accounts, which may be used by eligible families to cover tuition, fees, and other qualified education expenses at accredited private schools in Iowa.
The following link will take you to the application https://educateiowa.gov/pk-12/students-first-education-savings-accounts?utm_medium=email&utm_source=govdelivery#Apply_for_Students_First_ESA
How it Works
Parents who choose to enroll their eligible children in an accredited private school will receive an amount equal to the per pupil funding allocated to public school districts for the same budget school year. Funds will be deposited into an education savings account (ESA) to be used for tuition, fees, and other qualified education expenses as specified in the legislation.
The state has signed a contract with Odyssey to manage program administration for Students First Education Savings Accounts, including applications, financial transactions, compliance, fraud prevention and customer service. Odyssey was selected through a competitive bid process based on its ability to securely administer funds, provide families with direct customer service and support and offer the state real-time insight into the program’s effectiveness.
The Office of the Governor, Department of Education, Department of Management, and Office of the Chief Information Officer are working with Odyssey to implement the technology platform. The state plans to begin taking applications May 31, 2023 and a link will be provided. Applications will be due on June 30, 2023, for the 2023-2024 school year.
Who is Eligible
Students First ESAs will be available based on the following eligibility:
Year 1: School Year 2023-24
- All entering kindergarten students
- All students enrolled in a public school
- A student enrolled in a private school with a household income at or below 300% of the 2023 Federal Poverty Guidelines, $90,000 for a family of four
Year 2: School Year 2024-25
- All entering kindergarten students
- All students enrolled in a public school
- A student enrolled in a private school with a household income at or below 400% of the 2024 Federal Poverty Guidelines that will be updated January 2024
Year 3: School Year 2025-26
- All K-12 students in Iowa regardless of income
Categorical Funding
Other student funding generated by categorical funding formulas will remain with public school districts. This will include funding for students who choose to leave their public school, and for all students who live in the district but attend a private school. It’s estimated that Iowa’s public schools will receive approximately $1,205 per pupil in categorical funding for students enrolled in private schools.
How to Apply
The application process is in development now with plans to begin taking applications May 31, 2023 and a link will be provided. Applications will be due on June 30, 2023, for the 2023-2024 school year. Applications are valid for one year; a family must apply annually to remain eligible for the program.
Questions and Answers
Updated: 5-4-23
Answers to frequently asked questions will be posted regularly on this webpage. Send your questions to [email protected] or call 515-281-5211.
Application
When will the application be available for families to set up a Students First ESA?
We will provide a link to the application on this webpage starting May 31. Applications will be accepted through June 30, 2023.
I have two students who will be attending an Iowa accredited nonpublic school in the 2023-2034 school year. Do I have to create an application for each student?
No. Only one application per family is needed. Parents/guardians can add multiple students from their household onto their application.
Eligibility
Does my student need to be enrolled full time?
Yes. Students must be enrolled full time at an accredited nonpublic school and attend classes for at least 75 percent of the full-time schedule.
For the first year, only families whose children were enrolled in an accredited nonpublic school during the 2022-23 school year will need to meet income eligibility requirements. Families with a household income at or below 300% of the 2023 Federal Poverty Guidelines are eligible. See matrix below.
|
Persons in Family/Household |
Poverty Guideline |
300% of Poverty Guideline |
|
1 |
$14, 580 |
$43,740 |
|
2 |
$19,720 |
$59,160 |
|
3 |
$24,860 |
$74,580 |
|
4 |
$30,000 |
$90,000 |
|
5 |
$35,140 |
$105,420 |
|
6 |
$40,280 |
$120,840 |
|
7 |
$45,420 |
$136,260 |
|
8 |
$50,560 |
$151,680 |
Note: The income limitation only applies if the student attended an Iowa accredited nonpublic school in the 2022-2023 school year.
On the 2022 Iowa 1040 tax form, line 26 (“Net Income”) is used to identify household income…
How is “household” defined?
“Household” means the number of people who reside together and who are related by birth, marriage, adoption, legal guardianship or by placement in the home through a state agency. Household includes parents, student applicants, and other children who share at least one parent by birth, adoption, by a parent’s current marriage or by placement in the home through a state agency. A parent on military duty is considered to be residing in the household. If “household” cannot be clearly determined through review of the submitted tax return, the department director has authority to request additional information and determine eligibility.
What information will be used to verify Iowa residency?
Iowa residency will be based on the parent / guardian’s 2022 Iowa tax return. If the parent / guardian did not complete a 2022 Iowa tax return, additional documentation, such as a lease agreement or utility bill reflecting an Iowa residence, will be required.
How will this work if my child lives in a split household?
The first parent or guardian to apply who meets the eligibility requirements will be the parent or guardian under which the ESA is established. For an application to be contested, court documents supporting the contesting person’s position are required for consideration.
Note: The percent of custody or parenting time does not determine the parent or guardian that has the authority for educational decisions.
Can I use ESA funds to pay for preschool tuition for my child?
A: No. ESA funds must be used for kindergarten through 12th grade education at an accredited private (nonpublic) school in Iowa.
My daughter is in a private Pre-K program this year. Will she qualify for an ESA as an incoming kindergartener this fall?
Yes. All incoming kindergarteners are eligible for an ESA in the 2023-2024 school year regardless of income. ESA funds must be used for an accredited private (nonpublic) school in Iowa.
If my kindergartener is eligible for an ESA this upcoming school year, will he receive a payment in his ESA again the following year when he’s a first grader?
Yes. Once an ESA account is established for a student, funds will be deposited into the account each year as long as they are enrolled in an accredited private school and until the student graduates from high school or turns 20 years of age. Families are required to apply annually to remain in the program.
My kids are currently in a public school. Do they qualify for an ESA next school year even if we are above the income level?
Yes. All students who currently attend a public school and choose to enroll in an accredited private school for the 2023-2024 school year are eligible regardless of household income.
Our children already attend a private school. When are they eligible for an ESA?
ESA eligibility for students who are currently enrolled in an accredited private school is based on household income during the first two years of the program. For the 2023-2024 school year, families with household incomes at or below 300% of the federal poverty level (FPL) are eligible. The level increases to at or below 400% FPL for the 2024-2025 school year. Beginning in 2025-2026 school year, all K-12 students who already attend an accredited private school are eligible for an ESA regardless of household income.
We are a family of six with three of our children currently attending a private school. What income amount applies for us to be eligible for an ESA next school year?
Income eligibility will be determined using the current year’s federal poverty level (FPL) guidelines. The 2023 FPL guidelines were updated on Jan. 19, 2023. For the 2023-2024 school year, families making at or below 300% FPL will be eligible to receive an ESA for their children who currently attend an accredited private school. The following school year, families making at or below 400% FPL will be eligible.
My children attend a private school and we receive tuition assistance from a STO. Are we also eligible for an ESA?
Yes. You can receive an ESA in addition to other tuition assistance that may be available to your family.
We live in Council Bluffs, near the Nebraska border. Can my kids use their ESA funds to attend a private school in the Omaha area since it’s close to our home?
No. ESAs provided by the state of Iowa can only be used to attend accredited private schools located in the state of Iowa. The funds cannot be used to attend a private school in another state.
We homeschool our children. Are they eligible for an ESA if they enroll to take 1-2 classes at an accredited private school?
No. Students must be enrolled full time in an accredited private school to be eligible for an ESA.
Our children are currently homeschooled. If we move them to a private school next year, are they eligible for an ESA?
Yes, they would be eligible for an ESA regardless of income as long as they are enrolled as a full-time student at an accredited private school.
Can an ESA be used to attend an online private school?
Yes. However, the student must be enrolled full time, and the online private school must be accredited through the Iowa Department of Education.
Funding
How much will my student receive?
Parents/guardians who choose to enroll their eligible children in an accredited nonpublic school will receive an amount equal to the per pupil funding allocated to public school districts for the same budget school year for each eligible child. The per pupil funding for the 2023-24 school year will be $7,635. Half of the funds ($3,817.50) will be available to pay tuition and approved expenses that occur during the fall 2023 semester and the remaining half will be available for the spring 2024 semester.