Families can now apply for Iowa's new $7,600 ESA for private school costs. Here's how:

Stephen Gruber-Miller, Des Moines Register
Updated ·5 min read
4

Iowa families can now apply for the state's new education savings account program to receive thousands of dollars to pay their students' private school costs.

The state began taking applications at 8 a.m. Tuesday, and families have until June 30 to apply for the new program.

Gov. Kim Reynolds made "school choice" the centerpiece of her legislative agenda this year, signing a sweeping law that will provide families with about $7,600 per student in an education savings account to pay private school costs.

"I believe education is the great equalizer, which is why it was so important to remove the boundaries that have existed between public and private schools for too long, and to ensure that families can send their children to the school of their choice," Reynolds said Wednesday in a video announcement.

From January: Jubilant Kim Reynolds signs Iowa's seismic 'school choice' bill into law. What it means:

Democrats have criticized the program for diverting taxpayer money that could be used for public schools.

"Iowans are overwhelmingly opposed to vouchers because public money is for public schools and they do not want more public schools to close," House Minority Leader Jennifer Konfrst, D-Windsor Heights, said in a statement Wednesday.

The state's budget for the coming fiscal year includes $107 million to fund the scholarships, and the new law is expected to cost the state $345 million annually once it's fully phased in.

The state hired Odyssey, a New York-based company, to administer the program at a cost of $730,000 per year.

Here's what to know about how the program works, who is eligible and how to apply:

Who is eligible for Iowa's education savings accounts?

All incoming Iowa kindergarteners are eligible for education savings accounts for the 2023-24 school year if they will be attending an accredited private school.

Anyone switching from public school to an accredited private school is eligible for an ESA in the 2023-24 school year.

Current private school students whose families have a household income at or below 300% of the federal poverty guidelines are eligible for ESAs in 2023-24. That's about $90,000 for a family of four.

In the 2024-25 school year, private school students will be eligible for ESAs if their household income is at or below 400% of the federal poverty guidelines.

Beginning in the 2025-26 school year, all Iowa students will be eligible for ESAs regardless of family income.

How long does the application period last?

The state began taking applications for education savings accounts at 8 a.m. May 31.

Families can find the link to apply on the Iowa Department of Education's website, educateiowa.gov.

Applications are due by June 30.

The first date that approved ESAs will be funded is July 15.

Once approved, students will be eligible for the funds each year if they are enrolled in an accredited private school until they graduate or the student turns 20, according to the state's website.

Parents or guardians must reapply each year to continue receiving the benefit.

Families with multiple children only need to fill out one application.

How to apply for Iowa's education savings account program

Families can find the application link on the "Students First Education Savings Accounts" page of the Department of Education's website, educateiowa.gov.

To apply, families will need to provide:

  • A parent or guardian's legal name

  • An email address

  • A phone number

  • Their preferred language

  • Their current address (or the address on their 2022 Iowa state tax return, if different)

  • The student's legal name

  • The student's date of birth

  • The student's address, if different from the parent's

  • School information for the 2022-23 school year

Parents will need to provide their tax identification number or Social Security Number. Married couples who filed their taxes jointly will be required to provide the information for both spouses.

Parents also need to confirm that they have the legal authority to request an ESA for their student and to attest that the student they are applying for has not been claimed on another application.

Then they'll select one or more methods Odyssey can use to communicate with them about their application, such as text, email or phone calls.

In most cases, Odyssey will work with the Iowa Department of Revenue to use families' 2022 Iowa tax return to verify their residency and incomes.

Families who didn't file a 2022 Iowa tax return may have to provide additional documentation.

What can families spend their education savings account funds on?

Money in a student's education savings account must first be used to pay for tuition and fees at an accredited private school.

If any money is left over after tuition and fees, families may use the funds for qualifying expenses such as textbooks, tutoring, laptops or tablets, approved software like Microsoft Word, standardized test fees, online education programs and vocational and life-skills training.

The money cannot be used for items such as school uniforms, backpacks, computer accessories, art supplies, writing utensils, transportation costs or camps, according to a guide posted on the Iowa Department of Education's website.

Families can only use their ESA funds to make purchases through the Odyssey Marketplace — a "closed marketplace" that lists preapproved vendors, products and services eligible for state funds, according to the company's training materials.

Any purchases made outside the company's marketplace will not be reimbursed, Odyssey says.

Where can families go if they have questions?

The Iowa Department of Education has a website with a list of frequently asked questions. It can be found at https://educateiowa.gov/pk-12/students-first-education-savings-accounts.

The website also includes links to archived videos of online training Odyssey offers to walk families through the application process. The site includes videos in English and Spanish.

Odyssey has been offering a series of online training for families to walk them through the application process. An archived version is available online. Odyssey also recorded a Spanish language version of the presentation, which is available online.

Families can also register for upcoming training on June 5 at 11 a.m. and June 7 at 7 p.m.

For help with the ESA application, families can call (515) 368-9564 or email help.ia@withodyssey.com.

For questions about the ESA program, families can call the Iowa Department of Education at 515-954-5652 or email studentsfirst@iowa.gov.

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.

This article originally appeared on Des Moines Register: Families can now apply for an Iowa ESA to pay for private schools