Students First Education Savings Accounts

Students First Education Savings Accounts

Topics:

Educational Choice

The Students First Act, introduced by Governor Reynolds and signed into law on January 24, 2023, makes state funding available to support the success of every K-12 student in Iowa. The bill established a framework and funding for education savings accounts (ESAs), which may be used by eligible families to cover tuition, fees, and other qualified education expenses at accredited nonpublic schools in Iowa.

Iowa Administrative Code 281-20 specifies definitions for the program, eligibility requirements for participation, parameters for the application process, and program administration and accountability.

Back to top

Apply for Students First ESA

Application Help: help.ia@withodyssey.com or 515-368-9564

The Students First ESA Application is available in English and Spanish. The application window for the 2024-25 school year is open from 8:00 a.m. on April 16, 2024 through 11:59 p.m. June 30, 2024. Apply Now

Applying for the first time: Parents/guardians will first be directed to sign up with an email and password. Parents/guardians will receive a message from Odyssey asking them to confirm their email address. After the email is confirmed, the parent/guardian can sign in to the Odyssey portal to begin their application.

Returning applicants: Parents/guardians with an existing Odyssey portal account will log in to the existing account to begin the application for the 2024-25 school year.

Back to top

Program Overview

Parents who choose to enroll their eligible children in one of Iowa’s accredited nonpublic schools will receive an amount equal to the per pupil funding allocated to public school districts for the same budget school year. For the 2024-25 school year, the amount will be $7,826. Funds are held in an education savings account (ESA) to be used for tuition, fees, and other eligible qualified education expenses.

The state contracted with Odyssey for ESA program administration, including applications, financial transactions, compliance, fraud prevention and customer service. Odyssey securely administers funds and provides families with direct customer service and support.

Back to top

Program Eligibility

Students First ESAs are awarded based on the following eligibility:

School Year 2024-25

  • A student that was approved and used an ESA in the 2023-24 school year
  • A student entering kindergarten at an Iowa accredited nonpublic school
  • A student that attended an Iowa public school in the prior year
  • A student enrolled in an accredited nonpublic school with a household income at or below 400% of the 2024 Federal Poverty Guidelines, $124,800 for a family of four

School Year 2025-26

  • All Iowa resident K-12 students attending an Iowa accredited nonpublic school regardless of income
Back to top

Tips for Returning Families

  • Applications: 
    • Annual ESA applications are required for all prospective ESA participants.
    • A student who was approved for and used an ESA in the 2023-24 school year is not subject to household income requirements for the 2024-25 school year. 
    • Open: April 16, 2024
    • Close: June 30, 2024 
  • Funding amount: 
    • The ESA amount for the 2024-25 school year will be $7,826. 
    • ESA funds for the 2024-25 school year will be available beginning July 15, 2024, or 30 days after the application is approved, whichever is later.
  • ESA Balance from prior year: Funds remaining in an ESA from a prior year are eligible to be used in another year the student is an ESA participant.
  • School of Choice: The ability to select the school your child plans to attend in the 2024-25 school year will be available in the Odyssey portal immediately after an application is approved.
Back to top

Questions and Answers

Updated 3-20-24

Answers to frequently asked questions will be posted regularly on this webpage. Send your questions to studentsfirst@iowa.gov or call 515-954-5652.

Questions: Application

  1. When will the application be available for families to set up a Students First ESA?
    The Students First ESA Application will be available in English and Spanish. The application window for the 2024-25 school year is open from 8:00 a.m. on April 16, 2024 through 11:59 p.m. June 30, 2024.
  2. I have two students who will be attending an Iowa accredited nonpublic school in the 2024-25 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.

  3. How should I answer the question "Did this student attend an Iowa accredited nonpublic school in the 2023-24 school year” if my child only attended the nonpublic school for less than the full year or on a part-time basis?
    If a student attended an accredited nonpublic school in 2023-24, in any grade K-12, even for a single day or in a part-time program, the parent or guardian should say "Yes" to the question of whether or not the student attended an accredited nonpublic school in 2023-24. 

    If the student is enrolling in kindergarten for the 2024-25 school year, regardless of the grade they attended in 2023-24, mark “No” to the same question.

  4. Who sees my application information?
    Application information will only be viewed by parties necessary to complete the application verification and approval process, which includes Odyssey, the Iowa Department of Education and the Iowa Department of Revenue.
  5. How long will it take to know if my application has been approved?
    Applications that are able to be verified through the automatic review processes (e.g., verify through Iowa 2023 State Tax Return) should receive a response within 30 minutes of completion. Applications that require additional documentation to verify through a manual review will take additional processing time.
  6. If I identify the school my child plans to attend within the Odyssey system, does that mean my child is enrolled at that school?
    No. Applying for enrollment to an Iowa accredited nonpublic school is a separate process from applying for an ESA through the Odyssey portal. Identifying the school that the student plans to attend in the Odyssey portal has no bearing on whether the student will be admitted to that school. Nonpublic school enrollment is unrelated to the application and selection process, and is strictly between the family and the school.

  7.  What information do I need to set up an ESA for my child?
    Parents/Guardians applying will need the following information to apply for an ESA:

    • Parent/Guardian Legal Name

    • Parent/Guardian Contact Information (email address and phone number that can receive text messages for updates) and Preferred Language (English or Spanish)

    • Parent/Guardian Current Residential Address

    • Address used for the 2023 Iowa State Tax Return (if different from current address)

    • Parent/Guardian ID (Social Security Number or Individual Taxpayer Identification Number)

    • Parent/Guardian Spouse ID (Social Security Number or Individual Taxpayer Identification Number)

    • Student’s Legal Name

    • Student’s Date of Birth

    • Student’s Residential Address (if it is different from the parent/guardian address)

Questions: Eligibility

  1. What information will be used to verify Iowa residency?
    Proof of Iowa residency is based on the parent/guardian’s 2023 Iowa State Tax Return. If the parent/guardian did not complete a 2023 Iowa State Tax Return, additional documentation will be required. Details of approved documents to submit for residency verification are listed below.

    Approved Residency Verification Documents

    • Option 1: Current Iowa Driver's License
    • Option 2: Proof of Residence (current mortgage, lease, utility bill) and one of the following:
      • Iowa Voter Registration Card
      • Claim of Homestead Credit or Military Tax Exemption on a home in Iowa
      • Active checking or savings account with an Iowa address
      • Other documents and correspondence initiated during tax periods with an Iowa address
    • Option 3: Other written and signed narrative from parent/guardian explaining the situation including a stated claim of Iowa residency, and other related documentation reflecting residency.
  2. 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.
  3. Can I use ESA funds to pay preschool tuition for my child?
    No. ESA funds can only be used for students in kindergarten through 12th grade.
  4. My child was in an accredited nonpublic school Pre-K program during the 2023-24 school year. Will my child qualify for an ESA as an incoming kindergartener for the 2024-25 school year?
    Yes. As long as Iowa residency can be established, all incoming kindergarteners who are five years of age by September 15, 2024 are eligible for an ESA in the 2024-25 school year, regardless of income.
  5. If my kindergartener is eligible for an ESA for the 2024-25 school year, will a payment be received in the ESA again the following year when my child is in first grade?
    Annual ESA applications are required for all prospective ESA participants. A student who was approved and used an ESA in the 2023-24 school year is not subject to household income requirements for the 2024-25 school year. All Iowa resident K-12 students attending an Iowa accredited nonpublic school are eligible for an ESA in the 2025-26 school year.
  6. My student attended an Iowa public school in the 2023-24 school year and will be enrolling in an Iowa accredited nonpublic school for the 2024-25 school year. Is my student eligible for an ESA even if we are above the income level?
    Yes. ESA applications from all Iowa resident students who attended a public school in the 2023-24 school year and choose to enroll in an accredited nonpublic school for the 2024-25 school year are eligible and not subject to income requirements.
  7. Our children already attend an accredited nonpublic school. When are they eligible for an ESA?
    For the 2024-25 school year, ESA applications from students in families with household incomes at or below 400% of the federal poverty level (FPL) are eligible. See question 9 for household size and income requirements.

    Beginning in the 2025-26 school year, ESA applications from any Iowa resident K-12 student attending an accredited nonpublic school, including those who previously attended an accredited nonpublic school, are eligible for an ESA regardless of household income.
  8. My children attend an Iowa accredited nonpublic school and we receive tuition assistance from a STO. Are we also eligible for an ESA?
    ESA eligibility is not dependent upon STO eligibility.

  9. How do I know if my family meets the income requirements to be eligible for the ESA?
    In the 2024-25 school year, only families whose children were enrolled in an Iowa accredited nonpublic school in the 2023-24 school year but did not receive and use an ESA will need to meet income eligibility requirements. Families with a household income at or below 400% of the 2024 Federal Poverty Guidelines are eligible. See matrix below.

    Students First ESA Income Eligibility for 2024-25 School Year
    Persons in Family/
    Household Size    		Poverty Guideline400% of
    Poverty Guideline
    1$15,060$60,240
    2$20,440$81,760
    3$25,820$103,280
    4$31,200$124,800
    5$36,580$146,320
    6$41,960$167,840
    7$47,340$189,360
    8$52,720$210,880
  10. How is “household” defined?
    Household is defined in Iowa Administrative Code 281-20(1) as 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, by 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, additional information may be requested to determine eligibility.
  11. What line on my Iowa tax form is used to identify household income when determining eligibility for an ESA?
    For the 2024-25 school year, household size and income will be based on information reported on line 4 of the Iowa 2023 1040 tax form.
  12. My family just moved to Iowa. Are my students eligible for an ESA?
    Yes. As long as Iowa residency can be established by the June 30 application deadline. If the student attended an Iowa accredited nonpublic school in the prior year, income requirements will also need to be met.
  13. We live in Council Bluffs, near the Nebraska border. Can my student use their ESA funds to attend an accredited nonpublic school in Omaha since it’s close to our home?
    No. Eligibility for the ESA program is limited to Iowa residents attending an Iowa accredited nonpublic school.
  14. I am a current resident of Iowa but did not file a 2023 Iowa State Tax Return. Are my students eligible for an ESA?
    Applications that are not able to be verified through the automatic review process will require additional documentation to verify proof of residency and/or income requirements.
  15. My student was homeschooled in the 2023-24 school year and will be enrolling in an Iowa accredited nonpublic school for the 2024-25 school year. Is my student eligible for an ESA?
    Yes. Applications from an Iowa resident student that participated in homeschooling in the 2023-24 school year are eligible for an ESA regardless of income as long as they are enrolled as a full-time student at an accredited nonpublic school.
  16. My student is switching schools in the middle of the semester. Will I still be able to use funds in the ESA?
    If the student plans to switch schools in the middle of the semester from an Iowa accredited nonpublic school to a public school or homeschool, the unused funds will remain in the ESA and can be used in a future year if the student becomes eligible for an ESA again. 

    If the student is switching from one Iowa accredited nonpublic school to another Iowa accredited nonpublic school and there are remaining funds in the ESA, funds may continue to be used as long as the student remains enrolled in the new accredited nonpublic school.
  17. How will this work if my child lives in a split household?
    It is the responsibility of the parents/guardians to determine the correct person to complete the application and manage the ESA funds. The first parent/guardian to apply who meets the eligibility requirements will be the parent/guardian under which the ESA is established. For an application to be contested, court documents supporting the contesting person’s position as the parent/guardian that has education making authority are required for consideration.

    Note: The percent of custody or parenting time does not determine the parent/guardian who has the authority for educational decisions.
  18. My family is moving within Iowa. Are my students eligible for an ESA?
    Moving within Iowa does not affect eligibility. The same program eligibility requirements apply.
  19. Do both parents/guardians have to complete the form, or does the Iowa Department of Revenue verify through joint tax returns?
    Only one application per family is needed to apply for the ESA program. For married applicants, the SSN or ITIN of each spouse is required for the application. Both applicants will be required to electronically sign the application.
  20. What information will be used to verify income restrictions if the application was not able to be approved through the automatic process?
    Income verification is only required for students who attended an Iowa accredited nonpublic school in the 2023-24 school year who did not receive and use an ESA. A student that attended a nonpublic school in 2023-24 that will be in kindergarten in 2024-25 does not have to meet income requirements.

    If the parent/guardian did not complete a 2023 Iowa State Tax Return, additional documentation will be required. Examples of approved documents to submit for income requirement verification are listed below.
    • Option 1: Proof of enrollment in an Iowa program that has an income eligibility component below the income threshold.
      • Eligible programs: SNAP, child care assistance, cash assistance, or Iowa Medicaid
      • Required documentation: Iowa HHS Notice of Decision or image of SNAP card with matching parent name
    • Option 2: Written and signed narrative stating claim of net income and household size, and most recent pay stub for both parents/guardians and letter from each employer verifying annual income for the employee
    • Option 3: State or Federal 2023 Tax Return 
    • Option 4: If the information above is not available: Other situation requires (1) written and signed narrative of situation from parent/guardian, (2) stated claim of net income and household size, and (3) related documentation proving net income and/or household size (e.g., divorce decree in the case of divorce, unemployment letter in the case of unemployment).

  21. Will ESA Funds need to be reported as taxable income?
    For Iowa tax purposes, ESA funds are not taxable income if the funds are used for eligible educational expenses (e.g., tuition and fees, tutoring). See Eligible and Ineligible Expenses.

    For federal tax purposes, ESA funds are treated differently. ESA funds used for tuition and fees are not taxable. However, ESA funds used for other purposes are considered taxable. 

Questions: Funds

  1. When can I begin using the ESA funds?
    Funds will be available for use beginning on July 15, 2024, or 30 days after the application is verified and approved, whichever is later.
  2. How much will my student receive?
    The per student funding for the 2024-25 school year will be $7,826. Half of the funds ($3,913) will be available for use in the Fall 2024 semester and the remaining half will be available for use in the Spring 2025 semester.
  3. I have a child that will be in kindergarten in the fall. The amount of her tuition and fees is less than the amount of the ESA funding. Can I use the remaining funds from her ESA to pay tuition and fees for one of my other children?
    No. ESA eligibility and funding awarded is specific to each individual student. ESA funds from one account may not be used to pay for costs related to another student, regardless if that student is also an ESA participant.

  4. My student paid tuition and fees and still has funds in their ESA. How can those funds be used? After tuition and fees are paid each semester, remaining ESA funds of active ESA participants may be used in the marketplace to pay for eligible expenses. See a list of eligible expenses in the “Information for Families” section.

  5. There is money remaining in my child’s ESA from the 2023-24 school year and he is approved for the 2024-25 school year also. How can I use the leftover funds for 2024-25?
    Funds remaining in an ESA from a prior year are eligible to be used in another year the student is an ESA participant. After July 15 of a school year, the funds may be used as soon as a nonpublic school verifies the student in the Odyssey portal as an active participant, in either the marketplace to pay for eligible expenses or to use to pay tuition and fees as charged by the nonpublic school through the Odyssey portal. See a list of eligible expenses in the “Information for Families” section.

Back to top

Information for Families

Back to top

Sign up for ESA Notifications

This webpage is updated and notifications sent when new information is available about Students First ESAs. 

Sign up to receive email notifications about Students First ESAs.

Back to top

Information for Accredited Nonpublic Schools

Back to top

Information for Vendors

Funding generated through the state funding formula for a public school district will remain with the public school district. This includes funding for students who choose to leave their public school and for all students who live in the district but attend an accredited nonpublic school and receive an ESA. In FY25, it is estimated that Iowa’s public school districts will receive approximately $1,205 per pupil in categorical funding for resident students receiving ESAs.

Back to top