- The eligible family receives funds with allotted funds for their child’s education. Eligibility is determined by the state.
- The family uses the funds for approved educational expenses and submits the receipts to the approved administrative agent for quarterly audits. The funds can be used only with vendors approved by the state. Those may include, but are not limited to, accredited and licensed therapists, tutors, and approved private schools. (In some states, parents access the accounts through reimbursement to an approved administrative agent or an online portal, instead of a debit card.)
- Families may roll over funds quarterly, and any unused funds at the end of the year can be used the following year. (Parents may place unused funds into a college savings account upon their child’s high school graduation to use toward college tuition for a four-year time block.)
Watch the short, animated video below to see how ESAs work for families.
From Education Savings Accounts, EdChoice