Arizona Empowerment Scholarship Account (ESA)
ESA is a program that allows eligible Arizona families to receive public funding for their children’s education by using it for various educational expenses outside of the traditional public school system. This includes things like private school tuition, online education, tutoring, and other approved educational services.
ESA and STOs have no affiliations other than they both help families pay for Arizona students educations.
Saving recommended funds while on ESA!
Yes it is possible to save STO Recommended Funds while your child is on ESA, starting in kindergarten! Many families that do this are better prepared for the higher tuition of middle school and high school.
Follow the flow chart to see if your child qualifies.
ESA VS. STO
Given your unique individual situation ESA or STO scholarships might be a better fit for your child. Use the flowchart to help you decide.
ESA FAQ’s
Can I use scholarships funded through School Tuition Organizations (STOs) at the same time as Empowerment Scholarship Account (ESA) funds?
No. ESA law prohibits families from accepting both funding sources at the same time. Different funding sources may be used in separate quarters. *Additional eligibility requirements exist.
Can I use Recommended Funds (tax credit donations) along with ESA funds?
No. Any and all scholarships funded through STOs are scholarships and may not be accepted while in an active ESA contract.
Do I need to cancel my ESA contract to accept STO funds?
If the student plans to accept STO funds in the same calendar year there is an active ESA contract, the ESA contract must first be cancelled. IBE requires proof of ESA cancellation.
If the student plans to accept STO funds in the school year following an active ESA contract, the ESA contract must first be either cancelled or not renewed by the parent. IBE requires proof of ESA cancellation or non renewal.
I am separated from my child(ren)’s other parent who has accepted ESA. Can I use scholarships?
No. Because the scholarship or ESA funding is given to the child, not the parent, only one funding source may be used.
What documents do I need to submit if my child is transferring from ESA to STOs?
A copy of the ESA cancellation email must be provided for all children along with IBE’s Transfer Verification. If requesting STO funding within the same ESA quarter your contract was cancelled in, IBE also requires a Class Wallet transaction journal that shows funds paid.
Do I need to submit any documentation with my application if my student is on ESA?
No. Confirmation of a student’s continued use of ESA while continuing to solicit Recommended Funds through IBE is all that is needed. Documentation will be required upon cancellation of ESA.
If I do not spend my ESA funds on private school tuition, can I accept STO tax credit scholarships to pay my tuition?
No. You cannot utilize ANY ESA funds & STO funds at the same time.
If I save all of my ESA funds and do not spend any at all, can I accept STO tax credit scholarships?
No. Even though you have not spent any ESA funds, you have still accepted them so you cannot accept STO tax credit scholarships.
What do I need to provide to IBE if transferring from ESA to accepting scholarships?
IBE requires proof of cancelled ESA contract along with IBE transfer verification. A Class Wallet transaction journal may also be required to confirm eligibility.