Your guide to Education Savings Accounts: Funding customized education
Understand how Education Savings Accounts (ESAs) work, what types of educational experiences they can fund, and how they can support personalized learning paths based on your child’s interests, learning needs, and pace.
Ever wish there were more flexible ways to support your child’s learning? In some states, Education Savings Accounts (ESAs) are helping families do just that—they provide funds for private school tuition, tutoring, online classes, and other educational choices that reflect the needs and interests of their individual learner.
Although ESAs are known by different names in many states—like the Empowerment Scholarship Account in Arizona and the Education Freedom Account (EFA) in New Hampshire—their common purpose remains unchanged. These flexible programs give families real control over how and where their kids learn.
With these state-funded programs, families can direct resources toward tutoring, online classes, enrichment programs, homeschooling, and more—giving you the power to build a learning plan that fits your child’s needs.
If you're planning to use your ESA funds for flexible, interest-led learning, Outschool may be a great fit. Outschool accepts ESA funds from many states, and many families are already using them to access live classes, tutoring, and interest-based learning experiences. Curious how it works—and whether your state is eligible? Let’s dive in.
How does an Education Savings Account (ESA) work?
Think of an ESA like a savings account that can be used for a variety of approved educational expenses.. Once your family is approved, your state deposits funds—often several thousand dollars per year—into a dedicated account. The exact amount varies depending on where you live and your child's eligibility.
Parents can typically use Education Savings Account (ESA) funds in one of three ways: by purchasing through an approved online marketplace (like ClassWallet), authorizing direct payments to pre-approved education providers (such as tutors or private schools), or paying out of pocket and requesting reimbursement. The exact process varies by state, so it’s important to check your state’s ESA program for specific rules and approved vendors.
Families use ESA funds for:
Private or micro-school tuition
Personalized tutoring
Online classes (like Outschool’s live small-group courses or one-on-one tutoring)
Educational tools, supplies, curriculum, and enrichment experiences
Some families use ESA funds to combine interest-led subjects—like astronomy or creative writing—with focused academic support such as math tutoring. This kind of blended approach can boost confidence and help learners stay engaged and motivated.
ESAs also make it easier for families exploring non-traditional educational methods—like unschooling, deschooling, or hybrid homeschooling—to craft learning experiences that reflect their values and their child’s natural curiosity.
While flexibility varies by state, some programs allow funds to support approaches outside conventional curriculum models, giving families more room to customize learning to what truly works for them.
Where are ESAs available?
More families are taking action with Education Savings Accounts (ESAs), using them to create learning paths that reflect their child's interests, pace, and goals. As of 2025, these programs are now active in 18 States, with more considering similar legislation each year!
Families in these locations may be able to use ESA funds for tutoring, private school tuition, enrichment classes, and other educational tools.
Here’s a list of states where ESA programs are currently available:
Alabama
Arkansas
Florida
Georgia
Indiana
Iowa
Louisiana
Mississippi
Montana
New Hampshire
South Carolina
Tennessee
Texas (to launch in the 2026-2027 school year)
Utah
West Virginia
Wyoming
Programs like Arizona’s Empowerment Scholarship Account (open to nearly all K–12 students) and North Carolina’s ESA+ (which offers up to $17,000 annually for learners with disabilities) show the range and potential of these initiatives.
As more families gain access, platforms like Outschool are making it easier to bring learning to life—through small-group classes, 1:1 tutoring, and interest-led courses that turn curiosity into confidence.
Who is eligible and how to apply for an ESA
Eligibility for Education Savings Accounts (ESAs) varies by state, and each program has its own requirements. Some states offer universal access to all K–12 students, while others limit eligibility to specific groups, such as:
Students with special needs
Families below a certain income threshold
Children attending public schools rated as underperforming
Students previously enrolled in public school for a minimum period
Military or foster care families (in some states)
The age range and qualifying criteria may differ depending on your state’s legislation. For example, Arizona’s ESA program is open to nearly all K–12 students, while North Carolina’s ESA+ is specifically designed for students with disabilities.
To apply, families typically:
Visit their state’s official ESA program website or education department portal
Submit required documentation, such as proof of residency and academic records
Complete an ESA application form detailing eligibility
Set up an approved digital wallet system (e.g.:ClassWallet) to receive and manage funds
Are Educational Savings Accounts (ESAs) right for your family?
Choosing the right education path takes planning—and a little flexibility. As you explore ESA options for your family, let's break down the key areas to help you make this important choice.
Learning Style & Goals
Think about how your child learns best. Do they thrive in hands-on environments, independent study, or interactive group settings? This can help you choose learning experiences that not only support their growth but also qualify under ESA guidelines—for example, small-group classes, tutoring, or curriculum resources.
Outline specific learning goals. Are you looking to reinforce foundational skills, explore new subjects, or follow a learner-led path based on curiosity? Defining your goals makes it easier to identify which programs or tools to spend your ESA funds on and ensures your choices stay aligned with your child's needs.
Financial Planning
Look into how much ESA funding is available in your state and how it fits into your broader education budget.
List the types of educational expenses you'd like to cover—such as tutoring, curriculum materials, online courses, or extracurricular programs—and confirm what’s eligible through your state’s ESA guidelines.
Practical Considerations
Think about how hands-on you want to be in your child’s day-to-day learning. If you’re looking for a structured routine with regular check-ins, you might gravitate toward scheduled classes or tutoring. If you need more flexibility or want your child to lead the way, you might prioritize self-paced programs, interest-led projects, or tools that support independent learning.
Join a local or online ESA community to exchange tips with other families, ask questions, and stay current on your state’s program updates. These spaces can be great for learning what’s worked well for others and discovering resources you might not have come across yet.
Next Steps
Visit your state’s ESA program page to review eligibility, deadlines, and approved expenses.
Make a shortlist of learning resources or providers that align with your goals.
Try a few resources or programs to see what fits—then adapt as needed. Starting small can help you build confidence as you create a plan that works for your family.
What is the difference between a 529 plan and an Education Savings Account (ESA)?
When you're planning how to support your child's education, it's helpful to understand the difference between savings tools designed for different learning stages. While both 529 plans and Education Savings Accounts (ESAs) can fund educational expenses, they’re built with different goals in mind.
529 plans are long-term investment accounts primarily used to save for college tuition and related expenses. In many states, they can also be used for up to $10,000 per year in K–12 private school tuition. ESAs, on the other hand, are designed to support K–12 learning needs more immediately—with funds that can be used throughout the school year for a wide range of approved learning experiences.
Types of education savings options in the U.S.
If you're researching ways to fund your child's education, you’ve likely come across several savings programs—especially if your state doesn't currently offer an ESA. It can be a lot to sort through, but the good news?
There are several ways to support your child’s learning with flexible funding options. Here's a quick breakdown of the most common programs so you can see what might be available to you and what best fits your family’s learning goals.
State-Funded ESAs
These programs use state education dollars—basically a portion of what would have gone to your local public school—to fund your child’s personalized learning. They’re run by state education agencies and are currently available in: Alabama, Arizona, Arkansas, Florida, Georgia, Indiana, Iowa, Louisiana, Mississippi, Montana, New Hampshire, North Carolina, South Carolina, Tennessee, Utah, West Virginia, and Wyoming.
Tax-Credit ESAs
In this model, private donors contribute to education funds, and in return, they get state tax credits. The money goes to scholarship organizations that help families cover learning costs. These programs are currently offered in: Florida and Missouri.
Education Tax Scholarships
These are also funded by private donations (with tax benefits for donors), but they’re managed by nonprofit organizations that provide scholarships to families. You’ll find these programs in a wide range of states, including: Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Louisiana, Montana, Nevada, New Hampshire, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, and Virginia.
ESA Microgrant Programs
These are smaller-scale programs, often funded through a mix of state, federal, or private money. They’re typically used for short-term learning needs or targeted support. Microgrants are currently available in: Texas, Ohio, Idaho, Indiana, North Carolina, Oklahoma, Florida, New Hampshire, and South Carolina.
529 College Savings Plans
These are long-term savings accounts you can open to help pay for college—and in many states, you can also use them for some K–12 private school costs. Every state has its own version of a 529 plan, and they’re funded by personal contributions.
Coverdell Education Savings Accounts (Coverdell ESAs)
These accounts let you save for both K–12 and college expenses and are offered by various financial institutions. They’re available across the U.S., though not all financial institutions offer them. Like 529 plans, they’re funded by personal savings and can be used for a variety of educational costs.
Common Questions about Education Savings Accounts (ESAs)
As you explore flexible learning options, you’re bound to run into questions—lots of them! Let's walk through some common questions you may have about Educational Savings Accounts (ESAs).
What learning experiences can I fund with my ESA?
It depends on your state’s program, but most ESAs allow families to use funds for:
Private school tuition
Online classes
One-on-one tutoring
Curriculum and educational supplies
Special education services and therapies
Enrichment activities like art, coding, or music
Always check your state’s approved spending list to make sure your selections qualify.
How do other families make the most of their ESA funds?
Families often build a custom mix of learning options to match their child’s needs and interests. Many use ESA funds for essential expenses like private school tuition or homeschool curriculum. Others choose to support structured routines through tutoring or online classes. ESA funds can also be applied to more flexible, interest-led learning like project-based activities, arts programs, or STEM enrichment—helping families round out their child’s education with both core academics and creative growth.
What happens if I don't use all my ESA funds this year?
Most states let you keep unused funds for next year's learning adventures. While specific policies vary, this flexibility helps you plan confidently for long-term educational goals without rushing to spend funds before year-end. Check your state's ESA handbook for local guidelines about rolling over funds.
Will ESA spending affect our family's taxes?
When you use ESA funds for approved learning experiences, these distributions are tax-free. This means you can focus on choosing the right educational opportunities for your child without tax worries!
How can I start using my ESA with Outschool?
Outschool currently accepts ESA and Microgrant funds from a select number of states. If you're in one of the following—Arizona, North Carolina, South Carolina, Utah, Texas, New Hampshire, or Indiana—you can use your ESA or Microgrant funds to enroll in Outschool classes.
Families in these states can pay for classes on Outschool just like they would with personal funds, using approved payment systems such as ClassWallet or direct reimbursement where applicable. Be sure to follow your state's guidelines to ensure your purchase qualifies.
To learn more and see if your state is supported, visit Outschool's ESA information page.
Building your child's educational future
You can use an ESA to build a complete learning plan from the ground up—or simply add enrichment opportunities that make learning more engaging. ESAs give families the flexibility to choose what works best for their child’s goals, pace, and interests. Used thoughtfully, they can help you create a learning journey that truly fits your child.
If you plan to utilize your ESA funds for online tutoring or classes, Outschool supports families in select states where these programs are approved for use. If your state participates, you can use your ESA funds to enroll in Outschool’s flexible learning experiences across core academics, enrichment classes, and more.
Explore ESA-eligible classes to see how Outschool can support your child’s learning journey.
