The Indiana Education Scholarship Account (ESA) Program

FAQ with Indiana ESA Executive Director

The Indiana Education Scholarship Account (ESA) Program student applications will be available on June 27, 2022. In anticipation of the application launch date, Executive Director of Indiana ESA Jackie Guglielmo and Outreach and Engagement Coordinator Emma Vise sat down to compile frequently asked questions about student eligibility, application process, the differences between the Education Scholarship Account Program and the Choice Scholarship Program, and how families can use the scholarship funds to make education-related purchases.

Question: What is the Indiana Education Scholarship Account Program? Jackie: This brand new, state-wide program will provide tax-free scholarship funds directly to Indiana’s students with disabilities who require Special Education. These funds are deposited into an Education Scholarship Account in 4 quarterly disbursements and may be used for education-related expenses. Families will be able to pursue the environment and services that best suit their student’s unique abilities and customize aspects of their child’s educational experience, including what type of educational setting meets their child’s learning needs and who will provide special education services. There is also a wide-ranging list of allowable purchases called “qualified expenses” for which families may use the funds to pay for, like services, therapies, and tutoring.

Question: Is this program only for students with disabilities? Jackie: Yes. The Indiana ESA is available for Hoosier students with disabilities, between 5 and 22 years old, who meet an income requirement.

Question: What is the income requirement for the program? Jackie: Annual family income cannot exceed 300% of the federal free and reduced lunch income requirement. For example, a family of four cannot make more than $154,012.50 per year. There is a graphic on our website that provides income information for up to a family of 10.

Question: Is the program only for private school students? Jackie: Students may be coming from a variety of placements. They may have been educated at home, just coming of school age, been enrolled in a public school or public charter school, or may already be in a non-public school. However, once the student accepts their ESA, they must disenroll from the public school or public charter school and pursue educational services elsewhere. It is also important to note that in order to use their ESA to pay for tuition and fees at their school of choice, the non-public school must apply and be approved to participate in the ESA program.

Question: Are there similarities between the Choice Scholarship Program and ESA? Jackie: Yes. It is important to note here that a student may not use the Choice Scholarship and an ESA at the same time. The special education track of the Choice Scholarship Program and the ESA have similar eligibility requirements. Students who apply to either program would need to prove state residency, meet an income requirement of 300% of the free and reduced lunch income requirement, and fall between 5 and 22 years old. Eligible students have a disability, require special education, and have had an Individualized Education Program or Service Plan developed.

Question: How is the Choice Scholarship program different from the ESA? Jackie: The application process is different. If a family wants to participate in the Choice Scholarship Program, they work with their chosen state-accredited, non-public school to apply and submit all required documentation to that school. Families who apply for an ESA will do so through our secure online portal and will upload documents directly for review by our team.

The Choice Scholarship Program has two application windows. At this time, the Education Scholarship Account Program has one application window that opens on June 27, 2022, and closes on August 5, 2022.

Families who are approved for an ESA may choose to send their student to a state-accredited, non-public school. However, this is not a requirement of the program. They may opt to provide education in other ways.

In August, any funds remaining in a student’s Education Scholarship Account, up to $1,000, may roll over to the following year without impacting that student’s grant award amount.

Question: If a student is already attending a stateaccredited, non-public school and using the Choice Scholarship Program, can they continue to attend the same school while using the ESA? Jackie: Yes, as long as that school has applied and been approved through the Education Scholarship Account Program. Just because a school accepts the voucher program doesn’t necessarily mean they accept the ESA. Families should be sure to ask that question to the nonpublic school when they are thinking of applying for the Education Scholarship Account Program.

Question: Can the student use the ESA while attending a non-public school that is not state-accredited? Jackie: Families have flexibility with the Education Scholarship Program. They may choose to use the ESA funds at a state-accredited, non-public school. They may also choose a non-public school that is not state accredited. However, the payment process is different between the two.

If a family chooses for their student to attend a nonpublic school that is not state-accredited, the school will need to invoice the family following the provision of educational services. The tuition and fee payment will be made in arrears, similar to the payment method for all other types of participating entities.

If a family chooses for their student to attend a state-accredited non-public school, our team will verify enrollment. The non-public school will invoice the family for the upcoming quarter, and the family will upload the invoice for payment to be made ahead of services, similar to how tuition payments are typically made.

There is no requirement that a student using an ESA attend a non-public school. There is also no requirement for a student attending a non-public school participating in ESA to use their ESA funds to pay that school’s tuition and fees. They could apply for a waiver, which means they would use their ESA funds for other qualified expenses and agree to be responsible for paying the tuition and fees through another payment method.

Question: What other types of qualified expenses can a parent purchase with the ESA funds? Jackie: Qualified expenses are services and therapies offered by an approved provider related to the education of an eligible student. Some examples are tuition and fees, fees for assessments or examinations, educational services, therapies, courses, programs, fee-for-service transportation, and so many others. All payments for expenses will be made in arrears, meaning after the service has been completed.

Question: How do payments work? Can families be reimbursed for expenses paid out of pocket? Jackie: Families will upload invoices from approved providers into our secure, online portal to initiate the payment process. All payments are made for services rendered and may not be paid for ahead of time. Reimbursements will not be issued for any payments made.

Question: What if an account runs out of funds prior to the next quarterly disbursement and there is an outstanding balance owed to a provider? Jackie: It will be the family’s responsibility to make sure any balances are paid for services rendered. The same would apply if the cost of tuition and fees exceeds the grant award amount.

Question: Can parents still use their insurance for certain services? Jackie: Yes! In fact, we encourage families to utilize their insurance first and then use their ESA to cover any remaining balances.

Question: Will students currently accepting Medicaid waiver still qualify for Indiana ESA? Jackie: Yes. We understand that there may be some overlap in services covered by Medicaid waivers and qualified expenses under Indiana ESA. We encourage families to maximize use of both programs by contacting their Medicaid waiver case manager to review the parameters of their waiver or Emma Vise to review qualified expenses of the ESA programs.

Question: When and how can families apply? Jackie: Student applications will open on June 27, 2022, and will close on August 5, 2022. Families will need to visit the application page of our website in order to begin the application. Applications can be completed on a laptop, desktop, smartphone, or tablet.

Thank you to all of the families and providers who have sent these great questions. If you have any additional questions or would like support during the application process, we encourage you to reach out to Emma Vise at EmVise@tos.in.gov.

For more information on the Indiana Education Scholarship Account Program, visit our website at www.in.gov/tos/inesa, where you can explore ESA information in any language, and sign up for our free monthly newsletter.