ESA Myths vs Facts
Separating truth from misconceptions
Myth #1: "ESAs are only for wealthy families"
❌ The Myth
ESAs are a giveaway to rich families who were already sending kids to private school.
✅ The Fact
As of 2025, all Iowa families qualify — no income limits.
The program phased in over three years:
- Year 1 (2023-24): Income limits applied
- Year 2 (2024-25): Limits raised
- Year 3+ (2025-26): Universal — everyone qualifies
ESA ($7,988) can cover 100% of tuition at schools that price at the ESA amount. Families who couldn't afford private school before can now access it with little to no out-of-pocket cost.
Myth #2: "There's no accountability for ESA funds"
❌ The Myth
Private schools can spend ESA money however they want with no oversight.
✅ The Fact
All ESA transactions flow through Odyssey, a state-managed platform that:
- Tracks every purchase
- Only allows approved vendors
- Only allows eligible expenses
- Requires parent approval for each transaction
Schools don't receive a blank check. They submit invoices for specific services, parents approve, and the platform processes payment. Every dollar is traceable.
Myth #3: "ESAs hurt public schools"
❌ The Myth
Every ESA student takes money away from public schools.
✅ The Fact
The funding follows the student — just like it does with open enrollment.
44,500 Iowa students already use open enrollment (switching public districts). When they switch, funding follows them. ESAs work the same way.
The deeper question: Should funding follow students, or should students be assigned to schools based on geography? ESAs answer: funding follows students.
Myth #4: "You have to be low-income to qualify"
❌ The Myth
ESAs are means-tested like other assistance programs.
✅ The Fact
No income requirements as of 2025.
Early versions of the program had income limits that phased out. Now, whether your household earns $30,000 or $300,000, your child qualifies for the same $7,988 ESA.
Myth #5: "ESAs can pay for anything"
❌ The Myth
Parents can spend ESA money on whatever they want.
✅ The Fact
ESA funds are restricted to qualified educational expenses:
- ✅ Tuition, textbooks, curriculum
- ✅ Educational software
- ✅ Tutoring (licensed providers)
- ✅ Testing (ACT, SAT, AP)
- ❌ NOT athletics, uniforms, food, transportation
Expenses outside the approved list are rejected by Odyssey. Parents can't "spend it on anything."
Myth #6: "Private schools don't have to accept ESA students"
❌ The Myth
Private schools take ESA money but can reject anyone they want.
✅ The Fact
This is partially true — but context matters.
Private schools set their own admissions policies. They can be selective. But:
- They must follow non-discrimination laws
- They must be accredited to receive ESA funds
- Market pressure pushes schools to accept ESA students
ISP, for example, welcomes all Iowa students. ESA is the primary way most families pay tuition.
Myth #7: "ESAs only work in cities"
❌ The Myth
Rural families can't use ESAs because there are no private schools nearby.
✅ The Fact
Online private schools like ISP serve all 99 Iowa counties.
Before ISP, this was a real problem:
- 44 counties had ZERO private schools
- 31 more had no private HIGH schools
- Rural families had ESAs but nowhere to use them
ISP solves this. 100% online means any Iowa family can access private education, regardless of location.
Myth #8: "ESA money could go to 'teacher trips to Europe'"
❌ The Myth (Actual quote from critics)
Schools could use ESA funds for frivolous expenses with no accountability.
✅ The Fact
ESA funds pay for specific, pre-approved services.
Here's how it actually works:
- School submits invoice for tuition
- Parent reviews and approves in Odyssey
- Funds transfer for that specific purpose
- Every transaction is documented
Schools don't receive unrestricted funds. They receive payment for educational services that parents specifically approved.
Myth #9: "The program will be repealed soon"
❌ The Myth
ESAs are temporary and will go away when politics change.
✅ The Fact
ESAs are permanent by statute — no sunset clause.
The program was created by HF 68 (Students First Act), which has:
- No expiration date
- No automatic review period
- Permanent authorization
To end ESAs would require new legislation passing both chambers and being signed by the governor. With 45,000+ families using ESAs (and growing), the political coalition supporting the program is strengthening, not weakening.
Myth #10: "ESAs are 'money laundering'"
❌ The Myth
Critics have called the program "money laundering" because funds go to parents, then to schools.
✅ The Fact
This is how parent-directed education funding works — by design.
The parent-directed model means:
- Parents choose where their child is educated
- Parents approve how their ESA is spent
- The state doesn't dictate which school receives funds
This is a feature, not a bug. It's the difference between "the government chooses your school" and "you choose your school."
The Bottom Line
| Claim | Reality |
|---|---|
| "Only for the rich" | Universal — all families qualify |
| "No accountability" | Odyssey tracks every dollar |
| "Hurts public schools" | Funding follows students (like open enrollment) |
| "Can buy anything" | Strict eligible expense list |
| "Only works in cities" | Online schools serve all 99 counties |
| "Will be repealed" | Permanent by statute, growing coalition |