Quick answer: School choice programs use public money, or donated money that earns the donor a tax credit, to help families pay for private education. An education savings account (ESA) is a parent-managed account for tuition and other approved costs, a voucher pays toward private school tuition, and a tax-credit scholarship is funded by donations. Each state decides whether online private school tuition is an allowed expense and which schools are approved, so the state program page decides the answer for your child.
Families often ask three things: which type of program their state runs, whether it pays for an online private school, and what the steps are. This guide explains the three program types, separates a state ESA from a Coverdell ESA and a 529 plan, and lists the 2026-27 facts for each state that Forest Trail Academy names on its funding page. Every figure below links to the program page, statute or IRS page it came from.
Table of Contents
School choice programs: vouchers, ESAs and tax-credit scholarships compared
EdChoice, a nonprofit that tracks these programs, describes the three main types in its 2025 ABCs of School Choice. The table adds what that guide leaves to each state: who holds the money and where it can go.
| Program type | Where the money comes from | Who holds it | What it can pay for |
|---|---|---|---|
| School voucher | Public funding set aside for the child | The family receives the voucher and uses it at a participating private school | Partial or full private school tuition |
| Education savings account (ESA) | Public funding, deposited in a government-authorized account | The family, through an online portal or card, within state spending rules | Tuition plus other approved costs such as tutoring, online programs, therapies and instructional materials |
| Tax-credit scholarship | Donations to a nonprofit, with a tax credit for the donor | The nonprofit scholarship organization awards the scholarship | Usually private school tuition and fees |
Two more details help when you compare programs.
- Names do not always match types. Alabama calls its awards education savings accounts, and the Alabama Department of Revenue describes them as refundable income tax credits. Read what the program does, not only what it is called.
- Vouchers and tax-credit scholarships usually stop at tuition and fees. EdChoice notes in its explainer on ESAs that ESAs are not limited to tuition, which is why online learning programs appear on many ESA expense lists.
Whether an online private school qualifies depends on three rules in each state: the list of allowed expenses, the school approval process, and whether a school outside the state can take part. The state table below shows how six states answer those questions.
Education savings account: state ESA, Coverdell ESA and 529 plan
The phrase “education savings account” covers two different products, and a third account is often mixed in with them. A state ESA is a school choice program. A Coverdell ESA and a 529 plan are savings accounts that families fund themselves.
| State ESA (school choice) | Coverdell ESA | 529 plan | |
|---|---|---|---|
| What it is | A state program that deposits public funds in an account for an approved student | A federal tax-advantaged savings account a family opens at a bank or other approved provider | A state or institution plan with tax advantages for education costs |
| Whose money | Public funds, awarded through an application | The family’s own after-tax contributions | The family’s own contributions |
| Annual limit | Set by each state program | $2,000 per beneficiary for 2025, reduced when the contributor’s modified adjusted gross income is between $95,000 and $110,000 ($190,000 and $220,000 on a joint return), per IRS Publication 970 | Up to $20,000 per student per year in withdrawals for K-12 expenses, set by 26 U.S.C. 529 |
| K-12 use | Depends on the state list of allowed expenses | Tuition and fees, books, supplies, equipment, academic tutoring and special needs services at an eligible elementary or secondary school | Tuition, curriculum, books and instructional materials, online educational materials, qualifying tutoring, test fees, dual enrollment fees and educational therapies |
| Apply to a state? | Yes | No | No |
The 529 figure changed recently. Public Law 119-21 raised the K-12 limit from $10,000 to $20,000 per beneficiary, and the statute text on Cornell’s Legal Information Institute states that the change applies to taxable years beginning after December 31, 2025. Some older IRS pages still show $10,000. State income tax treatment of 529 withdrawals for K-12 tuition differs, so check your state tax rules before you withdraw.
A family can hold a Coverdell ESA or a 529 plan and also receive a state ESA, because they are separate accounts with separate rules. Ask the state program whether other education funds affect the award.
Education freedom scholarship: a state program and a federal tax credit
The name “education freedom” appears in two places, and both are covered here.
- Tennessee Education Freedom Scholarship (EFS). A state program run by the Tennessee Department of Education. Details are in the table below.
- Federal Education Freedom Tax Credit. A federal tax credit for donors, not a payment to families. Beginning in 2027, an individual can claim up to $1,700 (up to $3,400 on a joint return) for cash contributions to scholarship granting organizations in states that opt in, according to the IRS announcement of the proposed regulations. Scholarships can cover private school tuition, tutoring, books and other qualified costs. The IRS list of participating states, current as of September 14, 2026, includes Alabama, Arkansas, New Hampshire, South Carolina and Tennessee. Arizona is not on that list.
The federal credit does not set up a new family application. Families apply to a scholarship organization that a participating state has approved.
School choice by state: 2026-27 programs for online private school
Forest Trail Academy lists six states on its voucher and ESA funding page: Alabama, Arizona, Arkansas, New Hampshire, South Carolina and Tennessee. The tables below cover those six states, one fact set per program, taken from each state’s official program page or statute. Amounts are for the 2026-27 school year unless a cell says otherwise. Where a figure could not be confirmed, the cell reads “see program page”.
Program, agency and award
| State | Official program name | Administered by | Award, 2026-27 | Official page |
|---|---|---|---|---|
| Alabama | CHOOSE Act (education savings accounts) | Alabama Department of Revenue, with ClassWallet for payments | $7,000 per student at a participating school; $2,000 per student in a home education program, capped at $4,000 per family | chooseact.alabama.gov |
| Arizona | Arizona Empowerment Scholarship Account | Arizona Department of Education | See program page. State law sets the deposit at 90 percent of the base support level and additional assistance a charter school would receive for that student (A.R.S. 15-2402) | azed.gov/esa |
| Arkansas | Education Freedom Account (EFA) Program | Arkansas Department of Education, Division of Elementary and Secondary Education | $7,208 total; $8,011 for “Succeed” students. ADE states these are net of transaction fees | ADE EFA page |
| New Hampshire | Education Freedom Account (EFA) | Children’s Scholarship Fund New Hampshire, administering state grants under RSA 194-F | See program page. The grant is a base state adequacy amount plus added aid for qualifying students | CSF New Hampshire EFA page |
| South Carolina | Education Scholarship Trust Fund (ESTF) | South Carolina Department of Education, with ClassWallet for payments | $7,634, paid in four deposits of $1,908.50 | sc-estf-program.com |
| Tennessee | Education Freedom Scholarship (EFS) Program | Tennessee Department of Education | $7,530 | tn.gov/education/efs |
Eligibility, application window and online school tuition
| State | Who is eligible | Application window | Is online private school tuition an allowed expense? |
|---|---|---|---|
| Alabama | Alabama residents in grades K5-12. For 2026-27, household income must not exceed 300 percent of the federal poverty level ($96,450 for a household of four, 2025 tax year). From 2027-28, no income requirement. The first 500 ESAs are reserved for students with special needs. | 2026-27: renewals December 15, 2025 to March 31, 2026; new families January 2 to March 31, 2026. Closed. Award notices began April 15, 2026. Dates for 2027-28 are not posted yet. | Yes. The 2026-27 parent guide lists tuition and fees for an approved nonpublic K5-12 online learning program. The provider must be approved by the Department of Revenue. |
| Arizona | Arizona residents who are eligible to enroll in a public school in preschool for children with disabilities, kindergarten or grades 1-12 (A.R.S. 15-2401.01). The student may not be enrolled in a district or charter school. | See program page | Yes. State law allows “tuition or fees for a nonpublic online learning program” (A.R.S. 15-2402). Tuition at a qualified school requires a school located in Arizona. |
| Arkansas | Arkansas residents eligible to enroll in K-12 in an Arkansas public school. The 2025-26 family handbook describes eligibility as universal, with a priority order. | 2026-27: March 9 to June 1, 2026. ADE notes that applications after June 29, 2026 may be reviewed later, depending on funding. | Tuition at a participating private school is allowed. The handbook also lists online programs and online course fees. Whether a specific online school outside Arkansas qualifies: see program page. |
| New Hampshire | New Hampshire residents eligible to enroll in K-12 who are at least 5 by September 30. Students attending a district public or charter school full time are not eligible. Priority goes to current recipients, siblings, students with disabilities and households at or below 350 percent of the federal poverty level. The 2026-27 cap is 12,500, and priority groups are outside it. | Rolling. Applications complete and verified by July 15 receive the full-year grant. Families can apply through February for a prorated grant. | Yes. The 2026-27 parent handbook lists tuition and fees for non-public online learning programs. Private school tuition is allowed at a school approved by the New Hampshire Department of Education or by the education department of the state where the school is located. |
| South Carolina | South Carolina residents in K-12, age 5 by September 1 and under 22, with household income up to 500 percent of the federal poverty level. The student cannot attend the zoned public school or homeschool under Option 1, 2 or 3. | 2026-27: closed, because the cap of 15,000 awarded students was reached. A waitlist gives updates on 2027-28. The program page lists priority windows for the next cycle but does not state the school year. | Yes. The 2026-27 participant guide lists tuition and fees for an approved nonpublic online education service provider or course, and a payment category for online school tuition. |
| Tennessee | Tennessee residents entitled to attend a public school in K-12 and lawfully present in the United States. If applications exceed awards, priority runs from current recipients, to lower-income households, to current Tennessee public school students, to all others. | 2026-27: closed February 6, 2026 at 4:00 p.m. CT. The 2027-28 window is not posted yet. | Funds go first to tuition and fees at a registered Category I, II or III nonpublic school. The EFS FAQ says the school must be physically located in Tennessee and that funds cannot be used at a school outside the state. |
Program rules change with each legislative session, and several of these programs set new application dates every year. Read the official page before you apply.
Where Forest Trail Academy fits
Forest Trail Academy is a private, accredited online school for grades K-12. Its courses are self-paced and it enrolls students any week of the year. Its funding page says the school accepts ESA funding from Alabama, Arizona, Arkansas, New Hampshire, South Carolina and Tennessee, and names the Arizona, Arkansas and New Hampshire programs. The school accepts program funds only for those states and programs. The same page says guidelines and eligibility vary by state and can change, and it asks families to contact admissions to confirm how a state program applies.
That confirmation matters in Tennessee, where the program page limits funds to registered schools located in the state. Ask admissions how the Tennessee program applies to your child’s enrollment before you plan around it.
For any other state, the sections above describe how school choice programs work and make no claim about Forest Trail Academy. You can see tuition and payment plans on the tuition page, and the guide to accredited and non-accredited homeschooling explains what accreditation means for your child’s records.
The steps a family follows
The details differ by state, but the path follows the same order.
- Check eligibility on the official page. Look at residency, grade, household income, and the school your child attends now. Several programs, including South Carolina’s and New Hampshire’s, require that the student not attend the zoned public school or a district or charter school full time.
- Gather documents. Alabama asks for a birth certificate, proof of residency and proof of income. Tennessee asks for proof of citizenship or lawful presence and two proofs of Tennessee residency.
- Apply in the window. Programs use a state or administrator portal. Apply for each student. Tennessee and Arkansas require an application or renewal every year.
- Wait for approval. Alabama sent 2026-27 award notices starting April 15, 2026. Tennessee sends an approval email with next steps. Priority rules apply when requests exceed funding.
- Enroll in an approved school or provider. Confirm the school is approved or registered under your program before you enroll. In Tennessee, the family selects the school in the portal and the school confirms enrollment there. In Alabama, funds are released after proof of enrollment at a participating school, submitted by June 30 for a July 1 start.
- The school is paid through the portal. Alabama and South Carolina pay through ClassWallet and state that there is no reimbursement to families. Arkansas schools invoice families inside ClassWallet once the family links the school. Tennessee’s portal pays schools directly rather than the parent. Families cover any cost above the award.
Worked example from South Carolina. The 2026-27 award is $7,634. The state deposits it in four equal parts of $1,908.50, on or before July 31, September 30, December 31 and February 28. Four deposits of $1,908.50 add up to the full $7,634. A school that bills by term would be paid from those deposits as they arrive.
Frequently asked questions
What is the difference between a voucher and an education savings account?
A voucher pays toward private school tuition. An education savings account is a parent-managed account that can pay tuition and other approved costs, such as tutoring and online programs. See the comparison table above.
Can ESA money pay for an online private school?
In some states it can. Alabama, Arizona, New Hampshire and South Carolina list online learning or online school tuition as an allowed expense. Tennessee limits funds to registered schools located in the state. Always check the current list for your state.
Is a Coverdell ESA the same as a state ESA?
No. A Coverdell ESA is a savings account the family funds, up to $2,000 per child per year. A state ESA is a program that deposits public money for an approved student.
Can I use a 529 plan for K-12 tuition?
Yes. Federal law allows up to $20,000 per student per year in 529 withdrawals for K-12 tuition and related expenses, for taxable years beginning after December 31, 2025. State tax treatment varies.
What is the Alabama CHOOSE Act?
It is Alabama’s education savings account program, run by the Alabama Department of Revenue. For 2026-27 it awards $7,000 per student at a participating school. From 2027-28 it has no household income requirement.
What is the Arizona ESA?
It is the Arizona Empowerment Scholarship Account, run by the Arizona Department of Education. State law lists tuition for a nonpublic online learning program among allowed expenses.
What is the Tennessee Education Freedom Scholarship?
It is a Tennessee Department of Education program that awards $7,530 for 2026-27 to eligible students attending registered nonpublic schools in Tennessee.
Does Forest Trail Academy accept ESA or voucher funds?
Its funding page lists Alabama, Arizona, Arkansas, New Hampshire, South Carolina and Tennessee. Contact admissions to confirm how your state’s program applies.
Have a program award and want to see how it applies? Book a call with admissions.
