With the recent passage of the CHOOSE Act, Alabama has joined the growing list of states embracing education savings accounts (ESAs). Unlike traditional vouchers, ESAs provide a form of educational choice that emphasizes student learning and enrichment. Parents also appreciate this approach for the freedom it gives them to choose what is best for their kids. This is underscored by increased demand for ESAs in states that have enacted a program.
Just as individual students have distinct needs, each state’s ESA landscape is unique. Our company, Odyssey, worked with the State of Iowa last year to implement the state’s first ESA program – Iowa Students First. We knew that the program had to work seamlessly for Iowa students and their families. Our first order of business was to understand the needs of parents, participating schools, and vendors in order to prepare them for success.
One priority was designing an ESA program that can be accessed and used in an efficient manner. The State of Iowa, by utilizing Odyssey’s technology, was able to introduce the first real-time identity verification feature in the country as part of their Students First ESA program. This innovative feature allowed parents to have their eligibility for the program determined in a matter of seconds. And to address questions that arise during or after onboarding, the program provides customer support 7 days a week, including nights and weekends.
It is also critical that parents know in advance what can be purchased under the program. Vendors should only be allowed to sell pre-approved goods and services, which makes product verification a necessary tool of any platform the state may develop. A third-party auditor verified almost 100% of all purchases on Odyssey’s marketplace were for eligible expenses. This approach helps ensure fraud, waste, and abuse are eliminated, which is vital for Alabama’s ESA program to reach its full potential.
Odyssey’s experience shows that innovative features and the ability to customize are key considerations for administrators of ESA programs. Governor Kay Ivey and the state Legislature have demonstrated their commitment to preparing Alabama families for educational success. At Odyssey, we applaud the swift action on ESAs in the 2024 Regular Session and encourage all stakeholders to closely follow the implementation of the law.
Joe Connor is the founder and CEO of Odyssey, an educational technology company.
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