Navigating Arizona's Private Education Scholarship Funds: Eligibility Requirements

Arizona offers several avenues for families seeking financial assistance for private education through various scholarship programs. These programs, funded by tax credits and other sources, aim to make private education accessible to a wider range of students. Understanding the eligibility requirements for these scholarships is crucial for families seeking to utilize these opportunities.

Overview of Arizona's Scholarship Programs

Arizona's private school choice programs are primarily facilitated through School Tuition Organizations (STOs). These organizations receive donations from individuals and corporations, which then become scholarships awarded to eligible students attending private schools. The state offers a dollar-for-dollar tax credit to donors, incentivizing contributions to STOs.

Key Scholarship Types

There are several types of tax credit programs available in Arizona, each with specific eligibility criteria:

Original Individual Program: This program is open to all Arizona students who are enrolled in or will be enrolling in an Arizona private school.
PLUS/Switcher Program: This program is designed for students switching from public to private school. Eligibility includes:
- Students who were previously enrolled in an Arizona public school for at least one semester in the prior school year and transferred to a private school.
- Students who were homeschooled before transferring directly to an Arizona private school.
- Students who moved to Arizona from another state or country and transferred directly to an Arizona private school.
- Students who participated in the Empowerment Scholarship Account (ESA) program and did not renew the account to accept an STO scholarship.
- Students whose parents are under military orders.
Corporate Low-Income Program: This program is primarily for children from low-income households. While the threshold is generally below 185% of the federal poverty level (e.g., approximately $59,500 for a family of four), some STOs may extend eligibility to families with incomes between 185% and 342% of the federal poverty level (approximately $59,500 to $110,000 for a family of four).
Corporate Disabled/Displaced Program: This program targets two specific groups of students with greater educational challenges: students with disabilities and students in the foster care system.

K12 Private Academy Scholarship

K12 Private Academy awards up to four scholarships for full-time, tuition-free enrollment each school year. The K12 Private Academy Scholarship is available to students in grades K-12 demonstrating academic excellence.

Arizona Empowerment Scholarship Account (ESA)

The Arizona Department of Education funds the Empowerment Scholarship Account (ESA) program. It provides students with 90% of the funding the state would be spending on them in the public school system. Parents can use ESA funds for private school tuition, home education, educational therapies, tutoring, and more.

Read also: Arizona Education System

ESA Funding Amounts

For the 2022-2023 school year, kindergarten students received $4,000 - $5,000. Children with special needs receive a higher ESA amount based on the PRIMARY eligibility category on their IEP or Educational Evaluation by a qualified examiner (licensed physician MD/DO, psychologist or psychiatrist).

General Eligibility Requirements

While specific requirements vary by STO and scholarship type, some general eligibility criteria apply across many programs:

Residency: Students must be Arizona residents.
Enrollment: Students must be enrolled in or intending to enroll in an Arizona private school.
Income Limits: Several programs, particularly those offering larger scholarships, have income limits. These limits are often based on a percentage of the federal poverty level.
Prior Schooling: Certain scholarships target students transferring from public schools or those with specific circumstances like homeschooling or relocation from another state.
Special Needs: Students with disabilities may qualify for specific scholarships designed to support their educational needs. A copy of either an IEP, 504 plan, or MET issued by an Arizona public school.
Age: Children must also be 5 years old by the beginning of the school year for which they have been awarded a scholarship. Exceptions can be made for children who are at least four and a half years old if the school confirms that they have been accepted into the regular Kindergarten class and are expected to enter first grade the following academic year.

Applying for Scholarships

The application process generally involves the following steps:

Research: Identify STOs that align with your child's eligibility and educational needs.
Application: Complete the STO's scholarship application, providing all required documentation.
Documentation: This may include proof of residency, income verification, prior school records, and, if applicable, documentation of special needs (IEP, 504 plan, or MET).
Deadlines: Be aware of application deadlines, as scholarships are often awarded on a first-come, first-served basis.
Apply to multiple STOs: Students can be eligible for four different funding programs. If you qualify for “low income” there is a maximum amount each STO can award each year, but you can combine with other STOs to get the full tuition amount covered.

Partner Programs

Some organizations partner with STOs to administer scholarships. For example, the Kids’ Scholarship Fund (CSF) works with partner programs in various locations. These programs may have specific deadlines and requirements.

Financial Considerations

Scholarship amounts vary depending on the STO, the type of scholarship, and the family's financial need. Some scholarships may cover the full cost of tuition, while others cover a percentage.

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Tax Credit Donations

Arizona taxpayers can donate to STOs and receive a dollar-for-dollar tax credit on their state income taxes. Donation limits are $1,535/year for individuals, $3,062/year for married couples.

Recommendations

Donors can recommend a specific child to benefit from their donation. However, it's important to understand that not every child is eligible for every type of scholarship award.

Restrictions

Students cannot receive ESA funding AND also participate in the private school tax credit programs. Once you have applied for an STO, you are committed to accepting that scholarship amount, even before you know the amount.

Specific Scholarship Programs

Kids’ Scholarship Fund

Kids’ Scholarship Fund (CSF) scholarships are generally awarded on a first-come, first-served basis. To be eligible for a scholarship, children must be entering grades K-8, and in most cases, new scholarships are only awarded to children coming from public school or entering Kindergarten.

Scholarships typically cover between 75 percent to 25 percent of tuition, depending on each family’s income and household size, although details vary by partner program. The maximum scholarship cap varies from city to city, and nationally the average award is around $2,568.

Read also: Understanding ASU Tuition

Arizona Tax Credit

The 2025 Individual tax credit allows Arizona taxpayers to donate money to Arizona Tax Credit till April 15, 2026 and receive a 2025 tax credit of up to $1,535 for married couples filing jointly or $769 for single heads of a household.

The Overflow/Plus tax credit can be received in addition to the Individual tax credit. Taxpayers may donate through April 15, 2026 and count their donation as tax credit in the preceding tax year(2025).

If you are applying for Overflow/Plus and Corporate funding awards, verification of eligibility is a requirement. You will need to include previous tax credit scholarships received (if not from Arizona Tax Credit) and/or records of previous public school attendance in order to be considered for Overflow/Plus and Corporate funding.

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