Navigating South Carolina's Education Scholarship Trust Fund: A Comprehensive Guide

The Education Scholarship Trust Fund (ESTF) in South Carolina is designed to empower families by providing them with greater control over their children's education. This program provides some South Carolina families with ESAs to cover educational expenses for their children. By enacting ESTF and including a broad list of eligible expenses, South Carolina took a tremendous leap toward providing families with access to the diverse educational options that are available today. It allows them to receive ESTF and use it for the many approved expenses without registering as a homeschooler or enrolling in a private school. This article will explore the purpose, eligibility requirements, approved uses for funds, application process, and potential benefits of the ESTF, offering a comprehensive guide for families considering this educational pathway.

Understanding the Education Scholarship Trust Fund (ESTF)

South Carolina’s Education Scholarship Trust Fund Program (ESTF) is the state’s version of an Education Savings Account (ESA). An Education Savings Account (ESA) is a flexible education fund that families can use for approved learning expenses, such as tutoring, curriculum, therapies, or online programs. Launched in 2024, it provides eligible families funds-allocated to each student are set to increase to $7,500 for the 2026-2027 school year, as per the new Senate bill passed this year-for approved educational expenses, including tutoring, curriculum, therapies, and more. Funding amounts may vary based on the student's grade level and needs. The flexibility of the ESTF is a crucial component of it. ESTF is an education savings account program, which means it creates accounts that parents can use for a variety of educational expenses. While this includes private school tuition, it also includes tutoring, curriculum, other instructional materials, computer hardware for educational purposes, services for children with special needs, and more. This is in stark contrast to a school voucher, such as North Carolina’s Opportunity Scholarship, which can only be used for tuition and fees at private schools.

The legislative history of ESAs in South Carolina has included the option to unbundle from the beginning. A 2017 bill, H.4308, the Equal Opportunity Education Scholarship Account Act, was a forerunner of ESTF. Several current Senate Education Committee members were co-sponsors of the Senate version of that bill, S.622. It included similar wording about not participating in a home instruction program under SC law, but it added language that explained parents could still use the ESA to educate their children outside of a school, “so long as purchases are limited to qualifying expenses.” In the ESTF statute, the provision that it meets compulsory education requirements performs a similar function.

The ESTF is designed for families earning up to 300% of the federal poverty level (for the 2025-2026 school year) and may expand to reach more households. Note: Income eligibility guidelines have been updated for 2026-2027 and the subsequent school years, not to exceed 500% of the federal poverty level.

Eligibility Criteria for the ESTF

To qualify for the ESTF, families must meet specific criteria related to residency, student age and grade level, income, and public school enrollment. Here's a breakdown of the eligibility requirements:

Residency: The student must be a legal resident of South Carolina.
Grade Level: Eligible for students entering kindergarten through 12th grade. Kindergarteners must be age 5 by September 1. Attained the age of five on or before September 1 of the current school year, OR have received a scholarship the previous school year.
Income: Household income must be at or below 300% of the federal poverty level (500% of FPL in 2026-2027 and after), or the student must be Medicaid-eligible. For the 2025-2026 school year, eligibility is limited to those with a family income of 300% of the FPL ($96,450 for a family of four). The income limit for the 2026-2027 school year will be increased to 500% of the FPL ($160,750 for a family of four).
Public School Restriction: Students cannot be enrolled in their local public school while receiving funds. Cannot attend their resident public school for the 2026-2027 school year. NOTE: Your resident public school is the school that your student is zoned to attend, based on your address. As part of participation in the ESTF program, a student must be withdrawn from their resident public school.

The SC Department of Education refers to these students as “unbundlers” since they are customizing their own education instead of getting all their classes as a “bundle” from a full-time school. For clarity, I will also use unbundler.

Prioritization

Priority: Families with a household income limit below 300% of the FPL, siblings of current ESTF participants, children of active-duty military, and students who have attended a public school the previous school year. Please note that these changes will take effect for the 2026-2027 school year.

Approved Uses for ESTF Funds

ESTF dollars can be used for a variety of educational expenses, providing families with flexibility in tailoring their child's learning experience. Here are some of the approved uses for the funds:

Tutoring and academic instruction
Curriculum and instructional materials
Specialized educational therapies (speech, OT, PT, behavior intervention)
Technology and devices for learning
Transportation (up to $750/year)
Testing and certification fees (e.g., SAT, ACT, industry credentials)
Fees for nationally norm-referenced testing, AP exams, or similar assessments
Industry certification exams
Examinations related to college or university admission
Educational services and therapies for students with disabilities from a licensed or accredited practitioner or provider
Unbundled courses, services, extracurricular activities, and tutoring from a public school district or charter school
Contracted teaching services and education classes approved by the DOE
Fees for interdistrict public schools transfers
School uniforms
Any consumables and items necessary to complete a curriculum or that are otherwise applicable to a course of study that has been approved by the department
Any other educational expense approved by the DOE.

Families might use ESTF funds to register for a four-week online math class, join a writing workshop, schedule one-on-one tutoring, or purchase a new laptop for home-based learning.

Please note that tuition and fees for nonpublic schools are not currently eligible under the ESTF.

How to Apply for the ESTF

South Carolina makes it easy for families to access the ESTF through a clear and transparent application process. Follow these five simple steps:

Check qualification requirements: Confirm residency, income, and public school enrollment. Your child must be entering K-12 or starting kindergarten (age 5 by Sept. 1).
Prepare documentation: Proof of residency, income verification, and prior school enrollment, if applicable. Driver’s License or State Issued ID, Utility Bills (Gas, Electric, Water), Government/ Govt.
Apply online: Submit through ClassWallet within the timeframe provided.
Set up a ClassWallet account: This platform lets you pay approved providers directly.
Start planning: Explore providers and schedule learning services that meet your child’s academic and personal goals.

Funds are distributed and managed through ClassWallet, a secure digital platform that simplifies payments to approved providers and tracks eligible purchases. Purchases must be made from state-approved vendors only.

Window 1: Returning awarded students and their siblings.
Window 2: Priority students.
Window 3: All eligible students.

Approved Providers and Educational Tools

To ensure the integrity and quality of services, the state has established a list of pre-approved vendors and service providers. Approved categories include:

Tutors and Educators: Providers must have relevant credentials and experience.
Therapists and Specialists: Must hold licensure in their respective fields.
Curriculum Providers: Must align with state academic standards.
Technology Vendors: Must demonstrate that devices or tools serve educational purposes.

Outschool is a state-approved provider under South Carolina’s Education Scholarship Trust Fund (ESTF), allowing families to use scholarship dollars for various eligible educational classes, tutoring, and more.

Getting Started with Outschool Using ESTF Funds

Once you're approved for the ESTF, here are the steps to begin using your funds with Outschool:

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Confirm eligibility: South Carolina families must verify their residency, income level, and previous public school enrollment (or kindergarten eligibility).
Access Outschool through ClassWallet: Create your ClassWallet account after approval. Log in to the marketplace, search for Outschool, and link your ESTF account to make approved purchases.
Start learning: Browse Outschool’s catalog of thousands of ESA-eligible classes, including core academics, enrichment, and niche topics. The platform supports live, one-on-one, and self-paced formats that are eligible for ESTF coverage.

Benefits and Considerations

The ESTF offers numerous benefits, but it's essential to consider all aspects before participating.

Advantages

Customized Education: Families can tailor their child's education to meet specific needs and interests. Flexible learning options, like those currently allowed in ESTF, enable parents to find the right fit for each child in each subject. Kids who are advanced can work to their level. Kids who struggle can get additional support. And kids who are advanced in some areas and struggle in others can have both needs accommodated.
Access to Diverse Resources: The ESTF opens doors to a wide range of educational services and providers.
Empowerment: Parents have greater control over their child's learning environment and resources.
Innovative Educational Models: Flexible ESA programs allow innovative educational models to flourish.

Important Considerations

Application Process: Families must complete the application process and meet all eligibility requirements.
Approved Providers: Funds can only be used with state-approved vendors.
Restrictions: Students cannot be enrolled in their local public school while receiving funds.
Program Changes: Eligibility details are confirmed annually. For current criteria, visit the SC Department of Education page.
Loss of Eligibility: If your child re-enrolls in their district-assigned public school during the funded year, they will lose eligibility for the ESTF, and any unused funds will be revoked.

Addressing Misconceptions and Ensuring Clarity

The February 4th Senate Education Committee hearing on S 692 made it clear that several lawmakers felt they had been misled about the nature of the Education Scholarship Trust Fund program. Some seemed to think the Department of Education is approving unbundlers based on this line under qualifying expenses: “(n) any other educational expense approved by the department to enable personalized learning consistent with the intent of this act.” But it’s really the fact that using ESTF satisfies the state’s compulsory education requirement that enables parents to unbundle their children’s education.

Families who register as homeschoolers in South Carolina are not eligible for ESTF. Families who are using ESTF to customize their children’s education-even if most of that occurs at home-are not considered homeschoolers under South Carolina law.

Is the Scholarship Renewable?

Yes. Students may continue to receive the scholarship each year if they remain eligible and funds are available. Reapplication may be required annually. Students receiving ESTF may not concurrently receive funding from any other state-administered scholarship or education grant programs.

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