Getting Your EdTech Ready in the Age of Growing ESAs

There have typically been three alternatives for parents of K-12 learners looking for alternatives to public schools. The first one, charter schools, which gained prominence around two decades ago, offer families an alternative to traditional public schools, with more innovative and flexible programs. The second option is private school vouchers which allow public funds to support students who opt to attend private institutions.

The third, Education Savings Accounts (ESAs) expands on these models, giving parents state funding to use for a range of educational services. Unlike vouchers, ESAs can be applied beyond just private schooling.

In a recent conversation with Morgan Camu, Head of Programs at Outschool.org on Tech In EdTech. Morgan shared valuable insights into the evolving education landscape and the growing importance of Education Savings Accounts (ESAs). She highlighted how ESAs are creating new opportunities for families to explore personalized learning experiences beyond the traditional public school system, from private tutoring to online courses.

During the COVID-19 pandemic, Morgan joined Outschool.org as it shifted from offering emergency scholarships for online learning to developing long-term educational solutions for families. Outschool.org emerged as a key player in supporting homeschooling families and expanding access to quality education through non-traditional means.

Morgan’s insights reflect the shift toward greater flexibility in education, a movement that is opening doors for edtech providers to offer innovative solutions tailored to individual learning needs. Read below to unpack more information about it.

 

Where Are ESA’s Taking Off?

A recent parental shift towards alternative educational systems drives growth in the number of ESAs. This shift, catapulted by the COVID-19 pandemic, prompted parents to explore alternative educational models, such as micro-schools, pod schools, homeschooling, and unschooling. This consequently led to greater advocacy for policies that support diverse educational options.

Morgan highlights how COVID relief funds paved the way for ESAs. COVID relief funds, specifically ESSER dollars, were allocated to families through various micro-grants, such as tutoring and enrichment scholarships. This improved the distribution of funds directly to families, paving the way for ESAs to build upon these efforts. Today, although many micro-grant programs are phased out, ESAs are here to stay.

As of late August 2024, approximately a third of the states have implemented some form of ESA legislation, with many more considering measures to broaden access to these programs. States are also increasingly adopting policies with three to four-year time horizons, gradually expanding access to more families and providers. As these states work towards a more universal approach, the number of children served by ESAs is bound to increase, creating a larger impact.

 

Challenges Facing ESA Programs and EdTech

Today, families generally want a wide range of options, they want to finely customize their child’s education at the most granular level. However, assembling a comprehensive educational experience from various components can be challenging. This is because the demand for edtech products really depends on how the rules for spending these funds are structured. Every state has its own legislative agenda, leading to varying rules about allowable expenditures. For instance, there may be regulations about spending on technology or transportation, and whether the funds should prioritize tuition first, with the remaining funds allocated to other categories.

Meanwhile, families are also looking for more than just the equivalent of private school tuition. While some families want to use the ESA funds for private education, many prefer to invest in technology and resources for online or hybrid learning environments. Additionally, families with children who have special needs want to recreate the services their child received in traditional schools. They seek occupational or speech and language therapists who can accommodate their schedules.

At the same time, low-income families, families of color, and non-native English speakers often face logistical challenges. Many parents work multiple jobs, making it difficult to transport their children to extracurricular activities or tutoring sessions. Therefore, they might be keen on solutions that address transportation, technology needs, and support for additional elective courses.

Overall, parents prioritize resources that help their children learn more dynamically and flexibly. They need the necessary tools and infrastructure to facilitate active participation in these educational formats.

 

The Rare Bright Spot for the EdTech Industry

This parent-driven opportunity has opened a new space where edtech product leaders who follow a learner-centered design approach get the furthest.

Many ESA programs are written at such a high level that they lack the nuance to effectively serve marginalized families. It’s essential to consider accessibility issues beyond just tech; for example, can a child without a laptop or tablet use the product? Can a child who shares a device with siblings access it? Can students with limited digital literacy engage with the platform independently? Customizing for these accessibility needs from the outset helps build stronger adoption of EdTech products.

Morgan likens it to bowling. Good bowlers don’t aim for the middle pins; they target the hardest-to-knock-down pins on the sides, like the seven-pin and the ten-pin. Likewise, by focusing on these challenging aspects, if developers can successfully address the needs of those who are furthest from the middle of the bell curve—like students with greater accessibility challenges—they’ll positively impact a wider range of users.

The reality is that while policies might aim to serve all children, the families who are first invited to these ESAs are those furthest from opportunity—often low-income families, those attending low-performing schools, or families with children who have IEPs. These underserved families seek edtech products that meet them where they are. EdTech founders and design teams should consider how their products, initially tailored for upper-middle-class families, can be adapted for those utilizing ESAs. This shift in perspective is a good starting point.

 

What Does Ethical EdTech Marketing Look Like?

When it comes to ethical marketing, there are safeguards in place within the ESA framework. Key among them are digital wallet providers. They act like banks for ESA funds. They ensure that vendors are approved and parents spend funds on vetted services. This oversight is crucial, especially considering how many families are utilizing these funds for various educational needs. These providers do essential work to prevent fraud and ensure that transactions are safe and secure.

Parents, especially those unfamiliar with edtech products, may be trying these services for the first time. Hence, companies must provide clear accessible disclaimers about their services, rather than burying important information in lengthy terms and conditions. There are some products with automatic subscription renewals. In such cases, families should know that if a product isn’t meeting their needs, there is an easy, hassle-free way to unsubscribe. The technology for unsubscribing should be as user-friendly as subscribing.

With many products, there is a steep learning curve involved. This makes the end-user experience very overwhelming. Parents should feel prepared to support their kids without feeling overwhelmed. If the product requires supervision, especially for younger children, it’s vital to communicate that upfront. A well-designed onboarding guide or user manual should be accompanied to improve the initial experience for both the child and the parent. This ensures that it’s a positive introduction rather than a frustrating one.

Furthermore, some organizations help parents make the most of government programs like the ESA. For instance, at Outschool.org, the team provides a navigation service for families. Parents come looking for a variety of educational resources, whether that’s a tutor or the best private school for their child. Outschool.org offers coaching and support to help families confidently assemble their child’s educational path.

 

Developing Critical Thinking, Communication, and Collaboration

To believe that edtech is the future of homeschooling, one must also accept that there are families eager for more in-person experiences. The reason is simple – they want their children to engage in community-based learning—whether at community centers, libraries, or gyms—where they can connect with peers who share similar interests.

As an edtech provider, if your offerings are strictly online, it may be worth exploring how to integrate community experiences into your programs. For example, instead of offering individual online courses, think about creating opportunities for kids to learn together online. Families might choose platforms like Duolingo or coding classes, but there’s an added value when children can build relationships in a collaborative environment. This way they can truly work on their critical thinking, collaboration, and communication skills – all with their chosen online community.

In fact, many families are looking for solutions that provide play space learning. Kids can benefit significantly from engaging in projects together, even if they log in from different homes. EdTech developers must consider partnerships with community centers where kids can come together, enjoy online learning, and benefit from the expertise of subject matter experts in a social context. This approach improves both the flexibility of online learning and the essential social benefits of working collaboratively.

Many platforms now offer project-based learning, allowing students to collaborate and share experiences. By stepping outside the platform for group activities, they can return to their projects enriched by those interactions. This blending of online and in-person learning could be incredibly beneficial.

With many states currently in session, edtech product leaders can expect significant developments in the next year. Morgan believes that while the future of ESA-enabled edtech space is exciting, product leaders must not lose sight of the original goal — to enable families to make confident decisions that align with their children’s educational needs.