Tyton Partners Paying for Choice 2024 Research Finds That Education Savings Accounts (ESAs) Can Help 14% More K-12 Parents Afford Private School
25 June 2024 - 1:00PM
Today, Tyton Partners, a leading strategy consulting and investment
banking firm in the education sector, unveils the final installment
of its new three-part series on school choice, Paying for Choice
2024 Part 3: Navigating the System of ESAs. The series continues
the firm’s extensive research into the evolving schooling landscape
since the start of the COVID-19 pandemic. This publication delves
into the evolution and impact of Education Savings Accounts (ESAs)
through the most extensive survey of families and providers on
attitudes toward ESAs in the United States to date.
As highlighted in Parts 1 and 2, the proliferation of ESA
programs nationwide has coincided with a period of disruption and
transformation in American education, with Tyton Partners
estimating that 20% of the U.S. K-12 student population will be
eligible for ESAs in the 2024-2025 school year. The first two
installments also shed light on some of the challenges of ESAs in
shaping the future of education.
In Part 3, Tyton Partners expands on the perceptions, attitudes,
and options for ESAs among parents and education providers in the
K-12 ecosystem. The report examines the journey of becoming aware
of, applying for, and accessing ESAs, particularly focusing on the
barriers that hinder parents from enrolling in the program.
Key findings from Part 3 include:
- Low-income families generally report
significantly lower satisfaction with schools compared to their
higher-income peers. Those low-income families whose children are
enrolled in alternatives to public school report satisfaction
levels equal to and higher than those of high-income families in
public schools. Yet, these families face greater access and
enrollment challenges when opting for school choice.
- ESAs could help 14% more parents
afford private school, but they often fall short for low-income
families. While funds are the same across income levels, low-income
families struggle to supplement them, limiting their school choices
compared to higher-income families.
- Among parents who attempted but
decided to discontinue their journey in signing up for ESAs, 25%
dropped out before receiving approval to participate, 38% had
difficulty getting approved, 17% struggled to find providers, and
21% encountered issues with payment/reimbursement.
- The top administrative barriers for
parents and providers particularly concern support for parents,
compliance for providers, and payment processes for both.
Adam Newman, Co-founder and Managing Partner at Tyton Partners
and co-author of Choose to Learn, says, “The insights from our
Paying for Choice series underscore the critical role ESAs can play
in expanding educational opportunities for families across the
socioeconomic spectrum. While it’s encouraging to see what ESAs can
do to help parents, there are significant barriers that must be
addressed. It’s imperative that we develop more robust support
systems to ensure that all families, regardless of income, can
effectively navigate and benefit from ESA programs. By doing so, we
can move closer to a more equitable and accessible educational
landscape for every child in America—and we hope the research
serves as a guideline as how to improve.”
Tyton Partners concludes the series with a set of
recommendations ranging from enhancing navigation services to
establishing localized support offices so ESA programs can better
help parents, providers, and researchers make more informed
decisions and improve ESAs. The report also highlights what is
needed to assess the efficacy of ESA programs more broadly,
ensuring they are designed, launched, and refined to provide
stakeholders with the necessary information to make the right
education-related decisions.
Read Paying for Choice 2024 Part 3: Navigating the System of
ESAs here.
About Tyton Partners
Tyton Partners is the leading provider of strategy consulting
and investment banking services to the global knowledge and
information services sector. With offices in New York City and
Boston, the firm has an experienced team of bankers and consultants
who deliver a unique spectrum of services from mergers and
acquisitions and capital markets access to strategy development
that helps companies, organizations, and investors navigate the
complexities of the education, media, and information markets.
Tyton Partners leverages a deep foundation of transactional and
advisory experience and an unparalleled level of global
relationships to make its clients' aspirations a reality and to
catalyze innovation in the sector. Learn more at
tytonpartners.com.
For media inquiries, contact:
Zoe Wright-Neil
Tyton Partners, Director of Marketing and Business Development
zwrightneil@tytonpartners.com