Texas families now have access to something that did not exist before 2025: a state-funded education savings account program designed to give scholars more choices in how and where they learn. The Texas Education Freedom Accounts (TEFA) program is a landmark initiative, and for families considering private online education, it could be genuinely life-changing.
But with any new program this large, misinformation spreads fast. Parents are hearing half-truths, outdated details, and flat-out myths that may cause them to dismiss an opportunity that could open extraordinary doors for their children.
At Optima Academy Online, we believe every scholar deserves access to clear, accurate information so their family can make confident decisions. Let’s set the record straight on some of the most common TEFA myths.
Myth #1: “TEFA is only for students leaving public school.”
The Truth: TEFA is open to all eligible Texas families, including those whose scholars are already enrolled in a private school.
Many parents assume the program was created exclusively to pull students away from public schools. While TEFA does prioritize applicants transitioning from public to private school within certain funding tiers, families already enrolled in private school are absolutely eligible to apply. If your scholar is currently attending a private school and that school is an approved TEFA participant, you can apply for funding to help cover educational expenses.
The prioritization system works in tiers based on income and disability status, not exclusively on whether a child previously attended public school.
Myth #2: “Online private schools do not qualify for TEFA.”
The Truth: Accredited online private schools are explicitly eligible to participate in the TEFA program.
This is one of the most important myths to address for families drawn to the flexibility of virtual learning. TEFA does not limit participation to brick-and-mortar schools. Virtual campuses are eligible, provided the school meets specific criteria:
- The school must be accredited by an organization recognized by the Texas Private School Accreditation Commission (TEPSAC) or another accreditor approved by the Texas Education Agency.
- The school must have operated a physical or virtual campus for at least two consecutive school years.
- The school must have an administrative office located in Texas.
- The school must administer a nationally norm-referenced assessment annually to participating scholars in grades 3-12.
For families drawn to the individualized, high-quality learning that online private schools offer, this is excellent news. Flexible, immersive education is no longer something families must fund entirely on their own.
Myth #3: “You have to apply quickly or lose your spot.”
The Truth: TEFA is not a first-come, first-served program.
The anxiety around missing out is understandable, but the TEFA application window was designed with fairness in mind. Families could apply anytime during the designated window without their application being disadvantaged by when it was submitted. Applying on the first day carries no advantage over applying on the last day.
If demand exceeds available funding, the prioritization system applies. Scholars with disabilities whose families earn at or below 500% of the Federal Poverty Level receive first priority. Low-income families follow, then all other applicants depending on remaining funds. Once a scholar is enrolled in the program, they roll over automatically in future years without needing to reapply.
Myth #4: “TEFA will only cover a small fraction of tuition.”
The Truth: TEFA awards are set at approximately $10,474 per student for the 2026-27 school year, with scholars who have disabilities eligible to receive up to $30,000.
The funding amount equals 85% of the statewide average state and local funding per student in Texas public schools. For many private online school families, this covers a significant portion of tuition costs. Scholars carrying an Individualized Education Plan (IEP) may qualify for substantially more, depending on the level of service specified in that plan.
TEFA funds are placed into a state-managed account and distributed quarterly. Unused funds roll over into the following school year, so they do not disappear if every dollar is not spent within a single term.
Myth #5: “TEFA can only be used for tuition.”
The Truth: TEFA funds can be applied to a wide range of approved educational expenses.
While tuition is the most obvious use, TEFA covers much more. Approved expenses include:
- Textbooks and required instructional materials
- Tutoring and private classes
- Academic assessments
- Educational therapies
- Required school uniforms
- Transportation to approved providers
- Computer hardware and software (up to 10% of the annual award)
For families choosing a technology-forward learning environment, the inclusion of educational technology as an approved expense is particularly worth noting. Immersive, technology-enhanced learning resources may qualify as part of a scholar’s approved educational expenses.
Myth #6: “My child needs an IEP to qualify for any TEFA funding.”
The Truth: All eligible Texas students can apply for TEFA. An IEP unlocks additional funding and priority status, not basic eligibility.
An IEP is not required to apply. Any child who is a U.S. citizen or lawfully present in Texas and eligible to attend a Texas public school can apply for TEFA. An IEP matters for funding level and prioritization. Scholars with a qualifying IEP on file with the Texas Education Agency may receive enhanced funding and be moved to the top of the priority queue. Families who believe their child may have an undiagnosed disability are encouraged to reach out to their local school district, as districts are required to support families in obtaining evaluations and IEPs for TEFA purposes even if the child has never attended a public school.
Myth #7: “Once we receive TEFA funds, we lose access to all public school services.”
The Truth: Public schools remain obligated to support TEFA families whose children have disabilities.
This concern stops many families before they even explore the program. The reality is more nuanced. While a scholar using TEFA cannot be enrolled full-time in a public or charter school simultaneously, Texas school districts remain obligated to provide evaluations and IEP support for children with disabilities participating in TEFA. Public schools may also offer individual courses on an unbundled basis that TEFA families can access, without the scholar counting as a full-time enrolled student.
What This Means for Texas Scholars and Their Families
The Texas Education Freedom Accounts program is real, substantial, and available now. For families who have always believed their scholar deserved something different but could not access it financially, TEFA represents a genuine shift in what is possible.
Accredited online private schools, including those offering immersive, technology-enriched classical education, are fully part of this picture. The barrier between a high-quality, personalized learning environment and the families who need it most has never been lower.
At Optima Academy Online, our mission has always been to break barriers to exceptional education. As a Cognia-accredited K-12 private online school, we understand the weight of the decisions families are making and the importance of having clear, accurate information before taking that step.
If you are a Texas family exploring your options, we encourage you to visit the official TEFA program website at educationfreedom.texas.gov for current program details, eligibility information, and application guidance. And if you would like to learn more about what an OAO education looks like for your scholar, we welcome that conversation.
