Many Polk, Dallas, Warren and Madison County families now see a number left over in their Students First ESA after tuition and fees are paid, which happens whenever tuition and fees come in below the 2026-27 award of $8,148. That leftover is not lost at the end of June. Iowa law lets it ride forward, but only while the student stays in the program, and it has a hard stop at graduation or age 20.
Last verified: November 2026
Does unused Iowa ESA money roll over for Des Moines families?
Yes: money left in a Students First ESA at the end of a school year stays in the student's account and can be spent in any later year in which the student participates in the program.
Iowa Code section 257.11B, subsection 6(c), says remaining money "shall remain in the pupil's individual account" for qualified expenses in future fiscal years, until the student becomes ineligible or the balance is transferred to the state. The Iowa Department of Education's ESA page, updated October 2026, puts it plainly: funds from a prior year can be used in another year the student is an ESA participant.
There is one catch in how Odyssey, the program administrator, applies carried-over money. Leftover funds from 2025-26 that moved into a 2026-27 account are applied to tuition and fees first, just like the new deposit. So a balance cannot be parked for extras while next year's tuition goes unpaid.
What happens to an Iowa ESA balance when a student graduates, switches schools or turns 20?
The balance survives a move to public school and a skipped year, but it goes to the state general fund when the student graduates from high school or turns 20, whichever comes first.
| Situation | What happens to the balance | Source |
|---|---|---|
| Student returns to an accredited nonpublic school next year | Carries forward; applied to tuition and fees first | Iowa Code 257.11B(6)(c); Odyssey |
| Student moves to a public school such as Des Moines Public Schools | Stays in the ESA and can be used in a future ESA year | Iowa Department of Education FAQ |
| Student skips a year of the program | No new deposit for the skipped year; earlier balances remain usable on return | Odyssey |
| Student withdraws and the school owes a refund | Refund goes back to the ESA first, up to the amount the ESA paid | Iowa Department of Education FAQ |
| Student graduates from high school or turns 20 | Remaining money is transferred to the state general fund | Iowa Code 257.11B(8) |
A Waukee or Ankeny senior with a balance should therefore plan purchases before graduation; nothing in the statute lets the money follow the student to college tuition.
What can a Des Moines family buy with leftover ESA funds?
After each semester's tuition and fees are paid, the remainder can be spent in the Odyssey Marketplace on qualified expenses such as textbooks, tutoring, curriculum, software and educational therapies.
Section 257.11B(1)(b) also lists course materials, nonpublic online course tuition, department-approved vocational and life skills education, materials and services for students with disabilities (including paraprofessionals), standardized test fees, and Advanced Placement or college admission and credentialing exam fees. The same law excludes transportation, food, clothing and disposable supplies such as paper, notebooks, pencils and art supplies. Purchases must go through the Odyssey Marketplace; buying elsewhere and asking for reimbursement does not work. Plug your school's tuition into our ESA calculator to see what might remain.
Rollover vs reimbursement: what the Students First ESA is not
The ESA is not a cash account, not a college savings plan and not a refund to parents; it is a restricted balance spent only on approved education costs through one marketplace.
- It does not pay out remaining money to the family at graduation.
- It does not cover postsecondary tuition, only college admission and credentialing exam fees.
- It does not let families skip tuition to save the balance, because tuition and fees are paid first each semester.
Our guide to Iowa's tuition and textbook tax credit explains how that separate credit sits alongside the ESA.
Which Iowa ESA dates should Des Moines families watch this school year?
The half-year ESA window closes at 11:59 p.m. on November 15, 2026, spring funds for full-year students become available December 1, and half-year families must confirm tuition by January 14, 2027.
The half-year award is $4,074. Full-year families who miss the January 14 spring step do not lose eligibility, according to the Department of Education. Our 2026-27 ESA deadline calendar and the half-year ESA explainer cover each step.
Frequently asked questions
Does unused Iowa ESA money roll over for Des Moines families?
Yes. Leftover funds stay in the account for future years in which the student participates, and they are applied to tuition and fees first.
What happens to an Iowa ESA balance when a student graduates, switches schools or turns 20?
It stays through a move to public school or a skipped year, but goes to the state general fund at high school graduation or age 20.
What can a Des Moines family buy with leftover ESA funds?
Qualified expenses in the Odyssey Marketplace, such as textbooks, tutoring, curriculum, software, therapies and AP or college admission exam fees.
Rollover vs reimbursement: what the Students First ESA is not
It is not cash, not a college fund and not a refund to parents; it is a restricted balance for approved education costs.
Which Iowa ESA dates should Des Moines families watch this school year?
November 15 for the half-year window, December 1 for spring funds and January 14, 2027 for half-year tuition confirmation.
Sources
- Iowa Department of Education: Education savings accounts
- Iowa Code section 257.11B: Education savings accounts
- Odyssey: How does funding roll over? (2026/27 Students First ESA)
- Odyssey: How much funding will eligible families receive for 2026-27?
- Iowa Department of Education: Students First Act ESA parent/guardian training
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