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Understanding special needs scholarships

Learn about Special Needs Scholarships, funding options, eligibility, and what expenses they cover for families of children with disabilities.
Lisa Thorsen
Written byLisa Thorsen
4 min read
Key takeaways
  • Special needs scholarships provide crucial financial assistance for families with children who have disabilities, covering expenses like private school tuition, homeschool materials, and therapy services
  • Eligibility varies by state, often requiring proof of a disability, and while these scholarships can enhance educational options, accepting them may mean relinquishing certain rights under the IDEA.

A Special Needs Scholarship is a government-funded program that helps families with children who have disabilities pay for education outside public schools. It covers various costs like private school tuition, homeschool materials, and therapy services.

As of 2024, 12 states have enacted universal or near-universal Education Savings Account (ESA) programs, with Arizona's program alone serving over 75,000 students — making state-funded homeschooling more accessible than ever (EdChoice, 2024). Research from the National Home Education Research Institute (NHERI) shows that homeschooled students typically score 15 to 25 percentile points higher than public school students on standardized academic achievement tests.

What is a special needs scholarship?

Special needs scholarships are programs funded by the government. They help families with children who have disabilities pay for educational costs outside public schools. These scholarships focus on kids with IEPs, 504 plans, or medical diagnoses from licensed professionals. Each state has different rules, but they usually cover private school tuition, homeschool materials, tutoring, and therapies like speech and occupational therapy. The funding amounts can be higher than regular education programs due to the costs of educating special needs students.

Eligibility requirements

Eligibility for these scholarships varies by state. Most require proof of a disability, like an IEP or a 504 plan, or an evaluation from a licensed doctor or psychologist. This proof usually needs to be recent, within the last 1-3 years. Students must live in the state and can't be enrolled in public school at the same time. Some states, like Florida, prioritize certain disabilities, naming conditions like autism and Down syndrome. Unlike general programs, income limits rarely apply, recognizing that special needs education can be costly for all families.

Covered expenses

Special needs scholarships cover a wider range of expenses compared to general education savings accounts (ESAs). They typically include private school tuition and homeschooling costs. Most programs also cover therapy services such as speech therapy, occupational therapy, and physical therapy. You can also use funds for assistive technology, specialized tutoring, and even transportation to services. Some programs allow you to save unused funds for college. The big difference is that these scholarships include crucial therapeutic services that many special needs kids need.

Important considerations

If you accept a special needs scholarship, you may have to give up some rights under the IDEA (Individuals with Disabilities Education Act). This means public schools won't have to provide a Free Appropriate Public Education anymore, and the protections of an IEP won't apply. For many families, this tradeoff is worth it since the scholarship funds often exceed what they'd get in public services, giving them more decision-making power. However, it's essential to understand this change before enrolling. Providers usually need state approval, and you'll need to keep receipts for all spending.

The bottom line

Special needs scholarships can be a game-changer for families with children who have disabilities. States like Arizona and Florida offer significant support—often between $10,000 and $40,000 each year. This funding helps with therapy, specialized curriculums, and services that can be tough on family budgets. These programs let parents choose educational options that fit their child's needs better than what local public schools might offer. If your child has a documented disability, look into your state's special needs scholarship program—it could open up great resources for you.

Frequently Asked Questions

Lisa Thorsen
Written by
Lisa Thorsen

Co-founder, BetterSchool

Lisa is the co-founder of BetterSchool and a homeschool mom of three. BetterSchool administers the largest independent homeschool community in the country — over 350,000 families across all 50 states.

When COVID hit, Lisa and her husband pulled their children out of school and hit the road. Homeschooling wasn't the plan — it was a necessity. But somewhere along the way, the family fell in love with it: the time together, the ability to tailor lessons to each child's interests, learning at their own pace, the freedom to travel, eating healthy on their own schedule, and the countless other benefits that come with homeschooling.

As they traveled, Lisa kept discovering incredible hands-on learning experiences that most homeschool families had no way of finding. She built BetterSchool to make it easy for every family to find and book the experiences that make learning come alive.

Through her community, Lisa has helped hundreds of thousands of parents navigate homeschooling, while also helping local businesses find and serve the homeschool community. She is the former managing partner of a law firm focused on business law and mergers and acquisitions — BetterSchool is her second technology startup. She holds a J.D. from California Western School of Law and a B.A. from Penn State.

Related articles

Understanding ieps for homeschooling familiesWhat you need to know about 504 plansUnderstanding speech therapy for homeschoolersUnderstanding occupational therapy for homeschool familiesUnderstanding assistive technology for homeschoolers

Table of Contents

  • What is a special needs scholarship?
  • Eligibility requirements
  • Covered expenses
  • Important considerations
  • The bottom line
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