So you want to be an education service provider?

There is a brand new K-12 scholarship opportunity in South Carolina, and it’s not just for school tuition. Scholarship funds under the Education Scholarship Trust Fund program can be used for tutoring, therapies, curriculum, educational materials, individual classes, and so much more. Parents are able to have flexible funding to use for their child’s unique needs, and vendors are able to serve a wider population and advertise themselves as accepting these scholarship funds. It is a win-win for everyone involved.

Who is eligible to be a provider?

South Carolina law defines providers in this program (known as “education service providers” as “a person or organization approved by the department that receives payments from ESTF to provide educational goods and services to scholarship students.”

That gives a lot of flexibility for who can register as a provider; any person or organization providing an approved expense could be a provider.

A full list of approved expenses can be found here.

What are the requirements for providers?

Education service providers must agree to follow provisions of the ESTF law. The full provider attestation can be found here. The law states that providers must:

• Comply with all applicable health and safety laws or codes;
• Hold a valid occupancy permit if required by the municipality in which the education service provider is located;
• Not unlawfully discriminate on the basis of race, color, or national origin. This item shall not be interpreted to preclude any independent or religious educational provider from exercising an exemption allowed under federal law;
• Conduct and maintain records of completed criminal background checks on employees. An education service provider that is not an accredited or licensed school must submit documentation of completed background checks to the department as part of their initial application. All education service providers must exclude from employment anyone whois not permitted by state law to work in a school, reasonably might pose a threat to the safety of students, or is listed on federal, state, or other central child abuse registries.
• Provide parents with an invoice, for services purchased, or a receipt for goods purchased for all qualifying expenses
• Make sure there are no conflicts of interest. The law states: “A person paid by, contracted with, employed by, or having a financial interest in an education service provider shall not be allowed to serve on the board of an organization contracting for services with the [SC Dept of Education], serve on the board of a vendor or private management firm contracted to manage [the ESTF accounts], on the board of any other provider of contracted-for services…or on the ESTF Review Panel.” (if you’re worried about this, read Section 59-8-150(G) of the ESTF law for more details).
• If receiving more than $50,000 from ESTF in one school year – must agree to have a surety bond.

Providers giving students full-time educational instruction (aka if you are a school) have a few other requirements to follow. They must:

• Have an educational curriculum that includes courses set forth in the state’s diploma requirements and to meet the compulsory attendance and State Board of Education approval requirements 
• Ensure that all their ESTF students are given the required standardized testing
• Collect high school graduation information of scholarship students to report
• Ensure that the parent of a scholarship student taking testing receives a written report of the student’s performance on each assessment. The report must include the student’s score on the assessment and an indication of how the student’s assessment performance compares to other South Carolina students.
• Provide standardized test results for all ESTF students to the SC Department of Education annually, disaggregated by grade level, gender, family income level, race, and English-learner status.

You can access the full provider guide for the ESTF program at this link.

State law clearly protects the freedom of each education service provider. It states that all education service providers (barring those that are public schools) are “not an agent of the state or federal government, therefore:

• (1) the department or any other state agency may not regulate the educational program beyond what is set forth in this chapter of an approved education provider that accepts funds from an account;
• (2) the creation of the program does not expand the regulatory authority of the State, its officers, or a school district to impose regulation of education service providers beyond those necessary to enforce the requirements of the program;
• (3) the freedom of education service providers to provide for the educational needs of scholarship students without governmental control must not be abridged;
• (4) an education service provider that accepts payment from an ESTF account pursuant to this chapter is not an agent of the state or federal government; and
• (5) education service providers shall not be required to alter their creeds, practices, admissions policy, or curriculum in order to accept payments from an ESTF account.

How do I sign up as a provider?

You can access the form to sign up as an education service provider here. It is a pretty easy process! Select the type of provider you are and fill out the relevant questions. You should hear back within 10 business days.

Tutors will be expected to have background checks and at least a bachelor’s degree. Therapists will be expected to have a valid license in their respective fields.

Who do I contact if I have questions?

Not sure about the program requirements? Unsure what category you fit into as an education service provider? Don’t know if you qualify as a provider at all? Contact us at info@scschoolchoice.com and the SC Department of Education at ESTFProgram@ed.sc.gov. We are working with providers on a daily basis to make sure they are able to get onboarded and understand how the program works.