FSTC Frequently Asked Questions

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Public Schools

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Families

FAQs

For Families

What is the federal scholarship tax credit, and how does it differ from other state tax credit scholarship programs?

Officially launching on January 1, 2027, the Federal Scholarship Tax Credit (FSTC) provides a federal income tax credit of up to $1,700 for individual taxpayers who donate to approved Scholarship Granting Organizations (SGOs). While many state-level tax credit programs focus strictly on private school tuition, FSTC scholarships are available to students in public, private, or home education settings. Further, scholarships can cover a wide range of educational expenses beyond tuition, including tutoring, therapy, instructional materials, and technology.

How do I find a Scholarship Granting Organization?

How do I find out if my child is eligible to receive a scholarship?

What educational expenses are allowable under the FSTC?

Are FSTC scholarships available in all 50 states?

How is the FSTC funded?

Can I donate, receive a tax credit, and receive a scholarship for my own child?

My state has not yet opted into the FSTC. What can I do?

For Public School Administrators

Will the Federal Scholarship Tax Credit (FSTC) reduce funding for public schools?

The FSTC is funded entirely by individual donations. Unlike many traditional tax credit programs, public school students are fully eligible to receive scholarships for a wide variety of educational expenses.

How can I leverage the FSTC to improve educational outcomes for the students at my school?

With the FSTC, public school students gain access to new scholarships designed to support their learning and growth outside the classroom. By working with SGOs, you can help students at your school receive scholarships that can pay for valuable educational enrichments, including:

Educational resources, like books and school supplies
Tutoring
Transportation
Afterschool enrichment programs
Technology
Educational therapies

How can the FSTC help students at my school with educational enrichment outside of school hours?

For many families, the largest barriers to educational success exist outside of the school day. Because scholarships can be used for high-dosage tutoring, specialized educational therapies, SAT and ACT preparation, and vocational readiness tools, the FSTC can help bridge the enrichment divide. These services can also help students in public schools overcome the impact of the “summer slide,” which is one of the most significant contributors to the lifelong wealth gap in the United States.

My state has opted into the FSTC. How can I help the students at my school receive FSTC funds?

My state has not yet opted into the FSTC. What can I do?

For Private and Religious School Administrators

What types of schools are eligible to receive scholarship funds under the FSTC?

Any public, private, or religious school program providing K-12 education can accept FSTC-funded scholarships, provided their state has opted into the program.

Will accepting scholarship dollars under the FSTC limit my school’s autonomy?

Are students required to take standardized tests?

My state has not yet opted into the FSTC. What can I do?

For Scholarship Granting Organizations

What does an SGO need to do to participate in the FSTC?

To participate in the FSTC and accept scholarship donations, an SGO must:

Be a 501(c)(3) and not a private foundation.
Prevent the commingling of contributions with other funds received.
Be included on the list submitted by a state governor to the U.S. Treasury.
Provide scholarships to 10 or more students who do not attend the same school.
Spend 90% or more of its income on scholarships.
Use funds exclusively for educational expenses.
Prioritize and award scholarships to students in accordance with the law.

What educational expenses are eligible under the FSTC?

Federal regulations aren't finalized yet. Is now the right time to commit to a platform?

We're expecting significant growth once the FSTC launches. Can ClassWallet handle rapid scale?

We're already running a scholarship program on another system. What does transitioning look like?

How does ClassWallet help us demonstrate the 90% income-to-scholarships requirement?

How do we support families who aren't tech-comfortable or don't speak English?

ClassWallet is a web-based platform that works in any modern browser on a phone, tablet, or computer, with no app or software download required. We have adopted WCAG 2.1 Level AA as our accessibility standard, and third-party auditors conduct periodic accessibility audits to support ongoing conformance. The platform supports industry-standard screen readers, including the free NVDA screen reader. It also includes an accessibility widget with display adjustments and the option to view content in 16 languages.

Families who need more help can reach our U.S.-based support team by phone, chat, or email. English- and Spanish-speaking agents are available, and calls are answered by trained agents, not chatbots.

What does ClassWallet's security and compliance posture look like?

ClassWallet holds SOC 1 Type 2 and SOC 2 Type 2 certifications and aligns with NIST 800-53r5, supporting the protection of sensitive program data through tokenization of financial data, logical data separation, and role-based access controls. Our integrated banking providers have appropriate PCI-assessments / certifications and are FDIC-insured. Data is hosted on U.S.-based AWS infrastructure.

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