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State Board affirms ALJ in Education Savings Account appeal after parent cites incorrect guidance from administrator

November 20, 2025 | Education, Iowa Department of (IDOE), Executive, Iowa


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State Board affirms ALJ in Education Savings Account appeal after parent cites incorrect guidance from administrator
The State Board of Education on [date not specified] upheld an administrative law judge's ruling that denied an Education Savings Account (ESA) payment to a student whose parent said she relied on incorrect guidance from the program administrator.

Parent Sarah Ferning (appearing by Zoom) told the board she repeatedly contacted Odyssey, the ESA third-party administrator, and was told her son would remain eligible and funds would be available despite not attending a private school before the program's Sept. 30 enrollment deadline. "I was given wrong information," Ferning said, asking the board to reverse the department's decision and refund tuition she paid after transferring her son.

Assistant Attorney General Lindsey Browning, representing the Department of Education, acknowledged Ferning's advocacy but urged the board to defer to the administrative law judge's factual findings. Browning noted a "fundamental statutory requirement" that a student be enrolled full time in a nonpublic school on or before the statutory deadline, and that the record did not show the student met that condition.

Board members questioned how parents are directed to get eligibility information and whether Odyssey or department communications are the first point of contact. Department counsel said eligibility rules and deadlines are posted on the Department of Education website and that Odyssey handles technical, operational communications; the department also said it issues at least two program notices to participants.

After board discussion—during which several members expressed sympathy for Ferning but noted limited authority to override statute—the board moved to affirm the ALJ's proposed decision. The motion carried on a voice vote.

The board and department discussed follow-up steps to reduce future misinformation, including clearer communications and additional coordination with Odyssey, but took no disciplinary action in the matter. The ALJ's decision and the board's action leave the statutory deadline and enrollment requirement as controlling factors in ESA eligibility for this case.

Next steps: The decision affirms the ALJ; the department and board discussed communicating lessons learned to Odyssey and parents to avoid similar disputes in future application cycles.

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