Nearly 9,000 Katy ISD and Lamar CISD families applied for Texas Education Freedom Accounts this school year, but parents who received awards are finding the money harder to spend than expected.
Two practical problems stand out as about 110,000 TEFA accounts go active statewide: homeschool families cannot use funds for dual-credit college courses, and private schools vary widely on whether they reduce their own financial aid after a family receives a TEFA award.
Dual-credit courses listed but blocked
Houston-area homeschool parent Joseph Parle was approved for the $2,000 TEFA homeschool option and assumed he could put it toward his son's dual-credit college coursework. The TEFA website lists "dual-credit course at a higher education provider" as an eligible expense.
But any college offering such a course must first be an approved vendor on Odyssey, the platform that administers TEFA accounts. When Parle contacted Odyssey, a customer service representative told him she did not think any colleges offering dual-credit courses were available on the platform, KPRC 2 reported Sept. 14.
Parle said he also asked whether the program could pay his son's college directly or reimburse him. He was told neither was possible.
"This was very disappointing as I had anticipated that the $2,000 could be used to defray the costs of his college classes as part of his homeschool curriculum," Parle said.
Private school aid: policies differ school to school
KPRC 2 contacted 286 participating TEFA schools and found responses varied considerably on how TEFA interacts with school-based financial aid.
Calvary Episcopal Preparatory in Richmond, in the Lamar CISD area, requires families applying for its financial aid to also apply for TEFA. The school allows families to use both TEFA and Calvary's aid toward tuition balances.
Grace Christian Academy takes a different approach. It requires families to apply for TEFA but does not offer financial aid when a student receives a TEFA award. Standard tuition discounts for siblings, active military, pastoral families and current employees still apply.
Gateway Academy also asks families to apply for TEFA before being considered for school-based aid, but it allows families to stack both toward tuition.
Those three schools were among the 286 surveyed by KPRC 2 across the Houston area.
TEFA spokesperson Travis Pillow said in a statement to KPRC 2 that the state does not dictate private schools' tuition or financial aid practices but requires schools to treat students the same regardless of whether they receive TEFA. Schools must maintain a written policy explaining how financial aid does not change the amount of tuition charged, according to a May 2026 TEFA news release.
Parents or schools can report concerns about tuition policies at [email protected].
Local numbers and what's next
Katy ISD had 5,108 TEFA applicants for 2026-27, the eighth-highest total in the state, according to Community Impact. Lamar CISD had 3,855 applicants. More than 60 Katy and Fulshear-area private schools have been approved to accept TEFA funding.
Students enrolling in private schools receive $10,474. Homeschool students receive $2,000. Students with disabilities can receive up to $30,000.
Lamar CISD officials told Community Impact in August the district has seen a "minimal number of students" withdraw for private schools. Katy ISD declined to comment on TEFA's enrollment impact.
About 70% of TEFA awardees were previously enrolled in private school or homeschooled, Houston Public Media reported. More than 100,000 students remain on the waitlist. The comptroller's office said Sept. 9 it plans to announce a new application window in the coming weeks.
