PHOENIX — This week the Arizona Department of Education notified private school owners that a rule change is coming regarding the payment process for private school vouchers.
Beginning July 1st, the state will require ESA account holders to use the state’s contractor, Class Wallet, for all school tuition payments.
Currently, parents can use a financial processing company to pay tuition costs. They also have the option to pay for tuition in another manner and get reimbursed by the state.
That option goes away in July.
“We will send a newsletter to families with this information. This will occur next week,” said department spokesperson Doug Nick in a statement to 12News.
Class Wallet charges a 2.5 percent service fee for payments that it makes directly to schools and vendors. When the requirement regarding tuition payments goes into effect, either the school will absorb the fee or the account holder will be expected to pay the fee, Nick confirmed to 12News.
Class Wallet is a third-party vendor that operates the financial account platform assigned to ESA families when they sign up.
Nick said the 2.5 percent fee will be reduced to 2 percent beginning July 12 when a new contract between the state and Class Wallet goes into effect.
The change also means private schools will be required to partner with Class Wallet to receive ESA tuition payments. Two private school providers spoke with 12News this week and expressed concerns about this requirement. They asked not to be identified.
More than a year ago, as The Arizona Republic has reported, some people criticized Class Wallet, alleging it was unreliable. A state education official said at the time there were faults in the system the company was fixing and they asked the public for patience.
If a private school chooses not to be part of the Class Wallet platform, they will need to notify families they cannot receive ESA payments, Nick said.
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