ISAC Student PortalCollege Illinois!® Prepaid Tuition: A Safe, Secure Way to Pay for College
Thursday, June 10, 2010
Nearly 14,000 students have utilized tuition benefits at 768 colleges and universities nationwide thus far
CHICAGO – Prepaid tuition plans such as the College Illinois!® 529 Prepaid Tuition Program remain a safe, secure way for families of all income levels to save for college, according to new data from the College Savings Plan Network (CSPN).
“Data from the first half of this year demonstrates that prepaid 529 college savings plans continue to be one of the most beneficial ways for families to plan ahead and save for college,” said CSPN Chair Joan Marshall. “Every state sponsoring a prepaid plan has continued to pay the promised tuition benefits to enrollees, and they remain a reliable option for risk-averse families seeking effective savings plans to send their children and grandchildren to college.”
With over $1 billion in assets, the College Illinois! 529 Prepaid Tuition Program is solid. Since the program’s inception in 1998, families have trusted the program to provide tuition benefits for more than 66,000 future college students. In fact, nearly 14,000 students have already utilized College Illinois! benefits to pay for college.
“The hardest part of paying for college is actually starting, and we salute those who have already begun saving,” said ISAC Executive Director Andrew Davis. “A College Illinois! Prepaid Tuition contract is a great way for families to accomplish their college savings goals by locking in a price for tomorrow’s tuition today.”
The College Illinois! 529 Prepaid Tuition Program offers the following tips for those evaluating college investment and savings options with safety and security in mind:
Look for a way to keep pace with tuition inflation.
Tuition increases average between eight and nine percent annually, and the cost of a four-year college degree for today’s newborn is projected to top $180,000. Make sure to account for these increases. A College Illinois! plan delivers benefits purchased, keeping pace with increases in tuition.
Evaluate the plan’s tax implications or advantages.
IRS-designated 529 plans such as College Illinois! offer tax benefits. Consult a tax advisor for more information, including tax advantages and specific federal and state deductions.
Examine the terms of the investment with an emphasis on safety and security.
Mitigate risk and seek security with a legally-binding contract while meeting tuition needs. Unlike other college savings plans, a College Illinois! 529 Prepaid Tuition Program contract between the purchaser and the State of Illinois ensures tuition and fee benefits for college, regardless of fluctuations in the market.
Evaluate the plan for flexibility.
Select a plan that may be utilized at nearly any institution, public or private, in-state and out-of-state. When a College Illinois! beneficiary is of college age, he or she can use benefits at any Illinois public university or community college and apply them at most public and private schools across the nation. Benefits have been used at nearly 800 colleges so far.
Account for the “what ifs.”
Make sure there is an “out” for the investor if the child receives a scholarship or doesn’t attend college. College Illinois! allows families to change beneficiaries and benefit levels, utilize benefits for graduate school, and return the initial investment in the event a child does not go to college.
Now is the time to consider prepaid tuition as a means to combat tuition inflation and stock market volatility while saving for college by locking in June prices. Prices adjust on the first day of each new month, every month, so it pays to purchase sooner rather than later.
Parents and grandparents can purchase this secure option for their child’s educational future at the lowest prices today by visiting http://www.529prepaidtuition.org/, or call toll-free at (877) 877-3724 for program information, materials and enrollment guidelines. Purchase as little as one semester at a community college to nine semesters at a public university. Various payment options are available, including monthly and annual installments. The last day to take advantage of current pricing is Wednesday, June 30, 2010.
Administered by the Illinois Student Assistance Commission, the College Illinois! 529 Prepaid Tuition Program is a secure college funding option because benefits do not fluctuate with the stock market. Since the program’s inception in 1998, more than 66,000 prepaid tuition contracts have been purchased. ISAC’s commissioners are responsible for the overall management of the Program and its investments, including hiring a qualified slate of investment managers and other professionals.
More about College Illinois!® 529 Prepaid Tuition Program Pricing and Plans
A tiered pricing system called SmartChoice, introduced in 2008, makes plans even more affordable than ever before. SmartChoice pricing provides three distinct price and benefit levels (Community College, University and University+) with different payment options. The plans are completely flexible and let the purchaser choose a pricing option that best matches their financial needs and realities. Combination plans including four semesters at a community college and four semesters at a university level are also available. Various payment options include monthly and annual installments and multiple down payment levels. In addition, program beneficiaries can choose to attend college anywhere because benefits can be used outside of the state at public and private institutions nationwide.
Upon purchasing a contract, Illinois taxpayers can annually deduct up to $10,000 per individual or $20,000 for married couples filing jointly, and all plan earnings are exempt from state and federal taxes. Neither ISAC nor the College Illinois! 529 Prepaid Tuition Program can provide legal or tax advice. Please consult a professional tax advisor concerning federal and state tax implications before purchasing a contract.
To enroll in the College Illinois! 529 Prepaid Tuition Program, visit http://www.529prepaidtuition.org/, or call (877) 877-3724 for program information, materials and enrollment guidelines.
About the Illinois Student Assistance Commission:
The Illinois Student Assistance Commission provides students of all ages and backgrounds with the resources and support to obtain financial aid for higher education. A state agency, ISAC has paved the path to post-secondary education with innovative programs for more than 50 years. The commission continued its mission to make college accessible and affordable for Illinois students by administering over 183,000 grants and scholarships totaling over $430 million in FY2009 alone.
The Commission provides educational funding with student loans, as a loan guarantor and via numerous public programs such as the Monetary Award Program (MAP), the Illinois Veteran Grant and the College Illinois!® 529 Prepaid Tuition Program. Students and families have free access to a wealth of financial aid and college planning information at ISAC’s family of websites available at http://www.knowhow2goillinois.org/ and http://www.529prepaidtuition.org/.
About College Savings Plans Network (CSPN)
College Savings Plans Network (CSPN) is a leading voice for Section 529 College Savings Plans, one of the most popular, convenient and tax-advantaged ways to save for college. CSPN is a not-for-profit association affiliated with the National Association of State Treasurers (NAST) that brings together state administrators of 529 savings and prepaid plans as well as their private sector partners. Information that families of all income levels can use to make informed saving decisions is available on CSPN’s Web site,www.CollegeSavings.org.
Contact
Illinois Student Assistance Commission (ISAC)
100 W. Randolph Street, Ste. 3-200
Chicago, IL 60601
312.814.3679
