PREPAID PERSPECTIVES

Saving for College Doesn’t Have to Be Taxing

noreply@blogger.com (College Illinois!) — Wed, 10 Mar 2010 17:25:00 +0000

A recent National Retail Federation (NRF) survey released March 2 found that after two years of paying down debt and skipping family vacations, many Americans plan to cautiously start spending their tax refunds once again.

According to the survey, 12.5 percent of people expecting a refund plan to treat themselves or their families to a major purchase such as a new television, furniture or car, up from 11.0 percent last year. Others will stash their refund away in savings (40.3%), put it towards everyday expenses (28.8%) or go on vacation (10.0%).

For parents of newborn through middle school-aged children, we suggest no better purchase than a College Illinois! 529 Prepaid Tuition Program contract. A prepaid tuition contract allows families to save for college while locking in a single, reliable number for tuition and fees, avoiding the triple terrors of market volatility, tuition inflation and taxes (yes, there are numerous tax advantages).

The tax season is a great time to start saving for a child’s college education, and a College Illinois! Prepaid Tuition plan allows parents the option of choosing the right choice for them—you select the number of semesters purchased, the type of plan (community college, university or university plus) and even the payment schedule. You can always start out small and add more units or upgrade to another benefit level. It’s that easy.

New customers can research plan options, buy a contract and even make their first payment at the end of the online application process. One-stop shopping means it’s easier than ever to purchase a College Illinois! 529 Prepaid Tuition Program contract and start on the road to saving for college.

The College Illinois! 529 Prepaid Tuition Program is the safe, secure way to provide for a child’s education. For more information, call toll-free at (877) 877-3724, e-mail 529info@isac.org or visit www.529prepaidtuition.org to download program information, guidelines and materials.

For more information:
Tonya Polk
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
529info@isac.org
(877) 877-3724

Don’t Get Stuck in the Middle

noreply@blogger.com (College Illinois!) — Wed, 03 Mar 2010 20:55:00 +0000

It’s hard to pinpoint the exact moment in time when destiny defined fate, but for many it likely occurred during the middle school years. Perhaps it started the day you wandered into a chemistry lab or when your BFF convinced you to join the band even though you’d never played an instrument. Who knew you were a budding star that soon would be good enough to sit First Chair in the horn section?

Middle school is a curious time of exploration and discovery—exploration for students looking to better define their interests, discovery for parents committed to supporting those interests with opportunities that help refine the new-found talents. For some families this could mean making interest-centered play dates. Others—focused more on college—may research schools and calculate tuition costs.

To spotlight the middle school experience, the National Association of Secondary School Principals has designated March as National Middle Level Education Month. In honor of National Middle Level Education Month, the Illinois Student Assistance Commission is urging parents to embrace the middle school spirit of discovery by exploring the options available to help them save for and pay for college.

There are several options available to parents and grandparents who want to provide for a child’s college education. Arguably the simplest route is to just start saving—open a bank account, add money when you can and watch it grow. What could be easier?

Not so fast. The savings may not grow fast enough to keep pace with increases in tuition (average 6 to 8 percent per year). You could invest, but these funds will be subject to fluctuations in the financial market. A big downturn could wipe out the whole lot.

Waiting and hoping for financial aid is always an option but it may not be enough or you might not qualify at all. Plus, as more families become eligible and aid budgets shrink, fewer dollars may be available from this source.

If you have more time and need a more reliable option, consider the College Illinois!® 529 Prepaid Tuition Program, a safe, secure program that lets families save on the cost of college while saving for college by locking in a price today. The College Illinois! 529 Prepaid Tuition Program is a contract between the purchaser and the State of Illinois not subject to market fluctuations or increases in tuition.

Benefits keep pace with increases in tuition and fees and can be applied at almost any college or university in the United States, and even at international postsecondary institutions recognized by the U.S. Department of Education as eligible to receive federal financial aid. Parents and grandparents can rest assured benefits will be available when their child or grandchild is ready for college.

To discover how much you can save with the College Illinois! 529 Prepaid Tuition Program, visit www.529prepaidtuition.org to calculate your cost, research plan choices and peruse the pricing schedule. Then enroll and make your first payment online. Various payment options are available, including monthly and annual installments.

For more information:
Tonya Polk
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
529info@isac.org
(877) 877-3724

Early Planning is the Key to Saving for College

noreply@blogger.com (College Illinois!) — Wed, 24 Feb 2010 20:21:00 +0000

Donning winter gear with shovel in hand, I gulp a sip of coffee for warmth then set out to clear what seems like a mountain of snow piled atop a mountain of snow left over from the last winter storm that walloped Chicago.

In that moment, earlier this week, it occurred to me that Illinois sure could teach the East Coast a thing or two about snow management. Despite heavy snow and frigid temperatures, Illinois rarely experiences work stoppages and corporate shutdowns akin to those that paralyzed the nation’s capital last week.

Make no mistake, Chicago winters are cold, wintry and wet. Illinois averages 38 inches of snow per year—that’s three feet and counting as we’ve already exceeded that total this season and forecasters warn there could be more before it is said and done. Heck, it is snowing again today.

So how does the city that works keep working through all that? The key is planning. Pre-planning lets sanitation crews get ahead of the snow—salting streets even before it starts to fall—and keep up, with regular street plows scheduled every few hours until the system passes.

The same principles, starting early and keeping up, also apply to planning for future college expenses. Fortunately, Illinois has a solution for this too, the College Illinois!® 529 Prepaid Tuition Program—a safe, secure college funding program that lets families start early and keep pace with tuition increases.

How early? From day one. Newborns are eligible at birth, so parents and grandparents can enroll a child on the day he or she is born. That’s a valuable benefit when you consider that a child born today is projected to incur college costs of more than $180,000 at a four-year, public university.

Get started for just about $45 a month (buys one university semester for a newborn) or go all out with a lump sum payment for all four years. Buy 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. Either way, starting early means you save on future tuition and fees.

The beauty of the College Illinois! 529 Prepaid Tuition Program is that it lets families save on college while saving for college. Unlike college savings plans, College Illinois! 529 Prepaid Tuition plans are not subject to fluctuations in the financial market. Your prepaid tuition plan is a low risk, tax-advantaged contract between you and the state that provides tuition benefits when your child or grandchild is ready for college.

Visit www.529prepaidtuition.org to calculate your college costs and estimate how much you’ll need to save for college. Then research College Illinois! 529 Prepaid Tuition Program plan choices and compare.

But don’t delay--you’ll save even more if you enroll today because prices adjust on the first day of each new month. To save on future college tuition and fees with the College Illinois! 529 Prepaid Tuition Program, enroll before Sunday to lock in February pricing.

For more information:
Yuri Zamostin
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
529info@isac.org
(877) 877-3724

February is Financial Aid Awareness Month

noreply@blogger.com (College Illinois!) — Tue, 09 Feb 2010 21:50:00 +0000

For the shortest month of the year, February sure is busy in Illinois. There was the early primary election on Feb. 2, Super Bowl Sunday, and this week, love birds will flock to the malls.

But most importantly, February is Financial Aid Awareness Month and the Illinois Student Assistance Commission (ISAC) has one message in preparing for college expenses: start early!

When it comes to planning for college, a good start is an early start whether you have preschoolers or high schoolers.

For parents of high school seniors, now's the time to fill out the Free Application for Federal Student Aid (FAFSA). Completing the FAFSA early increases chances to secure financial aid for college. To complete the FAFSA online, visit www.FAFSA.gov.

For help completing the FAFSA, attend a FAFSA workshop on College Goal Sunday, Feb. 21. Volunteers and counselors will be on hand to assist families who need help completing federal financial aid forms. Visit www.collegezone.com/calendar for list of financial aid and FAFSA completion events near you.

ISAC is encouraging families with younger children to explore the College Illinois!® 529 Prepaid Tuition Program. Unlike a college savings plan, 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.

A child born today is projected to incur college costs of more than $180,000 at a four-year, public university, but prepaid tuition benefits keep pace with the increases in tuition and fees equal to those found at in-state, public institutions. So the College Illinois! 529 Prepaid Tuition Program lets families save on college while saving for college by locking in a price today for future tuition and fees. When a beneficiary is ready to go to college, he or she can choose to attend almost anywhere because benefits can be used at Illinois public universities and community colleges or applied at public and private institutions nationwide.

Now is the time to purchase this secure option for a child’s educational future at the lowest prices. Parents and grandparents can 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.

To learn more about the College Illinois! 529 Prepaid Tuition Program or attend an upcoming College Illinois! presentation, email 529info@isac.org or enroll online at www.529prepaidtuition.org.

For more information:
Tonya Polk
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
529info@isac.org
(877) 877-3724

Paving the Road to College With Prepaid Tuition

noreply@blogger.com (College Illinois!) — Wed, 27 Jan 2010 22:23:00 +0000

Get the coordinates before you sail—sage advice for world travelers and savvy savers. Watch one episode of the 1960’s hit series “Gilligan’s Island” and you’ll understand why.

Experienced travelers appreciate the value of charting a course before starting a long trip. Mapping the route ensures safe arrival and gives travelers peace of mind about the journey.

Savers, too, can benefit from this conventional wisdom, particularly parents who want to plan now for future college expenses. When it comes to preparing for college expenses, parents travel a dicey, undefined path littered with complications and setbacks. Consequently, some veer off course. Others, too skittish to commit, avoid the journey altogether. What a pity.

The truth is, the hardest part about preparing for college expenses is getting started. But it doesn’t have to be. With the following steps, brought to you by the College Illinois! 529 Prepaid Tuition Program, families can get on the road to paying for college.

Step 1—Set a Goal: Knowing what they want and when they’ll need it prepares parents to project costs and estimate the time it will take to accumulate sufficient funds. Ask yourself, will my student attend a public university, community college or private school? Is my child talented? How likely is he or she to get an art, athletic, or academic scholarship? Decide how much and what kind of schooling you plan to purchase. Then use this tuition calculator to project costs and set a target.

Step 2—Make a Plan: So you know what you need. Congratulations! That’s half the battle. Your next challenge—making it happen by the time your child is ready for college—may be a bit trickier. No need to panic. The College Illinois! 529 Prepaid Tuition Program has a plan that will work for you. Mix and match our SmartChoice options to customize a plan tailor made for your family. Choose between three distinct tiers. Choice One lets you purchase up to two years of community college. With Choice Two, parents can buy one to nine semesters at any public university except the University of Illinois Urbana-Champaign (UIUC). Choice Three lets buyers purchase one to nine semesters at any public university including UIUC. Remember, prepaid tuition benefits are portable and can be applied throughout the country and beyond. Families that don’t need or can’t afford nine semesters at a four-year college may purchase just four or opt for a community college plan. Students who want to start with a two-year degree can buy four community college semesters and four state university semesters. Use our plan finder to customize a plan that fits your family’s educational needs.

Step 3--Act Quickly: Experts agree, when it comes to planning for future college expenses an early start is the best start. Flexible pricing options offered by the College Illinois! 529 Prepaid Tuition Program, reward early enrollment. Prices adjust the first day of each month, making now the best time to purchase a College Illinois! 529 Prepaid Tuition Program contract. Benefits can be applied at almost any college or university in the United States, and even at the international postsecondary institutions recognized by the U.S. Department of Education as eligible to receive federal financial aid. Enroll before the end of the month and save up to $500 on a prepaid tuition contract. Get peace of mind, knowing your student’s education is secure. So buckle up and welcome to the College Illinois! 529 Prepaid Tuition Program—your road to paying for college!

For more information:
Tonya Polk
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
529info@isac.org
(877) 877-3724

Top 5 Reasons to Prepay with the College Illinois! 529 Prepaid Tuition Program

noreply@blogger.com (College Illinois!) — Thu, 21 Jan 2010 18:56:00 +0000

Paying for college with the College Illinois!® 529 Prepaid Tuition Program should be a “no-brainer” for parents with young children. That’s because prepaying lets parents spread the cost over time and avoid tuition inflation by locking in a price today that won’t be subject to future increases.

When you think about it, there is very little difference between prepaying tuition and purchasing a new stove or refrigerator on layaway. Both options let you contract now to buy items you need but can’t readily afford to purchase.

However, while appliances break down or depreciate, prepaid tuition benefits keep pace with increases in tuition and fees equal to those found at in-state, public institutions. So parents and grandparents who participate in the program can relax knowing their investment will deliver the tuition benefits they purchased.

But don’t take our word for it. See for yourself. Read on to discover the Top 5 Reasons to prepay for college with the College Illinois! 529 Prepaid Tuition Program. Then visit www.529prepaidtuition.org to peruse the pricing schedule, download guidelines and enrollment materials or chat live with a College Illinois! 529 Prepaid Tuition Program representative.

Top 5 Reasons to Prepay with the College Illinois! 529 Prepaid Tuition Program

1. Security & Stability—The College Illinois! 529 Prepaid Tuition Program is a low-risk, safe alternative to savings and other investment plans that are subject to market fluctuations. Unlike other programs, prepaid tuition benefits don’t depend on the market for growth. Buyers sign a contract with the State of Illinois to purchase semesters at a community college or public university, delivering benefits, regardless of market fluctuations.

2. Tax Advantaged—Thanks to tweaks in Illinois law, contributions to your College Illinois! 529 Prepaid Tuition Program plan can be deducted from state income taxes. Families can deduct up to $10,000 per year ($20,000 for married couples filing jointly) from their taxable income. Plus benefits are permanently exempt from federal income taxes and are 100 percent exempt from state income taxes. “Earnings” grow tax free if utilized for a college education!

3. Portable Benefits—This program isn’t just for families that think their future college student will attend an Illinois school. Benefits can be applied at almost any college or university in the United States, and even at international postsecondary institutions recognized by the U.S. Department of Education as eligible to receive federal financial aid.

4. Confidence—Because your prepaid tuition purchase is a contract between you and the State of Illinois, you can be confident that the benefits you’ve purchased will be there when your child is ready for college. There’s no guesswork!

5. Choice— A College Illinois! 529 Prepaid Tuition Program contract lets you have it your way. Parents can custom tailor the plan to their needs: pick the number of semesters (from one to nine) and the type of school you want the child to attend. You can also choose from several flexible payment options. Whether you prefer a lump sum payment or need to make monthly installments, College Illinois! 529 Prepaid Tuition has a payment solution that will work for you.

With all these reasons plus the added benefit of locking in January pricing discounts, there’s no better time to take advantage of all the benefits the College Illinois! 529 Prepaid Tuition Program has to offer.
For more information:

For more information:
Tonya Polk
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
529info@isac.org
(877) 877-3724

College Illinois! 529 Prepaid Tuition Program Brings Peace of Mind in 2010

noreply@blogger.com (College Illinois!) — Thu, 14 Jan 2010 17:42:00 +0000

With the holiday chaos finally behind us and New Year’s excitement still in the air, now is the perfect time to ease slowly into our 2010 resolutions.

Who knows what the year has in store? Will the stimulus package jolt our economy into recovery? Which two teams will meet Super Bowl Sunday? Will John and Kate find new mates? We’ll have to stay tuned for answers to these and other pressing problems.

One thing that is certain and completely within your control is the safety of a prepaid tuition investment with the College Illinois! 529 Prepaid Tuition Program and the peace of mind you'll secure in knowing you've started saving for your child's education.

Administered by the Illinois Student Assistance Commission, the College Illinois! 529 Prepaid Tuition Program is a contract between the purchaser and the state of Illinois that ensures tuition and fee benefits for college, regardless of fluctuations in the market. When a child or grandchild is ready to go to college, he or she can choose to attend almost anywhere because benefits can be used at Illinois public universities and community colleges or applied at public and private institutions nationwide.

Like most New Year's resolutions, saving for a child's college education can be a daunting task that brings up many questions: How does this program work? Is prepaid tuition the right saving method for my family? Can we afford it?

For answers to these and many other questions, just ask us! To find out how the College Illinois! 529 Prepaid Tuition Program can help you realize your college funding goals, call us at 877-877-3724, email 529info@isac.org, or visit www.529prepaidtuition.org to download guidelines and enrollment materials or chat live with a College Illinois! 529 Prepaid Tuition representative. Representatives are available to answer general questions.

If you need one-on-one attention, come to ISAC’s College Illinois! 529 Prepaid Tuition Program Open House from 5 p.m. to 7:30 p.m. on Tuesday, January 19, at 1755 Lake Cook Road in Deerfield, Illinois. Parents are invited to ask questions, get general information, or meet one-on-one with a representative to learn how the College Illinois! 529 Prepaid Tuition Program can help avoid tuition inflation and achieve financial goals related to preparing for future college expenses.

Registration is encouraged, but walk-ins are welcome. Space is limited and appointments are filling quickly. To confirm your attendance or schedule a one-on-one appointment, email 529info@isac.org. Looking forward to seeing you there!

For more information:
Tonya Polk
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
529info@isac.org
(877) 877-3724

New Opportunities in the New Year

noreply@blogger.com (College Illinois!) — Thu, 07 Jan 2010 16:49:00 +0000

The start of a new year is always ripe with opportunity and promise—the opportunity to get a fresh start, the promise of something different. This spirit of new beginnings often prompts people to assert lofty goals about things they hope to accomplish in the coming months—getting fit, climbing Mount Everest, or finally penning that great American novel.

But this year the Illinois Student Assistance Commission is encouraging parents to focus their New Year’s resolutions on education planning whether they have pre-schoolers or high schoolers—the younger the child the better—according to Eric McKissack, chief executive officer of Channing Capital Management a Chicago investment company.

“Parents who invest over longer periods of time improve their risk tolerance and are more likely to reach their investment goals,” said McKissack who urges parents to consider 529 plans because they are tax deductible and grow tax-free.

That’s good advice for families with young children who can prepay tuition expenses over time but can’t absorb financial downturns that wipe out investments or savings. Unlike a college savings plan, the College Illinois! 529 Prepaid Tuition Program is the tax-advantaged way to protect your family from tuition inflation by allowing you to lock in a price now to cover future tuition and mandatory fees.

Families with older kids may be looking for a more conservative investment vehicle too, and the College Illinois! 529 Prepaid Tuition Program provides that security while helping avoid tuition inflation.

Got a different plan but seeking a more conservative place to grow it? The IRS allows you to roll your plan into a College Illinois! 529 Prepaid Tuition Program contract. This allows you to secure benefits and keep pace with tuition inflation.

Already a College Illinois! 529 Prepaid Tuition Program plan holder? The New Year can be a great opportunity to review your financial picture. Perhaps an upgrade would help you meet your financial goals.

We can help. To learn more about how the College Illinois! 529 Prepaid Tuition Program can help you prepare for future college expenses and accomplish this year’s resolution to ensure your son or daughter will have the money they need to go to college, come to our open house in Deerfield on January 19 . Call us at 877-877-3724 or email 529info@isac.org
for additional information.

Happy New Year!

Make Your New Year's Resolution to Plan for Your Child’s Education

noreply@blogger.com (College Illinois!) — Tue, 29 Dec 2009 21:27:00 +0000

Many parents don’t save enough – or at all – for their child’s college education. The thought of a heap of money sitting in a bank or investment account may not seem all that appealing when you think of what else you can do with it. But what if paying for tuition upfront meant that you could avoid tuition inflation and actually save money—it would seem more appealing then, wouldn’t it?

That’s exactly what the College Illinois! 529 Prepaid Tuition Program lets you do when you purchase a prepaid tuition plan—you can lock in the cost of tuition and mandatory fees at a rate set today. By investing now, you limit the future cost of college to a single, reliable number that will be substantially lower than the actual cost of tuition by the time your student goes off to college. Unlike 529 savings plans, your investment is not directly tied to the stock market so you don’t have to worry about the ups and downs of a fluctuating market.

Another benefit to buying prepaid tuition is that you can enjoy 100 percent tax-exempt earnings, a state income tax deduction up to $10,000 ($20,000 per couple filing jointly) and a federal gift-giving tax exemption up to $13,000.*

You have the flexibility to purchase anywhere from one to nine semesters of college and pay for it by choosing any of our affordable payment options. Your child can use his or her prepaid tuition benefits at nearly any college or university in the United States and even at some international institutions. See our FAQ for more details.

Plan for your child’s college tuition right now to ensure that their future education is not left up to chance. Our rates change monthly so the sooner you enroll, the more money you’ll save in the long run. We would love to help clarify how these great options might apply to your family’s situation, so feel free to contact us and set your new year’s resolutions off right!

*Please see Master Agreement and Disclosure Statement for more details. The College Illinois! 529 Prepaid Tuition Program cannot provide purchasers with any legal or tax advice. Purchaser should consult their own tax advisor concerning federal and state tax implications of purchasing a contract.

For more information, contact:
Yuri Zamostin
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
Illinois Student Assistance Commission
yzamostin@isac.org
(877) 877-3724

noreply@blogger.com (College Illinois!) — Thu, 24 Dec 2009 16:25:00 +0000

Decision Time for Recent Grads: Pay for Presents or Pay for Tuition?

It’s a joyous time of year but perhaps not for many recent college graduates who, according to a Los Angeles Times article, will have an important decision to make this month about whether they can afford to repay their student loans or must ask for additional deferment. Today’s graduates have a tough road ahead of them due to student loans and their mounting debt.

Nationwide, the average debt for graduating seniors with loans rose from $18,650 in 2004 to $23,200 in 2008, according to a recent report by The Project on Student Debt.

However, unemployment among college graduates ages of 20 to 24 is now the highest in record history at 10.6 percent, according to the Los Angeles Times. This leaves many students unable to pay their student loans.

Protect your future college student from this situation! Purchase prepaid tuition now. The College Illinois! 529 Prepaid Tuition Program lets you lock in the cost of tuition and mandatory fees at today’s rates. Investing now limits the future cost of college to a single, reliable number that will be substantially lower than the actual cost of tuition by the time your student goes off to college.

You can also take advantage of our new monthly pricing - the earlier you apply and make your initial payment, the lower your contract price. There are just a few days left before the end of the year to lock in our low December rates and make a payment that you can deduct from your 2009 taxes. You can benefit from 100 percent tax-exempt earnings, a state income tax deduction up to $10,000 ($20,000 per couple filing jointly) and a federal gift-giving tax exemption up to $13,000.* Enroll online now or visit our website for more information about our flexible and affordable plans.

*Please see Master Agreement and Disclosure Statement for more details. The College Illinois! 529 Prepaid Tuition Program cannot provide purchasers with any legal or tax advice. Purchaser should consult their own tax advisor concerning federal and state tax implications of purchasing a contract.

For more information, contact:
Yuri Zamostin
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
(877) 877-3724

noreply@blogger.com (College Illinois!) — Thu, 17 Dec 2009 16:27:00 +0000

The Gift Your Kids Will Hate Now, But Will Thank You for Later

To a child, a gift of education may seem just as undesirable as a pair of socks or other item of clothing, but to you—a parent—the gift of education is something that is not only valuable but also beneficial to your child for a lifetime.

Many financial experts agree that state-sponsored 529 plans are the best way to save for a college education, according to the American Association of Retired People (AARP). These plans, like the College Illinois! 529 Prepaid Tuition Program, feature tax-exempt earnings and give the owner of the account complete control over the plan and the beneficiary.

Funds are used to lock in tuition rates at state colleges and universities. Plan benefits can also be applied at almost any private or out-of-state institution anywhere in the United States and even at some international institutions. See our FAQ for more details.

A College Illinois! 529 Prepaid Tuition plan can be a perfect gift for your child or grandchild. Benefits can be used to pay for college tuition and mandatory fees. Unlike custodial accounts, these plans do not affect qualifications for financial aid. You can also choose to transfer the plan to another beneficiary if you choose.

With the College Illinois! 529 Prepaid Tuition Program, administered by the Illinois Student Assistance Commission (ISAC), your investment is secure because it is not directly tied to the stock market. With such great flexibility and security, it’s no wonder that financial experts agree that prepaid tuition is the way to save for college.

Although your kids might not thank you for it now, they definitely will later. This is one gift you shouldn’t wait to give. Take advantage of our low December rates and year-end tax advantages by enrolling online now.

Who Says You Can’t Buy Happiness?

noreply@blogger.com (College Illinois!) — Fri, 04 Dec 2009 17:42:00 +0000

We all want to know the secret to a happy, healthy life, right? Turns out the secret may be as simple as a college education. We’ve already discussed in a recent blog that a college degree will bring in substantially more income over a lifetime, but now we learn that a college education can influence happiness, health & wellness, trust and even your divorce rate—bet you didn’t know that!

A study by the National Bureau of Economic Research shows that people between the ages of 25-45 years who had 16 or more years of education are significantly happier, healthier, more trusting and less likely to get divorced.

Those statistics beg the question: who says you can’t buy happiness? If you want the best for your child and want to put them on the right path towards a life that is not only richer financially but also socially, a college education is one way to achieve that. You can start saving for your child’s college education by purchasing a College Illinois! 529 Prepaid Tuition Plan. The plan allows you to purchase semesters of college at today’s rates to be used towards tuition and mandatory fees when your child reaches college age. Your benefits can be used at almost any private or public college or university nationwide.

Three SmartChoice plans give you flexibility to meet your needs and our multiple payment options help you stay within your budget. Prices adjust every month, so take advantage of our low December rates and lock in the cost of tuition and fees now.

After all, you might as well buy that happiness at the best price!

For more information:

Tonya Polk
Manager of Sales & Marketing
College Illinois! 529 Prepaid Tuition Program
(877) 877-3724

Turkey, Trimmings and Prepaid College Tuition

noreply@blogger.com (College Illinois!) — Fri, 27 Nov 2009 18:26:00 +0000

As you gather with your family and friends this Thanksgiving and surf for gift ideas and deals online you might want to consider purchasing a great holiday gift that doesn’t come in a box such as a College Illinois! 529 Prepaid Tuition Plan.

In addition to a shiny new toy, the latest video game or trendy gadget, why not share a gift that will give the kids in your family a better future? The 529 Prepaid Tuition Plan allows you to do just that—with a gift that’s custom-made. You can customize your plan with as many or as few semesters, choose from three SmartChoice plans, and prepay the tuition gift with any of our flexible payment options.

With just days left to lock in the cost of tuition and mandatory fees at November’s rates, there will never be a better time to enroll than now to take advantage of these low prices. By purchasing now, you will also be able to take advantage of great tax incentives such as 100 percent federal and state tax-exempt earnings and a state income tax deduction up to $10,000 ($20,000 for couples filing jointly)*.

Black Friday and Cyber Monday don’t have to be reserved for traditional gifts, you can purchase prepaid tuition right from the comfort of your own home. Visit our website to enroll online or learn more about the program.

Have a safe and happy holiday from all of us at College Illinois!

*$20,000 deduction applies to married couples filing jointly. Neither ISAC nor College Illinois! can provide legal or tax advice. Please consult a professional tax advisor concerning federal and state tax implications or purchasing any contract.

For more information, please contact:
Yuri Zamostin
College Illinois! 529 Prepaid Manager of Sales & Marketing
(877) 877-3724

College Prices Continue to Rise—No Better Time to Enroll Than Now

noreply@blogger.com (College Illinois!) — Fri, 20 Nov 2009 20:32:00 +0000

While public colleges have traditionally been more affordable and accessible to students, it’s surprising to hear that the cost of tuition is rising at a faster rate at public four-year institutions than at private colleges, according to the College Board. This is mostly due to the fact that state funding and endowment values have declined but college costs continue to rise.

The average price of tuition and fees is $7,020 per year at four-year public colleges in the United States in 2009-10, a 6.5 percent increase compared to last year. Although grant aid also increased significantly last year, many students have had to borrow more money in order to attend college.

The gap is widening between available resources and the overall cost of attending college. Not only are families struggling to pay for college, but increased demand for aid is putting pressure on the nation’s financial aid budgets.

College Illinois! is working to ensure that access to a high-quality college education remains within reach for as many students and families as possible in today’s economy. With the 529 Prepaid Tuition Program, parents can lock in the cost of tuition and mandatory fees at today’s rates and stay one step ahead of the inevitable increases in tuition and inflation.

The program includes many affordable plan options that let you start early and prepay for college over time. When your child is ready to attend college, you’ll know that their education is paid for and that you saved money not just for college but on college!

Year-round enrollment is now open and you can take advantage of great tax benefits, affordable payment options and flexible plan choices for public, private or community college institutions.

Visit our website to find out how a 529 Prepaid Tuition Program works or contact us to find out how we can specifically help with your family’s needs!

For more information:

Tonya Polk

College Illinois! 529 Prepaid Manager of Sales & Marketing

(877) 877-3724

Enrollment Now Open! Consider: is that degree worth $1 million dollars?

noreply@blogger.com (College Illinois!) — Wed, 04 Nov 2009 19:31:00 +0000

A few years ago, it was reported in a study by Arizona State University that a four-year college degree returns $1 million more over a lifetime than a high school diploma. While this number has been criticized, no one knows the real dollar amount benefit of a college degree because it depends on a number of factors like the type of degree you choose, your field of work, how long it takes you to graduate and if you choose to get a graduate degree.

Let’s be realistic—a career in social work is obviously not going to have the same rate of return as a career in engineering.

What we do know for sure is that education does pay—in personal, economic and societal benefits. It’s a widely known fact that college graduates earn over 60 percent more than typical high school graduates and those with a graduate degree can earn two to three times as much. The personal benefits don’t end there—college graduates are more likely to enjoy health and pension benefits and are less likely to be unemployed during tough economic times. The United States Department of Labor reported that unemployment rates for September of this year were 10.8 percent for those with a high school degree, but less than half of that (4.9 percent) for those with a bachelor’s degree or higher.

The economy and society benefit too—an educated population means increased productivity, higher earnings and a decrease in dependency on social safety-net programs and demand on public budgets. There’s also a correlation between higher levels of education and civic participation, including volunteer work and voting, as well as a greater level of openness to the opinions of others, according to CollegeBoard.com.

If these benefits are not enough to convince you that financing a college education is a great investment for your child, then you might consider the notion of tuition inflation because college tuition increases by an average of 6.5 percent nationwide every year.

The College Illinois! 529 Prepaid Tuition Program is now open and now offers year-round, open enrollment in order to let you lock in the cost of college tuition and mandatory fees at a current rate, thereby avoiding future tuition inflation.

The economic events of last year have been a wake-up call for many parents and their children to focus on establishing a plan to pay for college, starting early and keeping that investment safe from the market’s fluctuations. The College Illinois! 529 Prepaid Tuition Program let’s you do all of that because

Your investment is secure and not tied to the stock market
You can enroll at anytime
You can choose from many affordable plan choices and payment options
And with our new monthly pricing schedule, the sooner you enroll, the more money you can save.
You also benefit from excellent tax advantages such as 100 percent federal and state tax-exempt earnings, a state income tax deduction of up to $20,000 and a federal gift-giving tax exemption of up to $65,000.

With the volatility in the economy, an investment in education still remains a sure bet. A college degree has the potential to give your child a better future as well as a consistent return of a higher salary. Is that return going to be $1 million dollars? It’s definitely possible!

So enroll today! With prices now adjusting on a monthly basis, our affordable payment options and plans ensure that the cost of education will never be lower than today - literally!

For more information including details on plan options and prices:

Contact Yuri Z.

1-877-877-3724

-or-

Visit our main page at

http://www.529prepaidtuition.org

Affordability = Fashionable

noreply@blogger.com (College Illinois!) — Thu, 16 Jul 2009 19:58:00 +0000

A Google search results in nearly 57,100,000 websites on the term "saving money."
We all know that spending is out. Saving is in. It’s become hip & trendy to save. Tips range from going vegetarian/meatless to swapping favors and buying in bulk to pooling your money or your kids in one basket. Haven’t taken your pets for pampering & pleasures? Hired a garden whisperer lately? How about the personal shopper to find you a…..Give me a break.

Think about it this way: what does it mean to save? What is saving?

Perhaps it means one of the following:

Saving = smart
Saving = sexy
Saving = trendy
Saving = love
Saving = sacrifice, and you do that for people you love, even if it’s for yourself
Saving = saving your self, your sanity, your soul
Saver = savor

Spread the good word: the best way to pay for college is to save over time. A pre-paid tuition plan is the safest, most secure way to pay for education. College Illinois! is a long-term investment that allows you the ability to ride out the market & free yourself from the ups & downs of bears vs. bulls. Are you a bulls fan?

You can pre-pay your cell phone, long distance, even your internet. So why not pre-pay your child’s college tuition? You pay today’s rates, stop inflation, and get the tax breaks—with a legally binding contract to protect you.

Of course, there are other ways to save for college… You can win the lottery, gain an inheritance from your great great uncle, work three different jobs seven days a week. Or, you can invest in the market. In the end, none of these options are guaranteed. The only way to secure your child or grandchild gets a college education is to do so the old-fashioned way: pay for it yourself. But pay for it debt-free!

Open enrollment is currently going on now for newborns under age 1, but only runs until August 1st so don’t delay.

You decide:

Roll the dice in the stock market & hope for the best.

-Or-

Slow & steady wins the race.

Choose wisely.

You don’t have to eat humble pie every day of your life, but having a slice once a month is good for you. Think about the value of a dollar today & what it could mean for the future. Then ask yourself…What are you hungry for? And what did you save today?

--Amy S.

How am I ever going to pay for college?

noreply@blogger.com (College Illinois!) — Mon, 06 Jul 2009 13:40:00 +0000

This is the million dollar question for most parents in Illinois during this time of economic turmoil. With the cost of college tuition increasing every year, this question seems to be one that is very difficult to answer. Most parents would say, “we’ll get financial aid,” “let’s borrow the money from our local bank,” “my child’s getting a scholarship” (I love that one), or the one answer you never want to say “we can’t afford for you to go to college.”

Well, I’m sure at least one of you reading this has said one of the above answers. And you’re still not sure how you are going to make ends meet.

College is just not about the tuition, it includes room and board, transportation, books (which are about the same cost as tuition), entertainment, new clothes, new shoes, etc. And all of these things are going up just as fast as tuition.

President Obama has a task force that is examining the cost of college. The first report states:

“Since the 1978-79 academic year, the inflation-adjusted value of the average published college tuition has shot up from $2,303 to $6,585 for public four-year colleges and from $9,903 to $25,143 for private four-year colleges. These increases represent annual real growth in the college tuition of more than 3% a year for both of these classes of institutions. In other words, over the span of three decades, the real, inflation-adjusted cost of tuition for private four-year colleges has more than doubled. Meanwhile, public four-year institutions, while still much cheaper than private colleges, have nearly tripled in “sticker” price over this period.”

Just knowing this makes my stomach turn when I think about how much tuition is going to go up this year (2009-10), but with the right strategies in place, you can save yourself some headaches (and stomach aches) if you start saving now.

One of the best ways to start saving is to invest in the College Illinois! 529 Prepaid Tuition Plan. The plan allows you to put money away at today’s cost for tuition and mandatory fees, and when the child reaches college age the plan steps in and pays 100% of the cost as long as they attend an Illinois Public University. That doesn’t mean you can’t use it at another institution—the plan will pay some money towards an out-of-state or private university.

Enrollment is currently open for children under the age of one (till August 1st), but in October we re-open for general enrollment.

Start doing your research now, ask those important questions, and when we re-open in October you’ll have the answer to the above question---“I’m paying for college with my College Illinois! plan”.

Tonya P.

Baby’s First Summer

noreply@blogger.com (College Illinois!) — Fri, 12 Jun 2009 21:09:00 +0000

Imagine everything that a baby absorbs: you show him a beach ball, play in the sand, take him for a ride in your arms in the pool, cover his head with that funny-looking hat while lathering his soft, sensitive skin with baby lotion and sun block that smells pure, sweet, it’s baby skin in summer.

Babies are so helpless, so dependent on us for everything. Food, clothing, shelter, a loving family—all the necessities in life. And more often, an education is going to be a necessity on that list. Babies won’t have the best start in life without an equal opportunity to get an education as their counterparts will have.

Baby’s first summer cannot be complete without mom & dad planning for his future.

No longer can you say “There’s plenty of time! I don’t need to start thinking about paying for college for at least 5 or 10 years!” The world has changed. The economy, stock market, unemployment rates, mortgage crisis, credit crunch, etc. have shown all of us that we don’t know what the future holds. What you do know is you have to protect yourself. You have to take action.

If you have a newborn infant under 1 year of age you still have time to enroll in College Illinois!. She’s not saying a word yet, not even “mama” or “dada”, certainly not “tuition bills.” You are in the best possible position to make an impact on her future. You have the benefit of time on your side. A College Illinois! 529 Pre-Paid Tuition Plan allows you to purchase tuition at today’s prices, protecting her and yourself from tuition inflation.

It’s a smart, secure way to know that you have college paid for; it’s peace of mind because your coverage will never change & is not dependent on the stock market.

Baby needs smart planning that can weather the storm in the future. Remove the doubt of uncertainty. Buy now, save big money in the future. It doesn’t matter if she will grow up to be an architect, a musician, a writer or a teacher. What matters is that she develops her skill set & she gets her education.

It’s a paradox: 18 years from now a college degree will be the minimum standard, yet paying for it seems like it’s hardly worth the price, whatever the price will be. Even so, all the experts-- including educators, sociologists, career counselors, and those who study trends in education and the job sector-- continue to reinforce what we already know in our hearts: getting an education will be a non-negotiable, critical, must-have in the future. You may be able to take a chance on some things in life but you can’t gamble on an education. You have to bank on it.

What do you think of when you think about infants? That wonderful baby smell? Or changing diapers throughout the day? How about her first laugh? Or her crying throughout the night? If you think about the hope, potential and promise a newborn baby gives to the world, then think about her walking down the aisle one day. Not the marriage aisle! The aisle to shake the Dean’s hand as she receives her diploma & begins the first day of the rest of her professional life.

Amy S.

Happy College Savings Day!

noreply@blogger.com (College Illinois!) — Fri, 29 May 2009 17:58:00 +0000

Here at the Illinois Student Assistance Commission (a.k.a. ISAC, the state agency that administers College Illinois!) we love celebrating every May 29th because we're lucky enough to operate under the mission statement of "making college accessible and affordable for all Illinois students." And if that isn't a reason to get up early in the morning, we don't know what is!

Now if the reason you get up early in the morning is because you're a new parent or grandparent, please seriously consider enrolling in College Illinois! before this current infant enrollment period closes on August 1st!

With tuition rates rising at 7 % to 8% annually nationwide, college education for your little one will never be more affordable than right now! And before you think you can't afford it, check out our new SmartChoice options through which you can get into the program for as little as $35 or $57 a month!

Consider that a child born today is projected to pay more than $162,000 at a four-year public university. Whew!

But you have the opportunity -- right now! -- to lock in this year's rate of college tuition with a legal, binding, state contract granting you the peace of mind of being free from fretting over savings accounts and stock tickers and ensuring that, come freshman year, the only worries you'll have are how to let your baby birds fly free!

Seems too good to be true, doesn't it? Well this College Savings Day we stand proud behind our College Illinois! 529 Prepaid College Tuition program and strongly encourage you to consider your options and make the right choice for your child's future education.

Take a moment to check us out. We're confident you'll find that College Illinois! truly is the smart, secure way to pay for college tuition!

Want to know more? Click here to find out more about College Savings Day!

Our blog has new family members!

noreply@blogger.com (College Illinois!) — Tue, 19 May 2009 19:38:00 +0000

Prepaid Perspectives has some company on the World Wide Web! We’re thrilled to announce that we now have a presence on many of the fastest growing social networking sites. You can find lots of fun and useful information about the program, upcoming events and great photos and video from events on: Facebook, Twitter, LinkedIn, Plurk, Tumblr, Flickr and MySpace.

By becoming a fan of, or following College Illinois! on any of these popular social networking sites, you’ll stay up to date and informed about all things 529 prepaid tuition contracts in our state and across the country. We hope you’ll send us messages and we look forward to getting to know you better! We welcome your suggestions, as the purpose of these sites is to make our program more accessible to you, the parents and grandparents of future college-bound kids!

If you need any help finding us on any of the sites, just drop us a comment here on the blog and we’ll be happy to assist.

Todd

A Beautiful Bloom

noreply@blogger.com (College Illinois!) — Wed, 13 May 2009 15:49:00 +0000

Spring has sprung, flowers are blooming, birds are singing. Spring! A time of new beginnings, re-birth, spring cleaning, out with the old & in with the new, a time for hope and change in new life not yet fully seen. A great chance to re-evaluate our priorities and think about changes to make in the spirit of renewal & optimism.

Just as a blooming plant or beautiful flower starts from its smallest form as a seed, it grows with increasing potential. The same is true for our loved ones, our children. They need nourishment & care to grow to their full potential. By starting a financial plan for them now, you are setting them up for future success:

Your child will go to college. Your child will thrive & prosper.

And you can make it happen! A 529 Pre-Paid Tuition Plan may be the best way to do that for your newborn infant.

An education is more than just about going to school. Gaining an education and utilizing it in school, in work, and throughout life is the goal. Imagine the limitless possibilities of what your newborn daughter or son may do 10, 20, 30 years from now. But it all starts from a seed! Plant the idea and feed it with TLC, nurture the soil so it will be fertile & open to new ideas. When you take time to plant the seeds now with a 529 Prepaid Tuition Plan you will be amazed at what emerges when they become young adults.

For the baby in your life who will go to college one day, consider doing something that offers hope & potential for their future. Right now is the perfect time to lock in the costs of college today for the baby who will get that degree years from now. You have the best choices, the lowest prices, the most options today. If it’s true you reap what you sow, then you have no time to waste. Start planning for their future college tuition today.

General Enrollment season has just closed, but we’re in full swing with College Illinois! 529 Pre-Paid Tuition enrollment for infants under age 1. Now is the time to look ahead to what’s possible. Seedlings need water, roses need pruning and hydrangeas need sunlight. So too do our young people. They need the nourishment that only a higher education can provide.

Time moves forward. It doesn’t stop, and it never slows down. When you nourish your children you can start planning for their college savings now-- and gain the peace of mind that only a 529 Pre-Paid Tuition Plan can provide.

Here’s to a beautiful spring!

-Amy

WHAT’S NEXT???

noreply@blogger.com (College Illinois!) — Thu, 07 May 2009 16:29:00 +0000

Now that general enrollment has closed a lot of you may be wondering “what’s next?”

Well, the first thing you should know is that enrollment is still open for newborns till August 1, 2009. So any parent that has a child less than the age of one year old still has an opportunity to get a College Illinois! contract. The pricing starts as low as $35 a month for a Community College Plan and $57 a month for a University Plan.

But, if you have already purchased a plan you should know that your first payment is not due till June 1, 2009. Once you have an account with us, you will receive a Welcome Letter, Participation and Payment Schedule and a printed copy of the Master Agreement and Disclosure Statement.

Depending on your payment schedule, you will either receive a payment invoice for lump sum payments, annual payments, or monthly payments – depending on which option you chose. Once again this money is not due till June 1, 2009. In early January, you will also receive an annual statement that shows all the accounts you own and the account totals.

For those of you that have children who are starting college this year, you should’ve received a “Using Your College Illinois! Benefits” book. This book will give you specific details on what you and the beneficiary need to know in order for College Illinois! to start paying for the beneficiary’s tuition and mandatory fees. If you have not received your book or have questions, please call our Customer Service at 877-877-3724.

Congratulations on your purchase of a College Illinois! contract – the smart, secure way to save for college.

Tonya P.

Why Here, Why Now?

noreply@blogger.com (College Illinois!) — Tue, 28 Apr 2009 14:51:00 +0000

Every time we meet with parents, community members, residents, and employees they all say the same thing, year after year: “If I had only started College Illinois! last year before the rates went up! If only!….” It’s the most common thing we hear on a regular basis.

People want to do the right thing and they care about their children’s education.

But procrastination can be a killer.

There are 2 days left in the enrollment season to take advantage of this year’s college costs. Once we close down the program and re-open in the fall, tuition will go up. Our rates will increase because we keep pace with Illinois tuition. But you don’t have to pay more. Here’s why timing is everything:

Why Here? College Illinois! is good at almost any school, in state or out of state, public or private. Once you’ve purchased semesters of college tuition, you own it! No one can take that away from you.

Why Now? Projections for Illinois tuition are expected to show significant increases. In Illinois, tuition has increased 8-10% historically over the last 10 years. College will be nearly DOUBLE what it costs 10 years from now! For example: 1 year of tuition at U of I Urbana-Champaign costs $12,116 now. Using actuarial assessments, calculating the future costs ten years from now, it will likely cost $25,916. Why would you pay that amount if you didn’t have to?

Why Not? You have nothing to lose. You have a Master Agreement which states your legal rights and protects your purchase. You are not tied to the rise & fall of the stock market. You keep up with inflation, pay today’s prices, and get some of the best tax breaks that are available in the nation.

For as little as $57 a month you can lock in your payment with College Illinois! at today’s tuition prices for the University Plan. For the Community College Plan it costs only $35 a month. You can always add on semesters of tuition in the future or change your plan at any time.

Your biggest regret may be doing nothing at all.

Prices increase every year. They have to- but you don’t have to pay those prices. Lock in your tuition today and know that you have college taken care of for the future.

Remember the Pre-Paid Difference.

Amy S.

529 Plans: What's the catch?

noreply@blogger.com (College Illinois!) — Wed, 18 Mar 2009 16:54:00 +0000

There’s Only 1 Question to Ask

“What’s the catch? There has to be a catch or a trick somehow. What’s your refund policy? What if my kid doesn’t want to go to school, or can’t get in? What’s the penalty? How can you pay prices now & they never go up for the next 15 years? I don’t believe it—you can’t get something for nothing…….”

I hear this from a lot of parents, and I get it. They want to know—how can you get something for nothing? It’s really a no-brainer. There is no catch. No surprise. No hidden warnings. The only question is Can you commit? Can you make the commitment to purchase for the future?

Unlike buying a pair of shoes or some nice jewelry, purchasing a College Illinois! contract is a commitment, a major purchase, a substantial obligation. It’s an investment that you may pay over several years time. But we are here to help you make sense of it, and figure out what’s the right plan for you.

How can we do this? And why are you allowed to pay today’s prices? The IRS allows you to contribute to a tax shelter when saving for college. In Illinois there are 2 types of 529s: Savings Plans or Pre-Paid Tuition Plans. College Illinois! is a 529 Pre-paid Tuition Plan- the only Pre-Paid Plan for the state of Illinois. Many other states have Pre-Paid Tuition Plans; but not all pre-paids are alike…read up on what our plan has to offer, you may be surprised. See why so many people are choosing this safer, more secure form of college savings.

It may not be right for everyone. I’ve said it before….for those moms & dads who are struggling to put a roof over their heads and food on the table, this may not be the plan for you. Clearly, putting aside an extra $50 or $100 a month may be out of the question. Or, if you are a full-time investor who monitors your earnings and watches your finances each & every hour of the day, you may not need this program.

However, if you are in the majority, where money’s tight, you know college is going to be a priority, but you don’t know how you can make that become a reality, this IS the best program for you. Every time we talk to parents they love what they hear- most sign up eventually or within the same enrollment period. They know a great thing when they see it. But you have to see it for yourself, and seeing is believing. Check out the section on our website that has comments from parents & students. Or, call us personally, and we can make sure you speak to a family that has used the contract and is completely comfortable. Until you ask you just don’t know. But remember that you get what you pay for. And with College Illinois! you know what you’re getting. There are no surprises. Where else can you get an investment with a legally binding contract that protects you, while keeping pace with historically high rates of tuition inflation, allowing you the tax breaks as well?

Nowhere else but College Illinois!. Call us at 877-877-3724

Amy S.

Tax Advantages & Implications of a College Illinois! Plan.

noreply@blogger.com (College Illinois!) — Wed, 11 Mar 2009 19:03:00 +0000

Some customers who enroll in 529 plans aren’t really sure of the tax implications of a prepaid tuition plan like College Illinois!. We often get questions about the tax advantages of the program and the effects of rolling over from one savings plan to a prepaid plan. Now before I explain the various implications, I must say that I am neither a tax preparer nor a financial planner, so I must recommend that you speak with your advisor to get more detailed information.

One of the first things you should know is that College Illinois! is 100% exempt from federal and Illinois state income tax. As long as plan benefits are used for qualified college expenses, the plan earnings are not subject to federal or state income tax. In addition, individuals subject to Illinois state income tax can deduct from their taxable income up to a maximum of $10,000 per year for contributions made toward the purchase of any College Illinois! prepaid tuition contract. Married couples filing jointly can deduct up to $20,000 per year. This state tax deduction reduces the individuals' adjusted gross income (AGI) by the amount contributed up to $10,000 (or $20,000 for those filing jointly).

But what if a grandparent, relative or a really nice friend wants to give money to the fund as a gift—can they do that? Of course…any individual may "gift" or contribute to a 529 plan up to a maximum of $65,000 in a single tax year without incurring gift taxes. After gifting that amount, the purchaser will be permitted to claim a $13,000 gift tax exclusion for each of five successive tax years.

What about rollovers?

Are there tax implications on that as well? In these tough economic times, several purchasers are looking to “roll” out of their savings plan and into something that is a lot more secure and not based on the performance of the stock market but still offers the same great tax advantages. You may roll over funds from another 529 qualified tuition program, Coverdell Education savings account or certain qualified US savings bonds to College Illinois! without negative tax consequences. The College Illinois! account must be established and you as the account owner must request the transfer of funds from the other institution. Our Rollover Reporting Form must then be completed and sent to College Illinois! along with documentation from the transferring institution that shows the basis versus earnings portion of the rollover or the entire rollover will be treated as earnings. In order to retain the tax-free treatment of the rollover, all withdrawals must be transferred to College Illinois! within 60 days of the initial withdrawal. You may roll over funds from a savings to a prepaid plan for the same beneficiary once every 12 months without federal tax consequences. You may rollover funds at any time without tax consequences if you change the beneficiary to a member of the family , as defined by the IRS, to include virtually any relative of the previous beneficiary.

For more information on the tax implications of a 529 plan, don’t forget to call your tax advisor or you can call the IRS at their toll-free number 1-800-829-1040 or go to their website www.irs.ustreas.gov. Publication 970 - "Tax Benefits for Higher Education" addresses a variety of education tax benefits and can be downloaded from the IRS web site.