What are 529
plans?
These state-sponsored plans help your family fund future
college costs with tax benefits granted by Section 529
of the IRS Code. There are generally two types of 529s:
prepaid tuition plans and college savings plans. Both
provide unique tax benefits.
The College Savings Plans Network
is the national organization of all 529 plans and is
an additional resource for information.
How do I know my plan is secure?
Your plan is a state-run and state-backed program administered
by the Illinois
Student Assistance Commission (the state agency
that has administered most of the key government financial
aid programs and services in Illinois for nearly 50
years). We're your secure choice.
Am I limited to an Illinois college?
No. You can use College Illinois! almost anywhere.
We pay full in-state or in-district undergraduate tuition
and mandatory fees at any Illinois public university
or community college. Plus, your benefits can be used
toward tuition and fees at most Illinois private colleges,
and even at colleges and universities throughout the
country.
What does College Illinois!
pay for?
We pay for tuition and any mandatory enrollment fees.
Room and board, books, transportation, computers, optional
fees and fees for specific courses are not covered.
For students electing to attend a private or out-of-state
college, College Illinois! benefits are
equal to the mean-weighted average of the tuition and
fees charged by Illinois public universities or community
colleges at the time of the beneficiary's enrollment.
What are my payment options?
You can choose to pay a lump sum or start an installment
plan, with or without a down payment. We're flexible.
Purchase from one semester's coverage at a community
college to nine semester's coverage at a public university.
Or, purchase a combination of both public university
and community college benefits.
What if the Beneficiary doesn't
use it?
You can always request a refund. Depending on the reason
for your request, you'll receive the current contract
value (scholarship, death, etc.) or your payments plus
interest (non-attendance, etc.) as long as you've owned
your contract for at least three years. You can even
change plans or transfer benefits to another family
member.
What are my tax advantages?
Under current law, plan earnings are 100 percent exempt
from state and federal taxes. College Illinois!
also enjoys federal gift and estate tax benefits.
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).
* The limit on the state tax deduction applies to combined contributions to College Illinois!, the Bright Start Savings Program, and the Bright Directions Savings Program.
Am I eligible?
We only have one requirement - the purchaser or the
beneficiary must have resided in Illinois for at least
one year immediately prior to the purchase of a
College Illinois! plan. For infants under age one,
the parent or guardian must meet this residency requirement.
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