| COLLEGE
ILLINOIS! LAUNCHES SEVENTH ANNUAL ENROLLMENT
PERIOD; HELPS ILLINOIS FAMILIES REDUCE FUTURE
COST OF COLLEGE
October 19, 2004
Families Electing to Pay for College Through
Prepaid Tuition Program Can Look Forward to Taking
New State Tax Deduction
SPRINGFIELD, Ill.— On Oct. 27, Illinois
families can begin protecting their children's
future college tuition against inflation when
the state’s only 529 prepaid tuition program,
College Illinois!, begins its seventh annual
enrollment period. College Illinois! helps
parents and grandparents reduce college costs
by allowing them to lock in a price now to cover
future college tuition and fees.
Families who enroll in the program during this
enrollment period will be the first to have an
opportunity to benefit from a new state tax deduction
that will allow Illinois taxpayers to deduct College
Illinois! contributions (up to $10,000 per
year for individuals; $20,000 for married couples)
from their taxable income. New contract purchasers
and current contract holders making contributions
via an installment plan can begin taking the deduction
on contributions made to the program in 2005 and
each tax year beyond.
There are other tax advantages to participating
in the College Illinois! program. Plan
earnings are 100 percent exempt from state and
federal income taxes. Purchasers also enjoy federal
gift and estate tax benefits.
"Each year, we are excited to open the enrollment
period to Illinois families who are looking for
a secure way to prepare for the future cost of
college," said Randy Erford, director of
College Illinois!. "Parents who enrolled
just last year have already seen the savings benefit
of purchasing a College Illinois! contract.
The greatest benefit of this program, however,
is the peace of mind that comes with knowing the
money will be there when their child is ready
to attend college."
Administered by the Illinois Student Assistance
Commission, College Illinois! is a secure
college funding option because benefits do not
fluctuate with the stock market. Similar to an
insurance policy, College Illinois! is
a contract between the purchaser and the state
of Illinois that ensures tuition and fee benefits
for college. When a beneficiary is ready to go
to school, he or she can choose to attend college
anywhere because benefits can be used not only
at Illinois public universities and community
colleges, but at public and private institutions
nationwide as well.
Families interested in enrolling in College
Illinois! can find information about this
year's plans and pricing options at collegeillinois.com.
Online registration is also available at the site
and takes less than 10 minutes to complete.
College Illinois! benefits keep pace with
the increases in tuition and fees equal to those
found at in-state, public institutions. Participants
can purchase from one semester at a community
college to nine semesters at a public university.
Various payment options are available, including
monthly and annual installments.
Since the program's inception in 1998, an estimated
23,000 Illinois families have committed over $700
million toward the purchase of more than 42,000
prepaid tuition contracts. College Illinois!
is secured by the state of Illinois. The program's
Trust Fund is managed by professional money managers,
subject to oversight by the program's Investment
Advisory Panel and the Commission.
College Illinois! is open for enrollment
through March 31, 2005. For more information about
College Illinois!, or to enroll in the
program, visit collegeillinois.com
or call (877) 877-3724.
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