Wait: College Illinois! Program Can Help Families Stop Tuition Inflation
April 5, 2007
Belvidere, IL….Illinois families worried about escalating college costs that could threaten their children’s educational futures can fight those increasing costs by taking advantage of the state’s 529 prepaid tuition program, College Illinois!. The program’s ninth enrollment period is currently underway and continues through April 24, 2007.
To protect themselves from tuition inflation, families can lock in a College Illinois! price now to cover future college tuition and fees. Similar to an insurance policy, families who purchase a plan are ensured tuition and fee benefits no matter how high those costs go.
“College Illinois! helps families plan for the educational futures of their children and relieves some of the stress associated with struggling to pay for college tuition in the face of ever-rising fees and expenses,” Wait said.
College Illinois! plan earnings are 100 percent exempt from state and federal income taxes. Purchasers also enjoy federal gift and estate tax benefits. Plus, Illinois taxpayers are allowed to deduct College Illinois! contributions (up to $10,000 per year for individuals; $20,000 for married couples) from their state taxable income.
“The College Illinois! program gives parents and grandparents of future college students a piece of mind and the chance to make a tax free investment in our greatest resource – our children,” Wait said.
Tuition and fees at Illinois public universities have increased at an average of 8 percent per year over the last 20 years. In the past 8 years alone, they have doubled.
“Projections indicate college costs will continue to rise significantly in the future,” said Randy Erford, director of College Illinois!. “Families who enroll a child in the program now will be protected from any future tuition increases during the years leading up to their child’s enrollment in college. Families whose students have used or are using College Illinois! benefits have saved thousands of dollars by prepaying tuition.”
Participants in College Illinois! can purchase from one semester at a community college to nine semesters at a university. Benefits keep pace with the increases in tuition and fees equal to those found at in-state, public institutions. Various payment options are available, including monthly and annual installments. 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.
Since the program’s inception in 1998, an estimated 27,000 Illinois families have purchased more than 53,000 prepaid tuition contracts with a value of more than $1 billion. As a 529 plan, administered and backed by the State of Illinois, it provides significant state and federal tax advantages for program participants. The program’s Trust Fund is managed by professional money managers, subject to oversight by the program’s Investment Advisory Panel and the Illinois Student Assistance Commission.
For more information about College Illinois! or to enroll in the program, residents may visit www.collegeillinois.com or call toll-free (877) 877-3724.