Every state now has at least one education savings plan that allows families to set aside funds for future college costs.
These education savings plans are usually categorized as either pre-paid tuition plans or savings plans, although some have elements of both. They’re also referred to as Section 529 plans, because they may provide special tax benefits under Section 529 of the Internal Revenue Code.
The State of Illinois offers the College Illinois Prepaid Tuition Plan and the Bright Start College Savings Plan. The College Savings Plan Network allows you to obtain information on the plans available in other states.
The value of such plans should be included as “other investments” on the FAFSA form. For more information, visit the IRS website.
The disbursement of College Illinois funds is handled by the University Bursar. The beneficiary of the College Illinois plan should contact College Illinois directly for information regarding reimbursement of tuition-restricted scholarships or tuition waivers. To initiate this process, click here.