 Not to worry. Illinois parents and grandparents can sign a College
Illinois 529 Prepaid Tuition Program contract today for much less,
negating the effect of tuition inflation on their pocketbooks.
Unlike a college savings plan, the 529 prepaid plan is a
tax-advantaged way to protect families from tuition inflation by
allowing purchasers to lock in a price now to cover future tuition
and fees and apply benefits at colleges nationwide.
"By locking in prices for tuition and fees today, parents are
able to better plan for a fixed cost to attend college," said Andrew
Davis, executive director of the Illinois Student Assistance
Commission. "And with the multiple pricing options and a variety of
payment plans, it's easy to find a plan that fits the needs of your
family."
New Year's resolution:
Now is the best time to purchase a contract because pricing
discounts make buying early more affordable. New pricing with
monthly discounts allows purchasers who buy earlier to lock in the
lowest prices on future college tuition and apply benefits almost
anywhere in the United States and abroad. Prices adjust on the first
day of each new month, every month, so it pays to purchase sooner
rather than later.
"If you want to make sure a college career is in your child's
future, you should seriously consider making a New Year's resolution
to embark on a plan to pay for college," Davis said. "The hardest
part of paying for college is actually starting. The earlier you
begin, the better off you are."
Experts agree that prepaid tuition is a smart investment when
parents start early and save over time. Eric McKissack, chief
executive officer of Channing Capital Management in Chicago, said:
"The key to investing in education is to start early and use
tax-advantaged vehicles like 529 plans that are tax-deductible and
grow tax-free. Parents who invest over longer periods of time
improve their risk tolerance and are more likely to reach their
investment goals."
A College Illinois 529 contract between the purchaser and the
state of Illinois ensures tuition and fee benefits for college,
regardless of fluctuations in the market. 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.
Prepaid tuition benefits keep pace with the increases in tuition
and fees equal to those found at in-state, public institutions.
Parents and grandparents can purchase as little as one semester at a
community college and up to nine semesters at a public university.
Various payment options are available, including monthly and annual
installments.
Now is the time for parents and grandparents to purchase this
secure option for their child's educational future at the lowest
prices. Visit www.529prepaidtuition.org or call 877-877-3724
toll-free for program information, monthly pricing discounts and
enrollment guidelines.
Administered by the Illinois Student Assistance Commission, the
College Illinois 529 Prepaid Tuition Program is a secure college
funding option because benefits do not fluctuate with the stock
market. Since the program's inception in 1998, more than 66,000
prepaid tuition contracts with a value of more than $1.6 billion
have been purchased. ISAC's commissioners are responsible for the
overall management of the program and its investments, including
hiring a qualified slate of investment managers and other
professionals.
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More about the College Illinois 529 Prepaid Tuition Program pricing
and plans
A tiered pricing system called SmartChoice, introduced in 2008,
makes 529 plans even more affordable than ever before. SmartChoice
pricing provides three distinct price and benefit levels --
community college, university and university-plus -- with different
payment options. The plans are completely flexible and let the
purchaser choose a pricing option that best matches their financial
needs and realities. Combination plans including four semesters at a
community college and four semesters at a university level are also
available. Various payment options include monthly and annual
installments and multiple down payment levels. In addition, program
beneficiaries can choose to attend college anywhere because benefits
can be used outside the state at public and private institutions
nationwide.
Upon purchasing a contract, Illinois taxpayers can annually
deduct up to $10,000 per individual or $20,000 for married couples
filing jointly, and all plan earnings are exempt from state and
federal taxes. Neither ISAC nor the College Illinois plan can
provide legal or tax advice. Please consult a professional tax
adviser concerning federal and state tax implications before
purchasing a contract.
To enroll in the College Illinois 529 Prepaid Tuition Program,
visit
www.529prepaidtuition.org or call 877-877-3724 for program
information, materials and enrollment guidelines.
About the Illinois Student Assistance Commission
The Illinois Student Assistance Commission provides students of
all ages and backgrounds with the resources and support to obtain
financial aid for higher education. A state agency, ISAC has paved
the path to postsecondary education with innovative programs for
more than 50 years. Last year alone, ISAC continued its mission to
make college accessible and affordable for Illinois students by
issuing over 186,000 grants and scholarships totaling nearly $431
million.
The commission provides educational funding with student loans,
as a loan guarantor and via numerous public programs, such as the
Monetary Award Program, the Illinois Veteran Grant and the College
Illinois 529 Prepaid Tuition Program. Students and families have
free access to a wealth of financial aid and college planning
information at ISAC's family of Web sites available at
www.knowhow2goillinois.org and
www.529prepaidtuition.org.
[Text from Illinois Student
Assistance Commission file received from
the
Illinois Office of
Communication and Information]
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