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 “We purchased College Illinois! for both of our children when they
were very young. Our daughter and son have graduated from Eastern
Illinois University and we can honestly say that both kids will have
college degrees and are absolutely debt-free!” said Jerry Parks of
Decatur. “This program was extremely easy to use and gives children
the ability to pursue their dreams while keeping them and their
parents off ‘the poor farm.’ I highly recommend College Illinois!
for families that have the desire to see their little ones pursue
college degrees.”
Unlike a college savings plan, where the funds you have available to
pay for the future cost of college will depend on how much you have
saved and how well your investments have performed, College
Illinois! offers a unique, tax-advantaged opportunity to buy
something tangible now — semesters of college. The program allows
you to lock in the cost of college when a child is still young so no
matter how high tuition rates climb when your student is ready to
attend college, you’ll know tuition is covered for the schools in
your plan. Plus, the value of College Illinois! benefits can be used
at most private and out-of-state colleges as well.
College Illinois! makes it easy for relatives and friends to
purchase a plan for a child or contribute to an existing College
Illinois! Prepaid Tuition plan, and College Illinois! is a
particularly attractive gift-giving option for grandparents.
According to a 2012 AARP survey, of the 96 percent of grandparents
who spend money on their grandchildren, 53 percent are assisting
with educational costs.
In addition to helping limit future student loan debt for the
beneficiary, as a qualified 529 plan, College Illinois! offers
significant tax benefits for the purchaser:
Illinois residents get a state tax deduction for contributions to
the plan — up to $10,000 a year for individuals and $20,000 for
couples filing jointly.
On the federal and state level, earnings on contributions are
tax-exempt as long as they are used to pay qualified educational
expenses.
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Also, with certain limitations, there is a federal gift-giving exemption, making
the program a great option for grandparents and other friends and family who
would like to support a student’s future college education.
Gifting by purchasing a new College Illinois! plan can be done online, by mail
or on the phone. To review plan and cost options, or to purchase a plan, visit
collegeillinois.org. Or if you’d like to contribute to an existing College
Illinois! plan, follow our simple instructions and download a customizable gift
certificate.
Since its inception, the program has helped more than 30,000 students pay for
college and has paid out more than $800 million in plan benefits. Give the gift
of education to your loved one with College Illinois! — purchase a plan now
before prices increase on most plans beginning January 18, 2017.
About College Illinois!
Since its inception in 1998, College Illinois! has been focused on providing an
affordable option to help make college a reality for Illinois families.
Administered by the Illinois Student Assistance Commission, the state’s 529
prepaid tuition program offers a unique set of benefits, including tuition
inflation protection, flexibility, and significant tax benefits. Program assets,
which are held in the Illinois Prepaid Tuition Trust Fund and kept separate from
other state public money or funds, are professionally managed by an experienced
team led by a Chief Investment Officer and established third party asset
managers. More information on plan options and benefits, as well as a complete
description of terms and conditions of, and risks associated with the purchase
of a contract, is available at
http://www.college illinois.org.
The College Illinois! Prepaid Tuition Program cannot provide purchasers
with legal or tax advice. Individual tax situations vary greatly. Purchasers
should consult their tax advisor concerning federal and state tax implications
of purchasing a contract.
[Lynne Baker, ISAC]
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