2008 Summer Games

A recent Wall Street Journal article tested readers saving for college knowledge. As Illinois' only 529 prepaid tuition plan, we thought we would ask you a few questions about education savings right here in Illinois.

Test your knowledge:

1) True or false: College Illinois! benefits can be used at any college across the entire country.

ANSWER: True. A common myth about College Illinois! is that the state program's benefits can only be used right here in Illinois. Unfortunately, some parents, not wanting to limit their children's college choice options, rule out the program as a savings vehicle because they are not aware that College Illinois! benefits can be used virtually anywhere.

2) What if a child enrolled in College Illinois! decides not to attend college. What happens to the money put into the plan - do you lose it?

ANSWER: Of course not! The benefits can be transferred to another family member or a refund can be paid to the purchaser based on the average mean-weighted tuition and fees at the time.

3) It makes sense to start planning for college costs early. Is it too early though to begin saving for a newborn?

ANSWER: It can never be too early to begin saving with a College Illinois! plan. In fact, the earlier parents start a plan, the greater the financial benefit when it is time for the child to attend college. To help parents of infants get started, we are allowing them to lock in last year's College Illinois! costs until Aug. 1.

Winter Notes

Just like the holiday season, our program is in full swing! Our last blog entry mentioned Rex and Tony’s 10-Stop Tour, and we now have photos posted from their stops to date. You can check out all of the fun they’ve been having around the state by taking a look at their Web page here. Rex and Tony will return to Chicago on December 15 and look forward to meeting lots of new friends!

We would also like to remind everyone of the tax benefits that purchasing a contract brings at this time of the year. College Illinois! plan earnings are always 100% exempt from state and federal taxes. Of particular note as the end of the year approaches, this is a reminder that new contracts purchased or contributions made to an existing plan before December 31 can be claimed on your 2007 state tax returns. Illinois taxpayers can deduct up to $10,000 per individual or $20,000 for married couples filing jointly. Finally, should you purchase a plan as a holiday gift for your child or grandchild, there is a gift-giving tax exemption up to $60,000 per person.

As you can see, there are plenty of reasons to get involved with our program before the calendar switches to 2008.