(The Center Square) – Changes are coming to Illinois’ college savings program.
Illinois State Treasurer Michael Frerichs has announced the Bright Start 529 College Savings Program will soon pay lower fees, gain access to low-cost investments, and manage their accounts on a new phone app.
Frerichs said the program has come a long way from when he first took office a decade ago.
“We overhauled the Illinois 529 program from top to bottom,” said Frerichs. “We lowered fees, saving Illinois families over $100 million, we revamped the investment lineup, and we brought in hundreds of thousands of new families into the plan.”
Frerichs said Bright Start is among the lowest-cost 529 savings plans in the country, and to help families keep more of their money to pay for rising college costs, total average asset weighted fees will be reduced by 13 percent.
A new Bright Start 529 mobile app will allow account owners to manage their account, check balances, and open additional accounts for new beneficiaries on their phones. The account opening process will be quicker, and it will be easier and faster to send money directly to colleges.
The transition will occur from 3 p.m. Wednesday, September 25 through Sunday, September 29. During that time, no withdrawals, contributions, or account changes will be processed. Account access and the ability to make transactions will resume at 7 a.m. Monday, September 30.
The tuition deadline for students at the University of Illinois and Northern Illinois University is Saturday, September 28. Frerichs said the University of Illinois and Northern Illinois University will waive any late fees and tuition paid with Bright Start accounts during the transition period.
“I am a firm believer in continuous improvement, especially for a program as crucial to Illinois families as college savings,” said Frerichs.
In April 2022, taxpayers covered a one-time $230 million payment for the unfunded liability in the now defunct “College Illinois!” program that ended enrollment in 2017.
