By Andy Dahn
BLOOMINGTON – As costs of college tuition rise across the country, so does the need to have a proper savings plan in place.
Illinois is helping families create plans for as little as $25 through the 529 College Savings Plan.
“Public education has been increasingly out of reach for middle class, working class families,” said State Treasurer Michael Frerichs. “And it’s clear that we need to do something about that. That’s why I’m excited that we can help families save for their kids college education with this program. If they make good decisions early and plan, their kids can have more opportunities.”
Families are able to set up the accounts by choosing investment options, using advisors for guidance, and can also choose from a variety of age-based plans.The more students the plan can reach and motivate, Frerichs said, the better.
“We think it’s really important to get as many kids college savings accounts as possible,” Frerichs said. “We have to make sure they know they have them, too. That sets high expectations and then they strive to be the best of their ability.”
Seven of ten Illinois students graduate college in debt, a number that Frerichs said the 529 Savings Plans looks to shrink.
“Graduation is a time when young people are full of potential,” said Frerichs. “They’ve got energy, excitement and passion. They should be able to pursue their dreams without a crushing debt hanging over their heads.”
You can learn more about these accounts and how to open one at illinois.treasurer.gov.
Andy Dahn can be reached at [email protected].
