January 27, 2021 – A record-shattering $15 billion is invested in the state’s two most popular college savings programs, Bright Start and Bright Directions, Illinois State Treasurer Michael Frerichs said.
The balance was $7 billion when Frerichs was first elected in 2015. Changes Frerichs championed, especially the reduction of investment fees more than doubled the balance and saved families $100 million.
“We firmly believe that we must help people help themselves. Making it easier to save for college is a critical part of that mission,” Frerichs said. “We work every day to convince families that they have the ability to save for the future, no matter the financial pressures they face today.”
Bright Start is a college savings plan an individual can open without assistance. Bright Directions is a college savings plan an individual can open through a financial advisor. Both are 529 tax-advantaged plans, meaning the investment grows tax-free when used for qualified expenses, such as tuition, housing, or books. Funds saved in Bright Start or Bright Directions can be used at thousands of colleges, universities, trade, and technical schools across the country and abroad.
Morningstar, an independent investment and research firm, consistently rates each plan among the best in the country since Frerichs orchestrated improvements to the plans’ structure, investment lineup, and price. Frerichs also negotiated a 50 percent cut in management fees and a 47 percent cut in investment fees. Together, there are 733,000 accounts worth $15 billion. Bright Start has 360,000 accounts worth $8.4 billion. Bright Directions has 373,000 accounts worth $6.6 billion. Since 2015, families have used these accounts to pay for $4.7 billion in college expenses.
For more information, or to open an account, visit their website and click on the college savings button. There is no minimum amount to open an account.
