Illinois Reduces Fees For 529 College Savings Plan

Oct 7, 2015

The state of Illinois is reducing fees on its Bright Directions 529 college savings plan. It’s meant to help families put more of their investment toward rising tuition costs. 

Credit Bright Directions

According to the state treasurer's office, the change eliminates a setup fee and quarterly maintenance fee, and cuts management fees by almost half. Officials say more than 100,000 accounts will benefit from the new terms, saving investors nearly $3.6 million annually.

Illinois Treasurer Michael Frerichs says everything must be done to make higher education affordable for families. He says that’s because a college education opens doors that otherwise would remain locked.

A 529 plan allows families to save for college with an investment free from federal taxes. Those programs are administered on a state-by-state basis, with a variety of investment strategies.