By: Ashmar Mandou
Parents across Illinois will now have a seemingly easier way to cover college costs. College Illinois! 529 Prepaid Tuition Plan, a program that offers parents the option to lock in college cost while avoiding tuition inflation, has reopened this month.
“This is definitely a great opportunity for parents to take advantage or at least start to think about how they want to pay for their child’s education,” said Miguel Del Valle, member of the Illinois Student Assistance Commission.
What College Illinois! 529 Prepaid Tuition Plan does is enable parents to select among several monthly payment options that best suits their financial needs and use it towards their child’s choice of college. When parents are ready to begin saving for their child’s postsecondary education, they can visit www.529prepaidtuition.org and review which contract fits them.
The program is intended to pull parents and students away from student loan debt by allowing them to ‘prepay’ for college, whether it be towards public and private colleges throughout the country. “The cost of tuition keeps growing,” said Del Valle. “It’s becoming more difficult to cover the costs of college. Today, about 62 percent, which is the number I have, of college students have loans of an average balance of almost $24,000.”
Since its inception in 1997, College Illinois! has helped thousands of families across the state pay for postsecondary institutions. What makes this program so unique, according to Del Valle, is that this type of college savings program is tax deductible and grows tax-free. Based on personal experience, Del Valle, who used College Illinois! to help pay for daughter’s education, describes the program as an investment in a child’s future.
“This program offers clear options for parents,” said Del Valle. “I tell parents to think of it as if you were making monthly payments towards your home or car. You are making monthly payments to ensure your child is able to receive the best possible education.” A child born today, according to Del Valle and College Illinois!, is likely to acquire college costs of $180,000 at a four-year public university. “The sooner parents begin saving, the easier it gets,” said Del Valle.
College Illinois! contracts will be offered at 2011 rates until December 31, 2012. The enrollment period opening will run through April 30th, 2013. For additional information College Illinois!, visit www.529prepaidtuition.org or call 877-877-3724.
