Participants in
College
Illinois! can purchase from one semester at a
community college, to nine semesters at a university. The benefits reflect
increases in tuition and fees equal to those found at in-state, public
institutions. Various payment options are available, including monthly and
annual installments
To benefit from
this year’s rates, Rutherford recommends that participants take advantage
of the program by March 31st, when the program’s seventh annual
enrollment period comes to a close.
As a result of
legislation passed last spring, new and current participants will have an
opportunity to benefit from a tax deduction that allows
Illinois taxpayers to deduct College Illinois! contributions from their taxable income. The
program begins in tax year 2005 for returns filed in 2006, and deductions can
reach up to $10,000 per year for individuals, and $20,000 per year for married
couples.
Additionally, plan earnings are 100 percent exempt from
state and federal income taxes, and purchasers also enjoy federal gift and
estate tax benefits.
“There are quite
a few advantages to participating in College Illinois!,” said Rutherford. “The program was developed to allow
Illinois families to avoid paying inflated tuition
rates ten years down the road, which can save participants thousands of dollars
in higher education costs. The new tax deduction simply enhances a great
opportunity for families to prepare for college
costs.”
Senator
Rutherford explained that College
Illinois! is a secure college funding option because
program benefits do not vary with stock market performance, and families who
enter into the program have a contract with the state that ensures future
payment of college tuition and fees.
When a
beneficiary is ready to attend school, he or she can choose to attend college
anywhere, because benefits can be used not only at
Illinois public universities and community colleges,
but at public and private institutions nationwide, as
well.
Rutherford added, “College Illinois! is an insurance policy for your
child’s future. The coverage guarantees that money will be there when your child
is ready to go to school.”
The program application and fee must be submitted by the program’s
enrollment deadline, March 31,
2005, but new enrollees are not required to make any contract
payments until June 1,
2005.
For more information about College
Illinois!, or to enroll in the program, visit
www.collegeillinois.com or call toll-free at (877)
877-3724.