IL SR1840

Designates May 29, 2016 as 529 College Savings Day in Illinois to raise awareness about tax-advantaged college savings and prepaid tuition plans.

Recognizes that 529 plans offer tax-deferred growth, state and federal tax deductions, and tax-free withdrawals for qualified higher education expenses including tuition, fees, books, computers, and room and board.

Notes that Illinois has over 400,000 accounts with more than $7 billion saved through Bright Start and Bright Directions plans, with over $400 million withdrawn annually for education expenses.

Highlights that College Illinois! Prepaid Tuition Program has helped more than 30,000 students attend college using over $725 million in benefits, with over 10,000 students using benefits in the 2015-16 school year alone.

Acknowledges rising tuition costs (increasing over four times the rate of inflation in the past 15 years) and the growing student loan debt burden ($1.2 trillion nationally with 40 million borrowers averaging $29,000 each) that 529 plans help families avoid.