Starting this year, any child born or adopted will get 50 dollars put into their account.
The state set aside $2.5 million to initiate two college savings programs, ‘Bright Start’ and ‘Bright Directions.’
The program’s official name is 529 — like a 401K but for educational expenses.
The money grows tax-free and then, in turn, can be used for tuition, books, room, boarding, and other costs.
A University of Kansas study shows that students are much more likely to attend college if they know even a slim amount is saved up for it.
The Illinois State Treasurer Michael Frerichs says he wants his kids to pursue their educational careers without being crushed by debt.
“It’s a downpayment for the future of Illinois children living up to their greatest potential,” former state senator Cristina Pacione-Zayas said.
She said it is a game changer for working families who hold their greatest hopes for their children for post-secondary education.
For more information: Illinois First Steps – Bright Start
