10 Things Every Illinois Family Should Know About College Savings

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There are 10 things about college and saving for college that every Illinois family needs to know. This infographic design is a great visual explainer of how college savings works (it’s easier than you think), and what the state of Illinois is doing to help families.

You can click or tap on the visual below to enlarge it, and keep reading below this infographic design. You’ll fund a written overview of how saving for college works in Illinois.

10 Things Every Illinois Family Needs to Know About Saving for College

Illinois families: saving for college is easier and less scary than you think. Illinois has some of the country’s top 529 plans to save money for college. And the state of Illinois offers the most generous tax incentives to encourage you to start saving now.

As outlined in the infographic above, here are 10 things that every Illinois family should know when it comes to saving for college.

1. According to a Georgetown University study, 70% of jobs will require college degrees or some form of post-secondary education by the end of the decade.

2. $33,000 is the average student debt per borrower for the class of 2020.

3. $266,000 is the projected cost of a four-year college degree at an in-state school in 2035.

4. A 529 plan offers a tax-advantaged way to save for college and other education expenses. Use your 529 plan funds to pay for university or college tuition, K-12 private school tuition, trade schools, online courses, books, computers, room & board, study abroad programs, student loans, and more.

5. Bright Start College Savings Program is Illinois’ state-sponsored 529 college savings plan.

6. Illinois also offers College Illinois! Prepaid Tuition Program. Enrollments are on hold for right now as policymakers revamp the program, but Illinois families should definitely sit tight as prepaid plans can be good options for students who will go to school in-state.

7. Bright Start College Savings Program will accept out-of-state enrollments.

8. $450,000 is the maximum contribution limit for an Illinois 529 plan. Contributions may be made to all Illinois 529 plans (for one beneficiary) until the balances of all 529 plans reaches $450,000.

9. Up to $20,000/year may be claimed as a state tax deduction for joint filers. Or up to $10,000/year for single filers.

10. You can save $18,648 more for college by putting $100 a month into a 529 plan instead of a bank savings account. (Over the course of 18 years, assuming a standard 6% yearly ROI for 529 plan.)

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