SR1061 101ST GENERAL ASSEMBLY

SR1061 LRB101 17171 MST 66572 r

SENATE RESOLUTION

WHEREAS, 529 college savings plans are important tools for Illinois families who want to save for their children's college education; they offer a diverse range of investment options, tax-deferred growth, tax-deduction benefits, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, certain room and board costs, computer equipment, and required supplies; and

WHEREAS, The enactment of Section 529 of the Internal Revenue Code by Congress in 1996 allowed states to create "Qualified Tuition Programs"; and

WHEREAS, The Office of the Illinois State Treasurer serves as the Trustee and Administrator for Illinois 529 College Savings Plans; and

WHEREAS, The Bright Start and Bright Directions College Savings Plans were established in Illinois in 2000 and 2005 respectively, to assist Illinois families with financing the costs associated with a college education; and

WHEREAS, Today, more than 650,000 Bright Start and Bright Directions accounts have been created, and over $12 billion has been saved for higher education expenses; and

WHEREAS, The Bright Start and Bright Directions College Savings Plans have helped families meet their higher education goals with over $954 million withdrawn annually for qualified higher education expenses at colleges and universities in Illinois and throughout the United States; and

WHEREAS, In 2019, Morningstar announced that the Bright Start 529 College Savings Plan earned a gold rating for the third year in a row, and the Bright Directions Advisor-Sold 529 College Savings Plan earned its fifth consecutive silver medal, the highest honor bestowed on advisor-sold plans; and

WHEREAS, According to the Federal Reserve Bank of New York, student loan debt has now reached $1.6 trillion nationally, which is more than triple the amount owed in 2005; and

WHEREAS, In Illinois alone, student loan debt has increased by 111% from 2008 to 2018, and there are 1.6 million student borrowers with $60.9 billion in outstanding student loan debt; and

WHEREAS, In Illinois, the dream of achieving academic and professional success is being threatened by increasing tuition rates and decreasing financial aid; and

WHEREAS, Illinois' College Savings Plans help families to limit or prevent future student loan debt by helping them save for future higher education expenses; and

WHEREAS, The investments families make today pay off in the form of increased earning potential for their children in the future, with a college graduate earning an average of $1 million more than a high school graduate during his or her career according to the United States Census Bureau; and

WHEREAS, May 29th is recognized nationally as 529 College Savings Day to raise awareness across the country about the benefits of tax-advantaged college savings plans, known as 529 College Savings Plans, as important vehicles to save for college; therefore, be it

RESOLVED, BY THE SENATE OF THE ONE HUNDRED FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we declare May 29, 2020 as College Savings Day in the State of Illinois to help raise awareness about the escalating costs of higher education, the importance of saving for college with the help of 529 college savings plans, and to recognize and commemorate the 20th Anniversary of the Bright Start College Savings Plan; and be it further

RESOLVED, That a suitable copy of this resolution be presented to the State Treasurer's Office.