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1
HOUSE JOINT RESOLUTION

 
2    WHEREAS, 529 college savings plans are important tools for
3Illinois families who want to save for their children's college
4education; they offer a diverse range of investment options,
5tax-deferred growth, and withdrawals free of state and federal
6taxes when those withdrawals are used for qualified higher
7education expenses such as tuition, fees, books, certain room
8and board costs, computer equipment, and required supplies; and
 
9    WHEREAS, While the first college savings plans were
10developed by states in 1988 as innovative programs designed to
11help families and students save for higher education expenses,
12it was not until the enactment of Section 529 of the Internal
13Revenue Code by Congress in 1996 that college savings plans
14began to rapidly gain popularity across the country; and
 
15    WHEREAS, Today, all 50 states and the District of Columbia
16offer 529 college savings plans; 12.5 million 529 accounts have
17been opened, more than $253 billion dollars have been saved for
18future higher education expenses, and more than one million
19students nationwide have withdrawn funds from 529 accounts to
20help pay higher education expenses; and
 
21    WHEREAS, The Illinois Treasurer currently offers and
22administers two 529 college savings plans, the Bright Start

 

 

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1College Savings Plan and the Bright Directions College Savings
2Plan; and
 
3    WHEREAS, In 2018, Moringstar, which independently
4evaluates and rates college savings plans, selected the Bright
5Start 529 College Savings Plan as a Gold-Rated 529 and granted
6the Bright Directions Advisor-Guided 529 College Savings Plan a
7silver rating, which was the highest rating for all
8advisor-sold plans; and
 
9    WHEREAS, 529 college savings plans allow families to save
10for tuition at two-year and four-year institutions, including
11vocational, trade, community, state, or technical schools; and
 
12    WHEREAS, Illinois residents can claim a state tax deduction
13on contributions of up to $10,000 a year ($20,000 for married
14couples filing jointly) to any state plan; and
 
15    WHEREAS, In 2000, the average tuition rate at an Illinois
16public university was $4,160, while the average rate at a
17private four-year institution was $15,625; in 2018, those rates
18have skyrocketed to $15,182 for public universities and $36,747
19for private universities; and
 
20    WHEREAS, Federal financial aid awards have shifted away
21from student grants and moved to providing access to guaranteed

 

 

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1student loans so that, today, nearly 63 percent of all federal
2financial aid is in the form of loans, substantially increasing
3the number of college graduates who will face the burden of
4repaying significant student loan debt upon entering the
5workforce; and
 
6    WHEREAS, As of 2018, student loan debt has now reached $1.5
7trillion nationally, which rose from $548 billion in 2007, and
8more than 1.6 million Illinois residents have student loans
9totaling more than $52 billion; and
 
10    WHEREAS, When Illinoisans are burdened with student loan
11debt, they are not able to buy homes, cars, and other products
12that boost our economy; and
 
13    WHEREAS, College savings plans, such as Bright Start and
14Bright Directions, help families limit or eliminate future
15student loan debt by helping them save for future higher
16education expenses; and
 
17    WHEREAS, The contributions families make today pay off in
18the form of an increased earning potential for their children
19in the future, with a college graduate earning an average of $1
20million more than a high school graduate during his or her
21career, according to the United States Census Bureau; and
 

 

 

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1    WHEREAS, May 29th is recognized nationally as 529 College
2Savings Day to help raise awareness across the country of the
3importance of saving for college with the help of 529 college
4savings plans; therefore, be it
 
5    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE
6HUNDRED FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE
7SENATE CONCURRING HEREIN, that we declare May 29, 2019 as 529
8College Savings Day in the State of Illinois; and be it further
 
9    RESOLVED, That we urge all Illinoisans to explore the
10benefits that 529 college savings plans offer families; and be
11it further
 
12    RESOLVED, That suitable copies of this resolution be
13delivered to the Governor of Illinois, the Director of the
14Illinois Student Assistance Commission, the Treasurer of
15Illinois, the Director of the Community College Board, and the
16Director of the Board of Higher Education.