Ask Terry Questions College Illinois — an alternative?

College Illinois — an alternative?

By Terry Savage on December 11, 2017 | College Savings / Student Loans

With news of the College Illinois 529 program being halted again, I was hoping you can advise what families should do who have already started investing in this program. Luckily our child is only in 4th grade so college is not in the immediate future. We have about $17,000 saved in the program to date. Just wondering what you suggest we do to not lose our money and how to get into a more secure college savings plan going forward.

Terry Says

CollegeIllinois hasn't yet announced how they will deal with the money already invested in the plan, but surely it isn't going to buy the promised semesters of tuition.  I will report on it when they make some decisions. I would suggest a 529 investment type plan, with a conservative approach (since you get to pick the investment choices within the plan).  I opened a plan with Vanguard, using their state plans for my grandchildren, knowing their costs are always the lowest.  But go to to compare plans.  Illinois recently made some changes to lower fees -- and this type of 529 plan is not a liability of the state but a completely separate situation.  You also get a small state tax deduction for up to $10,000 of contributions.



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