College Illinois — Will it Pay Off?
I have a senior in high school as well as a freshman in high school. I purchased three years (six semesters for each kid) of tuition for each child many years ago through College Illinois. I paid approximately $95 K out of pocket. Both contracts are paid in full. I just learned that CI has, again, stopped selling contracts. I’m fairly confident that my senior who is entering college in 2019 will receive his benefits. I am not so sure if the freshman will fare so well.
Do I pull my money out of College Illinois and put it into a mutual fund? I know if I do I will lose the benefit of my bargain (six semesters of tuition). The money I pull out will not fund six semesters.
Thank You.
Terry Says
Don’t pull out. I’ll give this advice knowing full well that Illinois’ financial situation is precarious. But there will be tremendous pressure to honor prepaid college tuition purchases — even if only by giving some sort of voucher to pay for the benefits. (I have no idea how Illinois schools would pay teachers or heating bills using those vouchers!)
But I would suggest that you start saving additional money for your younger child — using a 529 College Savings Plan (preferably diversifying your exposure — although these plans are segregated funds –by using a plan managed for another state). Check them out at www.SavingforCollege.com.
