In Observance of National 529 Day, Illinois Treasurer Michael Frerichs Encourages Families to Save for Higher Education Costs

Saving Even a Little Today Can Help a Child Avoid Years of Student Debt Tomorrow

SPRINGFIELD – Illinois State Treasurer Michael Frerichs is recognizing 529 Day today, May 29, by encouraging families to save for future education through Illinois’ highly rated Bright Start 529 or Bright Directions 529 college savings plans. Frerichs also announced new enhancements to the advisor-guided Bright Directions 529 plan.

“While ‘529 Day’ is tied to the calendar date of May 29, the observance highlights the importance of planning ahead and making education more affordable for Illinois families. It’s always a good time to plan for the future by opening or adding to a 529 account for your child, grandchild, niece, nephew, or yourself,” said Frerichs, who serves as Trustee and Administrator of the Illinois 529 college savings plans. “Saving even a little today can help a child avoid years of student debt tomorrow.”

Research shows children with college savings are significantly more likely to pursue post-secondary education.

“When a child knows he or she has a college savings account, that child is three times more likely to attend college,” he added. “By opening an account for a child and contributing to it, adults send a powerful message to the child: ‘I believe in you.’”

Illinois taxpayers receive tax benefits for contributing to an Illinois 529 plan, earnings grow tax-deferred, and withdrawals are tax-free when spent on qualified expenses. 529 accounts can be used for tuition, books, and other expenses at eligible educational institutions, including public and private schools; two-year and four-year colleges and universities; technical and vocational schools; and registered apprenticeship programs. Families have the option to open a Bright Start 529 account online or, for those who prefer to work with a financial advisor, Frerichs also administers the Bright Directions Advisor-Guided 529 College Savings plan.

Anyone can contribute to a 529 account, and there are no enrollment fees, minimum contributions, or minimum balance requirements to open or maintain one.

As part of this year’s 529 Day, Frerichs is unveiling enhancements to the advisor-guided Bright Directions 529 college savings program that will provide account holders with even greater access and convenience. With the new Bright Directions 529 phone app, account holders will have easy, seamless, in-their-pocket access to manage their account for such tasks as:

• Making contributions
• Monitoring investments
• Withdrawing funds for qualified expenses

“With Bright Directions 529, families benefit from the guidance of their trusted investment professional, now strengthened by the program’s new Client Access Portal and mobile app. These tools are intuitive, secure, and designed to make managing education savings easier than ever,” said Jay Steinacher, the 529 College Savings Group Manager at Union Bank & Trust, the program manager for Bright Directions 529.

The new Bright Directions 529 phone app can be downloaded from the App Store and from Google Play.

The new app is the latest in a string of enhancements that Treasurer Frerichs and Union Bank & Trust have implemented to make Bright Directions 529 a more modern and low-cost 529 plan. Over the past two years, Treasurer Frerichs and Bright Directions 529 have:

• Lowered fees
• Implemented a streamlined and higher-quality investment menu
• Introduced the industry’s first free, direct-to-college payment feature
• Introduced a new “campus cash card” to help families pay for their beneficiary’s books, materials, and food
• Implemented a new, revamped account portal for account holders and advisors
• Enhanced the gifting process

During his time as State Treasurer, Frerichs has also made significant improvements to the Bright Start 529 plan. He has significantly grown the plan and worked to reduce fees, ensuring that more of families’ investment dollars go directly to college savings. He also collaborated with state lawmakers to create Illinois First Steps, which provides a free, one-time $50 seed deposit for Illinois parents or legal guardians when they open a Bright Start 529 or Bright Directions 529 account for a child born or adopted in 2023 or later.

Like the new Bright Directions 529 app, the Bright Start 529 phone app — available on the App Store and Google Play — improves the user experience by allowing account owners to check account balances, open additional accounts, and contact loved ones to encourage them to contribute to a child’s account.

During Frerichs’ tenure, both the Bright Start 529 and Bright Directions 529 plans have earned consistent praise from outside evaluators.

For example, Illinois’ Bright Start 529 College Savings Plan earned its seventh Gold rating last fall from independent analyst Morningstar, firmly placing the plan among the best in the nation.

In the Morningstar ratings last fall, Bright Directions 529 received an upgrade to a Bronze rating. It was the only 529 plan in the nation to get a higher rating than last year. Morningstar has consistently identified Bright Directions 529 as one of the nation’s best options for families who prefer to work with a financial adviser.

Other independent evaluators, such as Time Magazine, Forbes, Kiplinger’s, and Motley Fool, also have praised Illinois’ 529 college savings plans.

“Since taking office, my priority has been to ensure Illinois families have access to the highest quality savings plans in the nation with low fees and a high-quality range of investment options,” Frerichs said. “I am proud of our track record in helping families save for the future.”

For more information about Bright Start 529, including how to open an account, go to BrightStart.com or call 877.432.7444. For more information about Bright Directions 529, go to BrightDirections.com or call 866.722.7283.

Media Contact
Adriana Colindres 217.558.1920

About the Treasurer

The Illinois State Treasurer’s Office is a powerful economic engine that invests in people to drive prosperity, development and growth throughout the state. As State Treasurer, Michael Frerichs (FRAIR’iks) is the state’s Chief Investment and Banking Officer and actively manages approximately $60 billion. The investments help families pay for college and trade school; workers save for a dignified retirement; and local governments process bill payments more efficiently so they can pass along the savings to taxpayers. The office provides financial institutions with money to loan to farmers, small business owners, and qualified individuals at below-market rates because better jobs create stronger communities. The office operates the state’s largest consumer-protection initiative, the missing money ICash program, which has returned a record-breaking $2.5 billion since Frerichs was elected.

For more news about the State Treasurer’s Office, please sign up for our newsletter and follow Treasurer Frerichs on YouTube at @TreasurerMichaelFrerichs, Instagram at IL Treasurer, Threads at @iltreasurer, on LinkedIn, and on Facebook at Invested in You – Treasurer Michael Frerichs.

About Bright Start and Bright Directions

The Bright Start Direct-Sold 529 College Savings Program (“Bright Start 529”) and the Bright Directions Advisor-Guided 529 College Savings Program (“Bright Directions 529”) are part of the Illinois College Savings Pool and are designed to qualify as qualified tuition programs under the provisions of Section 529 of the Internal Revenue Code. Bright Start 529 and Bright Directions 529 are sponsored by the State of Illinois and administered by the Illinois State Treasurer, as Trustee.

TIAA-CREF Tuition Financing, Inc. (TFI), serves as the Bright Start 529 plan manager. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, serves as distributor and underwriter for Bright Start 529. Union Bank & Trust Company serves as Program Manager, and Northern Trust Securities, Inc. acts as Distributor of the advisor-sold plan. Investments in Bright Start and Bright Directions are not guaranteed or insured by the State of Illinois, the Illinois State Treasurer, TFI, Union Bank & Trust Company, Northern Trust Securities, Inc., the Federal Deposit Insurance Corporation, or any other entity.

An investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities before investing. This and other important information is contained in the fund prospectuses and the Bright Start Program Disclosure Statement and Bright Directions Program Disclosure Statement, which can be obtained from your financial professional, on BrightStart.com, and BrightDirections.com and should be read carefully before investing. You can lose money by investing in a portfolio. Each of the portfolios involves investment risks, which are described in the Program Disclosure Statement.

An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan. Investors should consult a tax advisor.