SR1840 99TH GENERAL ASSEMBLY

SR1840 LRB099 21664 MST 48167 r

SENATE RESOLUTION

WHEREAS, 529 college savings plans are important tools for Illinoisans, offering a diverse range of investment options, tax-deferred growth, tax-deductions benefits, and withdrawals free of State and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, computers, certain room and board costs, 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 all Illinois 529 College Savings Plans; and

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

WHEREAS, Today, over 400,000 accounts have been created in Illinois and over $7 Billion have been saved for future higher education expenses; and

WHEREAS, The Bright Start and Bright Directions College Savings Plans have helped families meet their higher education goals with over $400 million withdrawn annually for qualified higher education expenses at colleges and universities in Illinois and throughout the United States; and

WHEREAS, In Illinois, over the past 15 years, tuition rates at four-year universities, and over the past 40 years, tuition rates have consistently increased at two to three times the rate of inflation every year; and

WHEREAS, Financial Assistance has shifted away from grants to providing access toward student loans so that today nearly 60% of all federal financial aid is in the form of loans, substantially increasing the number of college graduates who will face the burden of repaying significant student loan debt upon entering the workforce; and

WHEREAS, According to the Federal Reserve Bank of New York, student loan debt has now reached $1.2 trillion nationally, which is more than triple the amount owed in 2005; and

WHEREAS, Americans are burdened with student loan debt as there are 40 million borrowers with an average balance of $29,000; and

WHEREAS, The 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, In Illinois, the dream of achieving academic and professional success is being threatened by increasing tuition rates and decreasing financial aid; 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 NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we designate the date of May 29, 2016 as 529 College Savings Day in the State of Illinois to help raise awareness about the escalating costs of higher education and the importance of saving for college with the help of 529 college savings plans.