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1
SENATE 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, tax-deduction benefits, and withdrawals
6free of state and federal taxes when those withdrawals are used
7for qualified higher education expenses such as tuition, fees,
8books, certain room and board costs, computer equipment, and
9required supplies; and
 
10    WHEREAS, The enactment of Section 529 of the Internal
11Revenue Code by Congress in 1996 allowed states to create
12"Qualified Tuition Programs"; and
 
13    WHEREAS, The Office of the Illinois State Treasurer serves
14as the Trustee and Administrator for Illinois 529 College
15Savings Plans; and
 
16    WHEREAS, The Bright Start and Bright Directions College
17Savings Plans were established in Illinois in 2000 and 2005
18respectively, to assist Illinois families with financing the
19costs associated with a college education; and
 
20    WHEREAS, Today, more than 650,000 Bright Start and Bright
21Directions accounts have been created, and over $12 billion has

 

 

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1been saved for higher education expenses; and
 
2    WHEREAS, The Bright Start and Bright Directions College
3Savings Plans have helped families meet their higher education
4goals with over $954 million withdrawn annually for qualified
5higher education expenses at colleges and universities in
6Illinois and throughout the United States; and
 
7    WHEREAS, In 2019, Morningstar announced that the Bright
8Start 529 College Savings Plan earned a gold rating for the
9third year in a row, and the Bright Directions Advisor-Sold 529
10College Savings Plan earned its fifth consecutive silver medal,
11the highest honor bestowed on advisor-sold plans; and
 
12    WHEREAS, According to the Federal Reserve Bank of New York,
13student loan debt has now reached $1.6 trillion nationally,
14which is more than triple the amount owed in 2005; and
 
15    WHEREAS, In Illinois alone, student loan debt has increased
16by 111% from 2008 to 2018, and there are 1.6 million student
17borrowers with $60.9 billion in outstanding student loan debt;
18and
 
19    WHEREAS, In Illinois, the dream of achieving academic and
20professional success is being threatened by increasing tuition
21rates and decreasing financial aid; and
 

 

 

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1    WHEREAS, Illinois' College Savings Plans help families to
2limit or prevent future student loan debt by helping them save
3for future higher education expenses; and
 
4    WHEREAS, The investments families make today pay off in the
5form of increased earning potential for their children in the
6future, with a college graduate earning an average of $1
7million more than a high school graduate during his or her
8career according to the United States Census Bureau; and
 
9    WHEREAS, May 29th is recognized nationally as 529 College
10Savings Day to raise awareness across the country about the
11benefits of tax-advantaged college savings plans, known as 529
12College Savings Plans, as important vehicles to save for
13college; therefore, be it
 
14    RESOLVED, BY THE SENATE OF THE ONE HUNDRED FIRST GENERAL
15ASSEMBLY OF THE STATE OF ILLINOIS, that we declare May 29, 2020
16as College Savings Day in the State of Illinois to help raise
17awareness about the escalating costs of higher education, the
18importance of saving for college with the help of 529 college
19savings plans, and to recognize and commemorate the 20th
20Anniversary of the Bright Start College Savings Plan; and be it
21further
 

 

 

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1    RESOLVED, That a suitable copy of this resolution be
2presented to the State Treasurer's Office.