Full Text of SJR0006 103rd General Assembly
SJ0006 103RD GENERAL ASSEMBLY |
| | SJ0006 | | LRB103 24910 LAW 51244 r |
|
| 1 | | SENATE JOINT RESOLUTION
| 2 | | WHEREAS, 529 college savings plans are important tools for | 3 | | Illinois families who want to save for their
children's | 4 | | college education; they offer a diverse range of investment | 5 | | options, tax-deferred growth, and
withdrawals free of state | 6 | | and federal taxes when those withdrawals are used for | 7 | | qualified higher education
expenses such as tuition, fees, | 8 | | books, certain room and board costs, computer equipment, and | 9 | | required
supplies; and
| 10 | | WHEREAS, While the first college savings plans were | 11 | | developed by states in 1988 as innovative
programs designed to | 12 | | help families and students save for higher education expenses, | 13 | | it was not until the
enactment of Section 529 of the Internal | 14 | | Revenue Code by Congress in 1996 that college savings plans
| 15 | | began to rapidly gain popularity across the country; and
| 16 | | WHEREAS, Today, all 50 states and the District of Columbia | 17 | | offer 529 college savings plans; 12.5
million 529 accounts | 18 | | have been opened, more than $253 billion dollars have been | 19 | | saved for future higher
education expenses, and more than one | 20 | | million students nationwide have withdrawn funds from 529
| 21 | | accounts to help pay higher education expenses; and | 22 | | WHEREAS, The Illinois Treasurer currently offers and |
| | | SJ0006 | - 2 - | LRB103 24910 LAW 51244 r |
|
| 1 | | administers two 529 college savings plans, the Bright Start | 2 | | College Savings Plan and the Bright Directions College Savings | 3 | | Plan; and | 4 | | WHEREAS, In 2018, Morningstar, which independently | 5 | | evaluates and rates college savings plans, selected the Bright | 6 | | Start 529 College Savings Plan as a Gold-Rated 529 and granted | 7 | | the Bright Directions Advisor-Guided 529 College Savings Plan | 8 | | a silver rating, which was the highest rating for all | 9 | | advisor-sold plans; and
| 10 | | WHEREAS, 529 college savings plans allow families to save | 11 | | for tuition at two-year and four-year
institutions, including | 12 | | vocational, trade, community, state, or technical schools; and | 13 | | WHEREAS, Illinois residents can claim a state tax | 14 | | deduction on contributions of up to $10,000 a year
($20,000 | 15 | | for married couples filing jointly) to any state plan; and | 16 | | WHEREAS, In 2000, the average tuition rate at an Illinois | 17 | | public university was $4,160, while the average
rate at a | 18 | | private four-year institution was $15,625; in 2018, those | 19 | | rates skyrocketed to $15,182 for public
universities and | 20 | | $36,747 for private universities; and | 21 | | WHEREAS, Federal financial aid awards have shifted away |
| | | SJ0006 | - 3 - | LRB103 24910 LAW 51244 r |
|
| 1 | | from student grants and moved to providing access to
| 2 | | guaranteed student loans so that, today, nearly 63 percent of | 3 | | all federal financial aid is in the form of
loans, | 4 | | substantially increasing the number of college graduates who | 5 | | will face the burden of repaying
significant student loan debt | 6 | | upon entering the workforce; and | 7 | | WHEREAS, As of 2018, student loan debt had reached $1.5 | 8 | | trillion nationally, which rose from
$548 billion in 2007, and | 9 | | more than 1.6 million Illinois residents had student loans | 10 | | totaling more than
$52 billion; and | 11 | | WHEREAS, When Illinoisans are burdened with student loan | 12 | | debt, they are not able to buy homes, cars,
and other products | 13 | | that boost our economy; and | 14 | | WHEREAS, College savings plans, such as Bright Start and | 15 | | Bright Directions, help
families limit or eliminate future | 16 | | student loan debt by helping them save for future higher | 17 | | education
expenses; and
| 18 | | WHEREAS, The contributions families make today pay off in | 19 | | the form of an increased earning potential
for their children | 20 | | in the future, with a college graduate earning an average of $1 | 21 | | million more than a high
school graduate during his or her | 22 | | career, according to the United States Census Bureau; and
|
| | | SJ0006 | - 4 - | LRB103 24910 LAW 51244 r |
|
| 1 | | WHEREAS, May 29th is recognized nationally as 529 College | 2 | | Savings Day to help raise awareness
across the country of the | 3 | | importance of saving for college with the help of 529 college | 4 | | savings plans; therefore, be it
| 5 | | RESOLVED, BY THE SENATE OF THE ONE HUNDRED THIRD GENERAL | 6 | | ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF | 7 | | REPRESENTATIVES CONCURRING HEREIN, that we declare May 29, | 8 | | 2023 as 529 College Savings Day in the State of Illinois; and | 9 | | be it further | 10 | | RESOLVED, That we urge all Illinoisans to explore the | 11 | | benefits that 529 college savings plans offer
families; and be | 12 | | it further
| 13 | | RESOLVED, That suitable copies of this resolution be | 14 | | delivered to the Governor of Illinois, the
Director of the | 15 | | Illinois Student Assistance Commission, the Treasurer of | 16 | | Illinois, the Director of the Community College Board, and the
| 17 | | Director of the Board of Higher Education.
|
|