Democratic State Treasurer Mike Frerichs and Republican Congressman Rodney Davis shared a podium at the University of Illinois Urbana campus Wednesday to promote the expansion of 529 College Savings Plans. 529’s help families save for college by providing tax breaks and other financial advantages.
As Illinois treasurer, Frerichs is the Trustee for the three state-sponsored 529 plans, the Bright Start and Bright Directions college savings plans and the College Illinois pre-paid tuition plan.
Frerichs says just having a plan can help a student’s prospects, no matter how much money is in it.
FRERICHS: “There was a study conducted by two researchers at Washington University that showed that if a young person knows they have a college savings account in their name, they are seven times more likely to go to college … because they know that someone expects them to go to college.”
Frerichs supports legislation in Springfield that would extend the life of the state tax credit for matching funds contributed by employers to 529 plans.
Meanwhile, Congressman Davis is co-sponsor of a bill in Washington to allow families to use money in their 529 accounts to help pay off student loan debt.