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Pre-Paid Tuition

Every state now has at least one education savings plan that allows families to set aside funds for future college costs. The plans are usually categorized as either prepaid tuition plans or savings plans, although some have elements of both. These educational savings plans are also referred to as Section 529 plans, because they may provide special tax benefits under Section 529 of the Internal Revenue Code. The value of these education savings plans should be included as other investments on the FAFSA form. For more information, visit the Internal Revenue Service website.

The State of Illinois offers the College Illinois Prepaid Tuition Plan and the Bright Start College Savings Plan. The College Savings Plan Network allows you to obtain information on the plans available in other states.