Illinois Bright Start 529 College Program to Cut Fees, Enhance Services

Families participating in Illinois' Bright Start 529 College Savings Program will soon benefit from reduced fees and enhanced investment options.

New Fee Structure and Improved Investment Options Announced

Illinois State Treasurer Michael Frerichs revealed these changes on Thursday, aiming to make college savings more accessible and cost-effective for families across the state.

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Frerichs highlighted the program's continuous improvements saying, "We worked to ensure that more of a family’s hard-earned savings goes toward the cost of college or vocational school."

TIAA Takes Over as Program Manager

Starting September 30, TIAA, a leader in 529 college savings plans, will manage the Bright Start 529 program. This transition marks the largest new plan mandate in TIAA’s history and signifies a strategic shift to improve the program’s performance, according to a press release.

David Nason, TIAA’s Chief Operating Officer, said the partnership with TIAA is a step towards helping families gain long-term economic opportunities. “The 529 marketplace is dynamic, and it is essential we provide college savers in Illinois the tools and information they need,” Nason said.

Significant Fee Reductions and Enhanced Technology

According to a press release from the Office of the Illinois State Treasurer, the fee structure will see a 13 percent reduction in average asset-weighted fees, building on the previous savings of over $100 million.

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This is to help families put more funds toward education expenses, along with a new Bright Start mobile app that will offer users a streamlined experience, including account management, balance checks, and easy money transfers directly to colleges.

The Illinois State Treasurer's Office will also transition from an Age-Based Portfolio structure to an Enrollment Year Portfolio structure, allowing for more flexible investment strategies, aligning with the future student’s year of enrollment rather than their age.

Transition Period and Account Access

The transition to TIAA will take place from September 25 to September 29, during which account transactions will be suspended.

Account holders are advised to withdraw funds by September 18 to avoid any disruptions. Once the transition is complete, users will need to re-establish online account access and update payroll instructions.

Bright Start 529 has earned accolades from major financial publications and remains one of the nation’s top college savings plans, according to the press release.

For more information or to open an account, visit BrightStart.com.