Program Highlights

Today more than ever, students need to further their education to compete in the job market. At the same time, college costs across the country continue to rise. Bright Directions College Savings Program (“Bright Directions”) can help families and students make this an easier and more manageable experience. The program offers:

Great Tax Advantages

Illinois state income tax deduction¹

$20,000 for married couples filing jointly
$10,000 for individuals

Tax-deferred growth
Tax-free withdrawals for qualified college expenses²

Excellent Investment Diversity & Flexibility

Multi-managed with well-respected fund families
3 age-based portfolios
7 target portfolios
27 individual fund portfolios
8 female- and minority-owned portfolios

Attractive Design and Cost Structure

Investment professional assistance throughout the process
Covers the following college costs: tuition and fees, books, supplies, equipment required for enrollment, and room and board (must be enrolled on at least a half-time basis for room and board to be covered). In 2009 and 2010, withdrawals may be tax-free if used for a computer, computer equipment, or internet access.
Utilize funds nationwide at public and private colleges and universities; vocational, trade, technical, and professional institutions; and even some foreign schools
Competitive fees and expenses
No minimum, high maximum contribution limit.

1) Individuals who file individual Illinois state income tax returns can deduct up to $10,000 per tax year ($20,000 if filing jointly) for their total, combined contributions to the Bright Directions College Savings Program, the Bright Start College Savings Program, and College Illinois! during that tax year. The $10,000 individual and $20,000 (joint) limit on deductions will apply to total contributions made without regard to whether the contributions are made to a single account or more than one account.

2) Withdrawals used to pay for qualified higher education expenses are income tax-free (Federal and State of Illinois). Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment at a qualified institution of higher education. Room and board is considered a qualified higher education expense if the student is enrolled on at least a half-time basis. Computers, computer equipment and Internet access and related services that the Beneficiary or the Beneficiary's family use during the time the Beneficiary is enrolled are also considered qualified higher education expenses if paid or incurred in 2009 or 2010.

The Program is intended to be used only to save for Qualified Higher Education Expenses. The Program is not intended to be used, nor should it be used, by any taxpayer for the purpose of evading federal or state taxes or tax penalties. Taxpayers may wish to seek tax advice from an independent tax advisor based on their own particular circumstances.

Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value.

The Bright Directions® College Savings Program is part of the Illinois College Savings Pool and is designed to qualify as a qualified tuition program under the provisions of Section 529 of the Internal Revenue Code. The Bright Directions® College Savings Program is sponsored by the State of Illinois and administered by the Illinois State Treasurer, as Trustee. Union Bank & Trust Company serves as Program Manager, and Northern Trust Securities, Inc., acts as Distributor.

Securities, products, and services are offered by Northern Trust Securities, Inc., member FINRA.

You should be aware that other states may sponsor their own qualified tuition plans and may offer a state tax deduction or other benefits that are limited to residents who invest in that plan. You should consult with a tax advisor about state and local taxes.

Withdrawals used to pay for qualified higher education expenses are income tax-free (Federal and State of Illinois). Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment at a qualified institution of higher education. Room and board is considered a qualified higher education expense if the student is enrolled on at least a half-time basis. Computers, computer equipment and Internet access and related services that the Beneficiary or the Beneficiary's family use during the time the Beneficiary is enrolled are also considered qualified higher education expenses if paid or incurred in 2009 or 2010.

Every individual’s tax situation is different, and it is important to consult a qualified tax advisor regarding the application of the Program’s benefits to your own individual situation.

There is no guarantee that any investment portfolio will achieve its investment goals. The value of an account will go up or down based on the performance of the Portfolio in which the account is invested. When funds are withdrawn, they may have more or less than the total contributions made to the account. Past investment performance is no guarantee of future results.

Investments in the Bright Directions® College Savings Program are not guaranteed or insured by the State of Illinois, the Illinois State Treasurer, Union Bank & Trust Company, Northern Trust Securities, Inc., the Federal Deposit Insurance Corporation, or any other entity. An investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities and the underlying investment companies before investing. Please contact your investment professional or call 866–722–7283 to obtain a Program Disclosure Statement (issuer’s official statement) or prospectus for any of the underlying funds. Please read the Program Disclosure Statement carefully prior to investing.