Program Description

What Is the Bright Directions College Savings Program?
How Does the Program Work?
What Expenses May Be Paid With Account Funds?
Which Schools Are Eligible Institutions?
What Is the Legal Structure of the Program?

1. What Is the Bright Directions College Savings Program?

The Bright Directions College Savings Program is a 529-qualified tuition program established by the State of Illinois offering a choice of 35 investment options. It provides investors with several benefits including:

Illinois state income tax deduction¹
Tax-deferred growth and tax-free withdrawals for qualified college expenses²
Advantage of working with an investment professional
Excellent investment diversity and flexibility
Attractive and competitive cost structure

2. How Does the Program Work?

Work with a financial advisor to determine whether an investment in Bright Directions makes sense
Meet with your advisor to complete an enrollment form and other necessary documentation
Make contributions to the account
As beneficiary incurs higher education expenses,² tax-free withdrawals can be made to pay for those costs at any accredited school

3. What Expenses May Be Paid With Account Funds?

Tuition
Fees
Books, supplies, equipment
Reasonable room and board (if enrolled at least half-time)

4. Which Schools Are Eligible Institutions?

Public and private colleges and universities
Vocational, trade, technical, and professional institutions
Select foreign schools
For a list of eligible schools, click here

5. What Is the Legal Structure of the Program?

Illinois State Treasurer acts as trustee and is responsible for administering the Program
Union Bank & Trust Company acts as program manager for the Program
Northern Trust Securities, Inc., acts as distributor for the Program

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 CollegeIllinois! 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.

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.

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.

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. Investors should read carefully and consider the investment objectives, risks, fees, and expenses contained in the Program Disclosure Statement (issuer's official statement) before investing. The Program Disclosure Statement, which contains additional information about the plan and municipal fund securities, is available from your financial advisor.