Program Description

What Is the Bright Directions College Savings Program?

The program is an education savings program established by the state of Illinois and is designed to qualify as a qualified tuition program under Section 529 of the Code. The primary purpose of the program is to promote and enhance the affordability and accessibility of higher education by offering a convenient and tax-advantaged way to save for the cost of college and other qualifying post-high school education. Federal income taxes on investment earnings in an account are deferred until there is a distribution from the account. Moreover, under current law, a distribution is free from federal and Illinois state income tax if it is used to pay the higher education costs of the beneficiary.

Accounts in the pool are offered in different ways. Accounts in the program are offered through brokers or other financial advisors and are intended to allow participants to seek advice from their financial professional about an investment in the program. Before investing in the program, you should consult with your financial professional about whether an investment in the program is appropriate in light of your overall financial goals and whether an investment in the program is an appropriate vehicle for you to use to save for higher education costs. If you decide to invest in the program you should also consult with your financial professional about the appropriate portfolio or portfolios in which to invest contributions.

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.