Illinois launching new program to help parents save for college education

CHICAGO - Illinois lawmakers are praising a new program to help parents save money on sending their kids to college.

The new program is called Illinois First Steps college savings programs and leaders are encouraging parents to open an account.

Nearly $2.5 million is going toward the program, and parents who enroll can qualify for a deposit of $50 from the state.

Officials say this initiative will help parents in the long run.

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"And with limited access to higher education, workers have less access to high paying jobs and wealth-building opportunities. That's why it's incumbent upon all of us to build the foundation from which everyone in the state has access to the opportunity to grow their incomes, build their wealth and pursue education," said Horacio Mendez, president and CEO at the Woodstock Institute in Chicago.

To qualify for the start-up money from the state, parents or legal guardians must be Illinois residents at the time of birth or adoption and the child must be born or adopted after Jan. 1, 2023.

Parents must also open an Illinois 529 College Savings account with Bright Start or Bright Directions and submit a claim for the $50 First Steps deposit before the child turns 10 years old.

Money in a 529 college savings account can be used at eligible schools, including public and private, two-year, four-year colleges and universities, and certain technical and vocational schools. The investment grows tax-free when spent on qualified expenses, officials said.

Parents who already have a Bright Start account for their eligible child can go to brightstart.com/first-steps/claim/ to submit a claim.