Higher education is widely recognized as a critical tool to for creating equity and achieving economic security, especially for children of lower-income parents.

Higher education is widely recognized as a tool for achieving economic security, especially for children from lower-income backgrounds. However, due to the rapidly increasing cost of college and cuts to public funding for state universities, this goal is increasingly out of reach for many middle- and low-income families.  

College Savings Accounts, also known as 529 plans, are a useful tool for bridging this gap by providing families with a low-cost, tax-advantaged vehicle for saving. In Illinois, the Illinois State Treasurer’s Office administers the state’s two 529 College Savings Plans – Bright Start and Bright Directions. A major goal of the Illinois State Treasurer’s Office is to expand the number and diversity of Illinois families saving for college.  

The Inclusive Economy Lab is partnering with the Illinois State Treasurer’s Office to expand access to college for Illinois families by improving participation in the 529 program and helping account owners make the most of their plans. This research partnership will include extensive analysis of available administrative data and survey research with representative samples of parents and existing 529 account owners. 

Access the latest brief here.

The Promise of 529 Plans