As the administrator of the College Illinois! 529 Prepaid Tuition Plan, I write to correct inaccuracies in Terry Savage’s Dec. 18 article “Prepaid tuition plans don’t always go the distance.” Our “Program Update,” which is accessible from the home page of our website, explains that the sale of new contracts for the 2017-18 enrollment period is currently on hold as we continue discussions with policymakers to define proposals that would address the plan’s unfunded liability and strengthen the plan.
Plan holders with beneficiaries in college will continue to see benefits paid as usual. The program retains a substantial investment portfolio in a separate trust fund to continue to pay obligations for a number of years without requiring additional funding from the state. According to the June 30 actuarial reports, assets totaled about $951 million, corresponding to a 75 percent funded ratio, and would be sufficient to cover payments through 2024.
The article also unfortunately reflects a fundamental misunderstanding of many prepaid plans, including College Illinois!. The program is not just for Illinois public schools. The value of College Illinois! plan benefits can be also be used at any private or out-of-state school recognized by the U.S. Department of Education.
We look forward to continuing to work with policymakers to improve and strengthen College Illinois! on behalf of all our plan holders. We are always available to talk with constituents to help ensure they have accurate and up-to-date information about the program.
— Eric Zarnikow, executive director, Illinois Student Assistance Commission, Deerfield
