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SPRINGFIELD, Ill. (AP) — The state of Illinois is reducing fees on its Bright Directions 529 college savings plan to help families put more of their investment toward rising tuition costs.
According to the Illinois treasurer's office, the change eliminates a $10 setup fee and $3 quarterly maintenance fee, and cuts management fees by 43 percent. Officials said Tuesday more than 104,000 accounts will benefit from the new terms, saving investors nearly $3.6 million annually.
Illinois Treasurer Michael Frerichs says because a college education opens doors that otherwise would remain locked, everything must be done to make higher education affordable for families.
A 529 plan allows families to save for college with an investment that is free from federal taxes. Such programs are administered on a state-by-state basis, with a variety of investment strategies.
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