529 College Savings Plans
Nearly every state now has at least one 529 plan available. It is up to each state to decide whether it will offer a 529 plan and what it will look like - meaning 529 plans can differ from state to state.
For your Savings Plan - please be sure to reach out to your point of contact for information on notifying Millikin. We will submit fall and spring enrollment to your 529 Plan. If you would like summer enrollment submitted, please be sure to contact our office. It is important to check with your plan to make sure you have enough eligibility for additional terms such as summer.
College Illinois - 529 Prepaid Tuition Program
When attending a private institution, the student must complete an "Intent to Enroll Form". This form can be found on the College Illinois Website (link is external). Completion of this form places the student's name on Millikin's roster for College Illinois. Millikin will use the roster from College Illinois to submit tuition and mandatory fees, less tuition restricted scholarships and grants for payment. If you have questions on what will pay based on the figure submitted for payment, please contact College Illinois.
What are the differences between prepaid tuition plans and college savings plans?
Prepaid Tuition Plans
Prepaid tuition plans let a college saver or account holder purchase units or credits at participating colleges and universities (usually public and in-state) for future tuition and mandatory fees at current prices for the beneficiary. Prepaid tuition plans usually cannot be used to pay for future room and board.
Most prepaid tuition plans are sponsored by state governments and have residency requirements for the college saver and/or beneficiary. Prepaid plans are not guaranteed by the federal government. Some state governments guarantee the money paid into the prepaid tuition plans that they sponsor, but some do not. If your prepaid tuition payments are not guaranteed, you may lose some or all of your money in the plan if the plan’s sponsor has a financial shortfall. In addition, if a beneficiary does not attend a participating college or university, the prepaid tuition plan may pay less than if the beneficiary attended a participating college or university. It may only pay a small return on the original investment.
College Savings Plans
College savings plans let a college saver open an investment account to save for the beneficiary’s future qualified higher education expenses – tuition, mandatory fees and room and board. Withdrawals from college savings plan accounts can generally be used at any college or university, including sometimes at non-U.S. colleges and universities. A college saver may typically choose among a range of investment portfolio options, which often include various mutual fund and exchange-traded fund (ETF) portfolios and a principal-protected bank product. These portfolios also may include static fund portfolios and age-based portfolios (sometimes called target-date portfolios). Age-based portfolios automatically shift toward more conservative investments as the beneficiary gets closer to college age.
All college savings plans are sponsored by state governments, but only a few have residency requirements for the college saver and/or beneficiary. State governments do not guarantee investments in college savings plans. College savings plan investments in mutual funds and ETFs are not federally guaranteed, but investments in some principal-protected bank products may be insured by the FDIC. Similar to most investments, investments in college savings plans may not make any money and could lose some or all of the money invested.