By John Gregory/Illinois Radio Network
CHICAGO – Fees are being cut in one of the college savings plan offered through the Illinois Treasurer’s office.
Treasurer Mike Frerichs said management fees will be cut by 43 percent in the Illinois’ Bright Directions savings program, which allows parents to invest money for their child’s college tuition free of federal taxes.
Frerichs said reducing the fees won’t affect the management of the program.
“There’s no loss to us. We negotiated hard with the investment advisor, and they took a reduction in fees,” Frerichs said. “We think that when the Bright Start account contract comes back up, we’re going to take a similar approach because we think that reducing fees helps put more money where parents need it: in the their kids’ college savings accounts.”
The program’s $10 setup fee and quarterly $3 maintenance fee will be eliminated. Frerichs said if these charges had been slashed last year, nearly $3.6 million would’ve been saved for the 104,000 Bright Directions accounts in the state.
The changes go into effect November 15.
