Illinois Reducing Fees on College Savings Plan

My children are both under the age of three, so I have some time to plot how potential college educations might be paid for. One option just got a little cheaper.

The state of Illinois has announced it is reducing fees on its Bright Directions 529 college savings plan. According to the Chicago Tribune:

The change, which takes effect Nov. 15, 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.

If you are not familiar with a 529 plan, it allows families to save for college with investments that are free from federal taxes on the growth of the money. According to the Tribune, the Illinois college savings program offers 55 investment options. Officials say Bright Directions has about $2 billion under management.