State Treasurer Michael Frerichs Offers Tips on Tapping into Bright Start Money to Pay College Bills

State Treasurer Michael Frerichs Offers Tips on Tapping
into Bright Start Money to Pay College Bills

 It’s an exciting time for high school seniors and their parents throughout Illinois. Students have walked the stage at graduation and chosen a college after months of deliberation.

Now the university is asking for the first tuition payment to
cover the fall semester. After years of socking away money and
growing your nest egg through careful investment, it is finally time
to make a withdrawal from your Bright Start 529 college savings
plan.

Illinois State Treasurer Michael Frerichs has some how-to tips
to make the process easy.

“Parents are rightfully proud of all that their daughters and
sons have achieved,” Frerichs said. “We aim to provide a friction-
free experience so you can tap into the money that you’ve
responsibly set aside since your child was just an infant.”

Whether you log in* to your account to make the withdrawal
or fill out a form** and mail it in or call (877) 432-7444 to speak
with an expert, there are a few key steps:

• If you’re using the Bright Start website, log in with your
username and password and click “transact online” in the upper
left corner, then click “withdrawal.”

• You’ll be asked what kind of withdrawal you would like to
make. If you are paying for educational expenses, you want to do a “qualified withdrawal,” so click on that. The money can go toward tuition, fees, books, supplies, and equipment such as a computer or software if it is to be primarily used for school. Your Bright Start 529 money also can cover room and board if your student is enrolled at least half-time.

• The next step: You can make a partial or full withdrawal,
or a full withdrawal and close your account. If your young adult is
just starting school, you’ll want to choose “partial” withdrawal and
fill in the dollar amount to let Bright Start know how much money
you want to take out. You also will be asked to select the “withdrawal amount type.” You get to pick the dollar amount you want to withdraw from each of your portfolio funds, or you can pick a percentage to be withdrawn from each of the types of funds your 529 account is invested in.

• Next, you can tell Bright Start where to send the money.
You can choose to have the funds electronically sent to your bank
account or the university, or request a check be mailed to your
home. Some schools require electronic payments to the institution.
(If you have not already entered the school into your Bright Start
account, you will have to add it. You will need your young adult’s
student ID number, which the university can provide.)
• The final step to receive the money is to authorize and sign
the withdrawal. For most parents, an electronic signature or handwritten (if you’re mailing in the form) signature will suffice. There are three scenarios where you will have to visit a qualified financial institution such as a bank to have your signature confirmed on-site for enhanced security: If you have changed your address within 15 days of the withdrawal request, do not already have your bank account information on file with Bright Start, or are asking to take out more than $50,000.

It is best to plan ahead when requesting a withdrawal. Please
allow several days for your bank to process an electronic transfer
to your account (or directly to a university or college) and 7-10
days if you want a check to be mailed. More details on withdrawing money are available on the Bright Start website. If you needhelp, you can call (877) 432-7444 or check out Bright Start’s help page.

For more information about the Treasurer’s Office 529
College Savings programs, which have won Morningstar’s highest
consumer rating1 five years in a row, visit https://illinoistreasurer.
gov/.

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