SPRINGFIELD – A measure sponsored by State Senator Laura Ellman (D-Naperville) that would allow students to use 529 college savings accounts for additional purposes without additional taxation passed committee on Wednesday.
“This measure expands the uses of college savings plans to better reflect the realities of higher education,” Ellman said. “Some students need to use their savings plans to pay for loans or job-training programs.”
The measure would allow up to $10,000 to be used for additional education-related purposes without being taxed, making Illinois law consistent with federal law.
The additional education-related purposes are:
- Interest payments on the student’s qualified education loan, and
- To cover expenses for fees, text books, supplies and other materials needed to participate in certain vocational apprenticeship programs registered and certified with the secretary of labor.
“Every resident of Illinois deserves the chance to succeed and decide their future,” Ellman said. “Broadening the uses of this savings program gives our young people more options.”
House Bill 741 passed the Senate Financial Institutions Committee without opposition and now heads to the Senate floor for further consideration.