SPRINGFIELD – Legislation sponsored by State Senator Laura Ellman (D-Naperville) that would allow students to use 529 college savings accounts for other education-related purposes without additional taxation passed the General Assembly on Thursday, May 27.
“This legislation would allow college savings plans to be used in more ways to reflect the realities of modern-day higher education,” Ellman said. “Students need and should be able to use their savings plans to pay for loans or job-training programs.”
The legislation 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:
- To cover 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 student in Illinois, regardless of background, deserves a chance to succeed and decide their future,” Ellman said. “Expanding how students can use this savings program provides them with more options for the future.”
House Bill 741 passed the Illinois Senate on Thursday, May 27.
