Bright Start 529 Celebrates 25^th Anniversary With Record Growth

Published September 16, 2025

As Bright Start 529 turns 25, Illinois State Treasurer Michael Frerichs is announcing record asset growth to more than $14 billion for Illinois’ flagship 529 college savings plan.

The news comes as the Illinois State Treasurer’s Office kicks off College Savings Month, which falls in September. Sponsored and launched by the State of Illinois in the year 2000, the Bright Start 529 College Savings Plan is designed for higher education savings. Treasurer Frerichs also sponsors Bright Directions, a 529 plan for families who prefer to work with a financial advisor. Over the past 25 years, more than 250,000 students have used their IL 529 college savings funds to attend hundreds of universities, colleges, trade schools, vocational programs and apprenticeships.

Earning National Recognition as a Top-Rated 529 Plan

As of July 31, 2025, the plan had over 327,000 accounts with $14 billion assets under management. This year alone 22,000 accounts have been opened and account owners have contributed more nearly $800M dollars for college savings. The numbers speak for themselves.

The combined IL 529 College Savings plans count more than $22B in assets.

"Parents can sleep better at night knowing they're prepared to pay for future education when the time comes," Treasurer Frerichs said. "As a father of two toddlers, I know firsthand how long those sleepless nights can be. Bright Start 529 is how Illinois creates a college-going culture and helps Illinois families confidently plan for the future."

Throughout the years, Bright Start 529 has been recognized as a leader in the 529 industry. Morningstar, an investment research company, recently rated Bright Start 529 as a top choice for education savers today¹. CNBC.com called Bright Start 529 one of "the best college savings plan in the nation."² And Business Insider hailed Bright Start 529 as "a top-rated 529 plan."³

"As one of five gold-rated 529 plans," said Treasurer Frerichs, "Illinois families can invest in Bright Start 529 with confidence. Bright Start is one of the nation’s biggest and best 529 plans, and we plan to keep growing until all Illinois families are saving for their kids’ future educational expenses."

The Bright Start 529 Advantage

Bright Start 529 offers a variety of benefits:

• Unique tax advantages: Tax-deferred growth and 100% tax-free withdrawals for qualified expenses. Illinois taxpayers can also reduce their state taxable income by up to $20,000 per year when married and filing jointly or up to $10,000 when filing individually.
• Range of investment portfolios: Professionally managed investment portfolios to fit your life situation, risk tolerance, and savings goals.
• Flexible: Families can pay for a range of qualified higher educational expenses to eligible schools nationwide, or transfer funds to eligible beneficiaries.
• Low fees and expenses: Bright Start 529 is among the lowest cost 529 plans in the country, which can mean more money for college.

"We kept coming back to Bright Start given how well it's performed and its reputation. It's professionally managed, so we can trust that we don't need to watch it every day. The cost savings are great, and it's less expensive than other funds we researched." Marlén Cortez Morris⁴, Chicago, IL

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