SPRINGFIELD – Legislation sponsored by State Senator Laura Ellman (D-Naperville) that would allow students to use 529 university savings accounts for other education-related purposes without additional taxation was passed by the General Assembly Thursday.
“This legislation would allow college savings plans to be used in more and more ways to reflect the realities of modern 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.
Additional goals related to education are:
1. To cover interest payments on the student’s eligible student loan, and
2. To cover the cost of fees, manuals, supplies and other materials necessary to participate in certain professional learning programs registered and certified with the Secretary of Labor.
“Every Illinois student, regardless of background, deserves a chance to succeed and decide their future,” said Ellman. “Expanding the way students can use this savings program gives them more options for the future.”
Bill 741 was passed by the Illinois Senate on Thursday.