Illinois Treasurer Michael Frerichs Announces Eighth Gold Rating for Bright Start 529 Plan

Bright Start 529 Achieves Eighth Gold Rating

Illinois State Treasurer Michael Frerichs recently announced a significant milestone for the Bright Start 529 College Savings Plan. The plan has proudly earned its eighth Gold rating from the independent investment research firm, Morningstar. This achievement once again solidifies Bright Start 529's status as one of the top college savings plans in the nation.

Since its inception, the Bright Start 529 plan has aimed to provide families with a reliable and effective way to save for their children's higher education. As one of only nine college savings plans nationwide to receive a Gold rating, it stands out for its commitment to quality and affordability. “For the eighth time under my watch, Morningstar has recognized Bright Start 529 as one of the nation’s best college savings plans,” Frerichs stated. This independent assessment underscores the importance of accessible education savings.options for Illinois families.

Morningstar’s rigorous evaluation process considers key factors such as the plan’s investment options, management quality, cost efficiency, and overall value to investors. Bright Start 529 received high marks across all categories, demonstrating a strong commitment to supporting families through various economic challenges, including rising college costs.

Frerichs emphasized the urgency of such initiatives in the context of today's economic landscape: “As college costs continue to rise, we remain dedicated to making it easier for families to plan, save, and invest in their children's future.” Through his leadership, over $250 million in fee reductions have been negotiated for Illinois 529 investors since 2015, further emphasizing a commitment to low-cost, high-quality education saving.

In its assessment, Morningstar highlighted Bright Start 529’s excellent investment menu and robust oversight from the state, which contributes significantly to the plan’s overall value. They commended the Illinois State Treasurer’s Office for diligently advocating for savers and ensuring the plan’s features align with families' needs. The plan’s structured investment glide paths effectively manage risk as students approach college, balancing equity and interest rates to provide assurance to families.

The increasing importance of college savings accounts cannot be understated. Research indicates that children are three times more likely to attend college if they have a dedicated college savings account. Frerichs noted, “Saving even modest amounts over time can make a meaningful difference for a child's future.” The Bright Start 529 program serves as a practical and flexible tool for families planning for qualified education expenses.

In addition to the Gold rating for Bright Start 529, Morningstar also awarded its Bronze rating to Bright Directions 529, Illinois' advisor-guided college savings plan. Bright Directions offers a high-quality investment menu and strong state oversight, proving valuable for families who seek advisor-assisted guidance in their educational savings. Under Frerichs, Bright Directions has received multiple accolades, including five Silver and four Bronze ratings, reflecting its credibility in the education savings landscape.

Bright Start 529 has seen continuous growth, reaching over 550,000 accounts as of September 30, 2026. Together with Bright Directions, these plans manage approximately $25 billion in assets for nearly one million Illinois families. This growth is a testament to the trust families place in programs designed to empower them financially as they invest in their children's futures.

For families considering a Bright Start 529 account, there is no minimum contribution required to open an account, ensuring that saving for college is accessible to all. Contributions may be used for educational expenses at eligible colleges, universities, trade schools, and apprenticeship programs, with tax-free growth for qualifying expenses. Illinois taxpayers might also benefit from state income tax deductions when contributing to the plan.

To learn more about Bright Start and how it can help prepare for your child's educational future, visit BrightStart.com. This ongoing commitment to educational savings and financial wellness reflects the Illinois State Treasurer's Office mission of fostering economic growth and prosperity for all Illinois residents.