#United States #Chicago #Morningstar #College Savings #Bright Start

Illinois' Bright Start College Savings Plan

Illinois State Treasurer, Michael Frerichs, has made headlines once again as he proudly announces the achievement of the 7th Gold rating for the state's Bright Start 529 College Savings Plan from independent analyst Morningstar. This prestigious recognition reinforces the reputation of Bright Start as one of America’s premier college savings options, promoting financial well-being for families across Illinois.

In his statement, Frerichs emphasized the importance of high-quality college savings plans for families: "To receive such accolade for the seventh consecutive year reaffirms from an independent evaluator that Illinois' 529 College Savings plans are a stellar investment for families. Our commitment has always been to ensure affordability and a diverse array of investment choices to help families prepare for their children’s education."

Morningstar’s annual assessment evaluates college savings plans based on several metrics, including investment quality, fees, and overall performance. Bright Start is one of only five plans nationwide to receive the Gold rating. In their review, Morningstar referred to the plan as a "Valedictorian" for its compelling investment options and cost-effectiveness, which stand out in a competitive field.

According to Morningstar, the plan offers a considerable variety of high-caliber investment choices across multiple asset management firms, unlike some comparable plans that limit options to a single provider. The adeptness of the state's investment team in regularly monitoring portfolio performance and negotiating advantageous terms for participants has also been acknowledged as a decisive factor behind this top-tier recognition.

In addition to Morningstar's Gold rating, Bright Start has garnered admiration from top financial publications, including Forbes, Business Insider, Kiplinger, and The Motley Fool, which have recognized it as one of the nation’s leading college savings plans. Furthermore, the advisor-guided Bright Directions plan also received an upgrade to a Bronze rating, establishing it as the only 529 plan in the country to improve its standing from the previous year.

Since taking office in 2015, Frerichs has been focused on enhancing both Bright Start and Bright Directions. Noteworthy initiatives include bolstering the investment options, slashing fees, and launching new tools for account holders. In 2025, Bright Directions lowered its fees and introduced an array of new user-friendly tools. Likewise, Bright Start updated its fee structure, optimized the investment lineup, and unveiled a new mobile app in 2024. Frerichs highlights the substantial savings achieved since he took office, with more than $100 million negotiated in fee reductions, allowing families to allocate more funds directly toward college savings.

The results of these efforts are evident in the exponential growth of Bright Start 529. As of September 30, 2025, over 500,000 accounts have been opened under this plan, and together with Bright Directions, Illinois boasts more than 900,000 college savings accounts, collectively holding approximately $23 billion in assets. Research conducted by the Center for Social Development at Washington University in St. Louis states that a child is three times more likely to attend college when they are aware of having a dedicated college savings account.

Frerichs' initiatives to enhance the quality of 529 programs are part of broader efforts to increase accessibility to higher education for Illinois families. The Bright Start and Bright Directions plans are designed to support tuition costs at accredited educational institutions, including colleges, technical schools, and apprenticeship programs, and provide tax benefits to Illinois taxpayers contributing to these plans.

To explore more about Illinois' 529 College Savings Programs, visit www.illinoistreasurer.gov and to read Morningstar’s full report, check their website. Opening an account is straightforward, and no minimum is required to start saving for your child's future education without delay. Through these initiatives, Treasurer Michael Frerichs exemplifies a commitment to investing in Illinois youth’s educational futures, rendering the state’s college savings plans beneficial for all families.