Thirteen years ago (2010), when our son was 5 years old, we thought College Illinois 529 Prepaid Tuition Program was the savior - if we buy 1 semester every year for 8 consecutive years, he'd be covered for college. Boy, we were wrong!
First year (2010), we bought 1 semester of University+ which costed ~$9.5K and after that we heard that College Illinois was underfunded so we redirected the rest of the investments to other 529 programs. Thirteen years later (2023 now), those other 529 investment funds had grown to more than double and they could be used for any universities in the U.S. without any fees or constrains.
As for the 1 semester fund that we purchased in 2010 with College Illinois, when we tried to withdraw in 2023 for using on our son's university - out of state, it was a nightmare. We submitted "Intent to enroll" as requested in the instruction and nothing happened - like a black hole. We called them 10+ times within 3 months - each time a different person picked up the phone and no one seemed to know what's going on. We tried to ask the university for help in pulling the fund from College Illinois. As soon as they heard College Illinois, they said we dealt with them in the past and couldn't help us. We granted an authorization for other 529 program to pull our funds from College Illinois, College Illinois blocked it. To make a long story short, after 5 months of calling, waiting, and frustrations, College Illinois finally released the 1 semester fund which they claimed to be worth... ~$8.3K (after 13 years later). We called back and asked them why our fund reduced from $9.5K to $8.3K? Their answer was... the market went down (when other 529's went up 100%+) and there are fees on top of it. We were shocked in disbelief... and asked them to provide the details that show the breakdown of fees, charges, etc. We received nothing to date but we're glad that we're able to get something out of them and the majority of our investments are not with College Illinois.
We were hesitant in posting negative comments. However, we know that there are lots of caring parents out there, who are in the same situation as we are, could learn from our experience. read more