State gets $3.5 million to dole out for college scholarships

By Jaclyn Brenning

Sun-Times, Chicago, IL

Published Monday, April 28, 2008

Illinois' Bright Start Savings, a state program helping families put away funds for children's college tuition, just got a little brighter.

State Treasurer Alexi Giannoulias will announce today $3.5 million in private scholarship funds, to be distributed among three dozen universities throughout the state over the next seven years.

"We are ecstatic about the Bright Start Scholarship Program," Giannoulias said. "This is a program that comes at zero cost to the state and taxpayers. It isn't going to cost taxpayers one dime."

Spokeswoman Kati Phillips said the treasurer's office will dole out $400,000 in scholarships to 12 public and 24 private universities annually.

The money comes from New York-based Oppenheimer Funds as part of its deal to manage funds for state college savings programs. Scholarships will range anywhere from $1,000 to $2,500 per student, depending on need, and could be awarded to as many as 400 students each year beginning this fall.

"All we are asking them to do is give the money to Illinois residents on a need-based scholarship, but they can figure out how they are going to do that," she said. "We are hoping this will help kids who fall just a little short of the money needed for college."

Phillips said the program has seen a complete turnaround since Oppenheimer took over as manager of the programs last summer. Bright Start is a 529 program, with tax-exempt investments. Families can withdraw funds for educational needs any time without being taxed. Ranking among the worst programs last year, Bright Start landed among the top five in 2008, according to an annual independent review released in April.

The savings program began in 2000 under then-treasurer Judy Baar Topinka. Funds were originally managed by the investment firm Legg Mason, but Oppenheimer took over in 2007.