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Bright Start rewards program offers new way to save for college

Credit card gives cash rebates on all purchases; Members receive initial $25 in savings

January 2, 2008

Families enrolled in the Bright Start College Savings Program can now earn money toward their children’s college tuition whenever they go shopping with the new Bright Start Futuretrust MasterCard, Illinois State Treasurer Alexi Giannoulias announced today.

“This is like a frequent-flyer program geared toward families saving for college,” Giannoulias said. “Families can use the cash rewards they earn from the program as another source of college money without changing their spending habits. Buying essential items from clothes to appliances will defray the rising costs of college.”

The Bright Start Futuretrust MasterCard contributes a 1 percent cash rebate on the amount of every purchase to each card member’s Bright Start College Savings Program account. Bright Start is an Illinois-sponsored 529 plan that allows families to save and invest money tax free to pay for college expenses.

Card members who also buy goods and services at more than 550 merchant partners (consisting of online retailers, stores, catalogs and restaurants) will also earn additional rebates. The Futuretrust Preferred Merchant Network includes: Target (5 percent); Toys R Us (2 percent); Wal Mart (2 percent); Urban Outfitters (4 percent); Sears (4 percent); Lands’ End (5 percent); and Home Depot (2 percent). (These rebates are added to the 1 percent cash rebate.)

In addition, the Bright Start Futuretrust MasterCard is the only 529-linked credit card in the nation that earns immediate rewards for its card members. Futuretrust will deposit $25 into every credit card holder’s Bright Start account when they use the card for the first time.

Bright Start account owners can also tap into Futuretrust to generate significant savings for college through rebates on the purchase, sale, financing and refinancing of a home through participating mortgage/real estate partners. Account owners can also earn rebates when requesting quotes for auto insurance.

There is no cost to join, no annual fee and no limit to the rebates. The annual percentage rate on a Bright Start Futuretrust credit card ranges between 12.49 and 14.49 percent. Credit card users can also transfer their balances on existing credit cards at an APR of 0 percent for six months.

“A college education has never been more important or expensive,” Futuretrust founder Rebecca Matthias said. “For our children, getting a degree translates into greater earning power and better lives, and the Bright Start Futuretrust partnership can help.”

Futuretrust, a MasterCard-linked college savings program, offers similar 529-credit cards connected with college savings plans in Georgia and Kentucky.

The credit card rebates consumers receive are on top of Bright Start contributions made by parents, grandparents or others who open a Bright Start account or contribute to one on behalf of a child.

Giannoulias noted that parents, grandparents, other relatives and friends are eligible to apply for a Bright Start Futuretrust MasterCard and designate a Bright Start beneficiary of their choice to receive the rebate rewards.

Every purchase made by a Bright Start Futuretrust MasterCard member or anyone who is linked to the rebate program is tracked by Futuretrust. After a program participant generates $25 worth of rebates, the money is automatically swept into their Bright Start account on a quarterly basis.

As with any credit card, Giannoulias cautioned that consumers should use the Bright Start Futuretrust MasterCard responsibly and should not get one to achieve a higher level of spending.

“This credit card should not be used to incur more debt or as a substitute for a family’s obligation to save for a child’s higher education. It’s a supplement, not a replacement,” Giannoulias said. “But if you have a credit card that earns you airline miles, why not replace it with one that earns you money toward your child’s education.”

Bright Start account holders can earn rebates without signing up for the Bright Start Futuretrust MasterCard. They can simply use another major credit card to link to Futuretrust’s Merchant Partner Network and take advantage of the rebates whenever they use their credit card.

To apply for the Bright Start Future MasterCard, visit www.brightstartsavings.com and click on the credit card icon. For more information about the Futuretrust program, including a listing of merchant partners, visit www.futuretrust.com or call 1.888.TRUST.68

Bright Start is a $2.3 billion savings plan with more than 150,000 accounts which offers various investment options and customized saving plans. Bright Start enables families to save and earn tax-free interest on investments. Qualified withdrawals are made tax free and can be applied to a variety of college costs (including tuition, room and board, books, fees, etc.) at any accredited public or private college or university in the U.S. and selected institutions abroad. Illinois residents who invest in Bright Start qualify for a state-income tax deduction up to $10,000 annually. To learn more, visit www.brightstartsavings.com or call 1.877. 432.7444.