Treasurer Frerichs introducing lower fees, mobile app for Bright Start 529 program

SPRINGFIELD, Ill. (WAND) — Illinois families participating in the Bright Start college savings program will soon have lower fees and easier access to their investments. Treasurer Michael Frerichs announced Thursday that he is preparing to launch a new mobile app to help people prepare for their future college students.

The Bright Start 529 is already among one of the lowest-cost savings programs in the country. Although, Frerichs said he wants to make it even better.

"A lot of these families here aren't full-time investment professionals," Frerichs said. "They don't want to sort through hundreds of different options. They want to know the options they have are good quality investments that are going to help grow their college savings without putting too much at risk."

Illinois families will pay 13% less in fees and gain access to low-cost high quality investments under the improved program. Frerichs is also working with TIAA Wealth Management to launch a mobile app for people to manage their account, check balances and open accounts for beneficiaries.

"I'm a millennial mom, so I'm on my computer," said Bright Start parent Dorlande Charles. "I use technology. My son does not have a tablet yet, but it's easier in terms of a transition for us to just go on the tablet, go on the computer, and it's easier to look at the growth over time of how much money we're pouring in. Or if we want to make any quick changes, it's actually a little bit easier not that it has been before."

The new Bright Start app will also allow people to send money directly to their colleges faster. Parents and guardians can soon claim their Illinois First Steps $50 deposit online when they open a Bright Start account without filling out paper forms.

"As a working mom, I'm always looking for something to ease my day," said Bright Start parent Amy O'Leary. "So I'm really excited for the technology that the Bright Start program is implementing, specifically the phone app."

The transition to the improved Bright Start program will occur from September 25-29.

Parents and guardians will need to re-establish their online account access and update their payroll instructions with employers. The Treasurer's office has already sent emails and notifications to explain these changes for participants.

"I don't spend a lot of time sitting down in front of my computer," Frerichs said. "I'm always on the go. My phone is the way I connect. For families like that, who want to be able to ask their family to participate in their children's education future, they can take this with them wherever they are."