College Illinois Program Stops Selling New Contracts

The state of Illinois' billion-dollar prepaid college tuition program has stopped selling new contracts at the same time a new study found the fund has a 30 percent shortfall.

Crain's Chicago Business reports that fund administrator Kym Hubbard says the Illinois Student Assistance Commission plans to give the governor and lawmakers comprehensive recommendations on fixing the $1.1 billion College Illinois program. That should happen early next year.

A study from March of this year found the 30 percent shortfall in the program. That's the same shortfall found in June 2010, but the new report incorporates lower forecasts on investment returns.

More than 30,000 Illinois families hold contracts in College Illinois, which lets parents lock in tuition costs at public universities years before students go to college.