College Illinois! May need state bailout

By WEEK Producer

February 9, 2012 Updated Feb 10, 2012 at 11:10 AM CDT

SPRINGFIELD, Ill. -- One way young people pay for college in Illinois has been put on hold and could be another program looking for a bailout from the Illinois General Assembly.

College Illinois! allows people to pay for tuition and mandatory fees at universities and community colleges years in advance at a lower cost.

The money people contribute is invested and the return on the investments is supposed to cover tuition and fee inflation.

But College Illinois! stopped accepting new contracts in September after reports of risky investments and funding shortfalls.

As it turns out, College Illinois! is $560,000,000 short of being fully funded.

John Sinsheimer, head of the commission which administers College Illinois!, wants account holders, state employees and legislators to figure out how to make it financially sound.

But the state is under no obligation to help, and College Illinois! remains under investigation by the Auditor General's office.

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