PART 2771 COLLEGE SAVINGS BOND BONUS INCENTIVE GRANT (BIG) PROGRAM : Sections Listing

TITLE 23: EDUCATION AND CULTURAL RESOURCES
SUBTITLE A: EDUCATION
CHAPTER XIX: ILLINOIS STUDENT ASSISTANCE COMMISSION
PART 2771 COLLEGE SAVINGS BOND BONUS INCENTIVE GRANT (BIG) PROGRAM


 

Section 2771.10 Summary and Purpose

 

a) The Baccalaureate Savings Act [110 ILCS 920/8] authorizes the sale of Illinois college savings bonds and provides for a grant program as an additional financial incentive to encourage the use of proceeds from matured bonds at Illinois colleges or universities.

 

b) This Part establishes rules which govern the Bonus Incentive Grant (BIG) Program. Additional rules and definitions are contained in General Provisions, 23 Ill. Adm. Code 2700.

 

c) The purpose of this Part is to establish the conditions and procedures for a bondholder to designate a student beneficiary as the recipient of a BIG and to outline the process by which a student beneficiary applies for and obtains this grant.

 

(Source: Amended at 22 Ill. Reg. 11035, effective July 1, 1998)

 

Section 2771.20 Applicant Eligibility

 

a) A bondholder shall:

 

1) be able to furnish documentation that demonstrates that he or she has continuously owned the Illinois college savings bonds for at least the 12 months preceding the date of maturity or, for Illinois college savings bonds with an original maturity date of less than 12 months, that he or she has owned the bonds for at least the six months preceding the date of maturity, unless the bonds were acquired by gift or under the laws of descent and distribution; and

 

2) use at least 70 percent of the bond proceeds for costs incident to enrollment that are reasonably incurred by the student beneficiary during an academic year, including tuition and fees, room and board, books and supplies, child care expenses, laundry, travel, and other personal expenses related to attendance at the eligible institution of higher learning.

 

b) A student beneficiary shall be:

 

1) designated by a bondholder as the recipient of a grant pursuant to this Part;

 

2) the beneficiary of at least 70 percent of the bond proceeds paid at maturity;

 

3) the beneficiary of not more than $25,000 worth of bond proceeds in any single academic year; and

 

4) enrolled or accepted for enrollment and registered for classes on at least a half-time basis at an eligible non-profit institution of higher learning that is not organized solely for the purpose of religious instruction.

 

(Source: Amended at 32 Ill. Reg. 10342, effective July 1, 2008)

 

Section 2771.30 Program Procedures

 

a) Application Procedures

 

1) Applications for a BIG shall be available from the Illinois Student Assistance Commission (ISAC) and eligible non-profit institutions of higher learning.

 

2) A complete application for BIG assistance shall include certifications from: the bondholder, the student beneficiary and the Registrar of the institution of higher learning at which the student beneficiary is enrolled or accepted for enrollment and registered for classes.

 

3) A bondholder or a student beneficiary must submit a BIG application no earlier than August 1 of the academic year for which assistance is being requested. Applications will be accepted until such time ISAC determines that all funds are committed or until May 30 of the academic year for which assistance is being requested, whichever is earlier.

 

4) All grants under this program are subject to sufficient annual appropriations by the General Assembly. If appropriations are insufficient to provide all qualified applicants with an award, available funds shall be allocated on the basis of the dates that the complete applications are received in ISAC's Deerfield office.

 

5) ISAC may require applicants to provide documentation verifying that the bondholder owned the bonds for the requisite length of time.

 

6) One student beneficiary may be designated for each bond redeemed. In cases in which two individuals jointly own a college savings bond, only one student beneficiary may be designated.

 

b) Application Certifications

 

1) The bondholder shall certify that:

 

A) the aggregate compound accreted value at maturity of the college savings bonds was not more than $25,000;

 

B) at least 70 percent of the proceeds of the college savings bonds have been or will be used for educational expenses incurred by the student beneficiary during an academic year;

 

C) the student named on the application has been designated as the beneficiary of the bond proceeds;

 

D) no other student has been designated as the student beneficiary for the same college savings bond;

 

E) the information provided on the application with regard to the bonds is true and correct, including the date on which the bonds were issued, the date on which the bonds were acquired and the date on which the bonds matured; and

 

F) the preceding certifications are being provided for the academic year in which the application is being submitted.

 

2) The student beneficiary shall certify that:

 

A) his or her address, Social Security Number and other identifying information is accurate;

 

B) at least 70% of the proceeds of the College Savings Bonds will be used for educational expenses;

 

C) he or she is enrolled or accepted for enrollment and registered for classes at an eligible non-profit institution of higher learning;

 

D) he or she will use the BIG proceeds to finance educational expenses that are reasonably incurred during an academic year, including tuition and fees, room and board, books and supplies, child care expenses, laundry, travel and other personal expenses related to attendance at the institution of higher learning; and

 

E) he or she will not use the BIG proceeds to finance costs incurred in an academic program of divinity for any religious denomination or in a course of study to become a minister, priest, rabbi or other professional in the field of religion.

 

c) The dollar value of the BIG shall be determined according to the Table of Grant Amounts (see Appendix A); provided, however, that:

 

1) the compound accreted value of the bonds shall not exceed $25,000 in any given academic year;

 

Example: A BIG could not be claimed for more than 5 bonds of $5,000 compound accreted value each in any given year. Even if 12 bonds of $5,000 compound accreted value each, or $60,000 total, had been purchased on behalf of a beneficiary, a BIG could be paid only for the first $25,000.

 

2) 70 percent of the compound accreted value of the bonds for which a BIG is being claimed in a given academic year does not exceed the beneficiary's cost of attendance at the institution of higher learning for that year.

 

Example: The beneficiary's cost of attending University A is $14,000. Since $14,000 is 70 percent of $20,000, a BIG could not be claimed for bonds with a compound accreted value in excess of $20,000. Even if 5 bonds of $5,000 compound accreted value each, or $25,000 total, had been purchased on behalf of the beneficiary, in this case a BIG could be paid only on the first $20,000.

 

d) Both the proceeds of the bonds and the BIG assistance must be used by the student beneficiary in the academic year in which the bond matures or in the academic year immediately following maturity.

 

(Source: Amended at 32 Ill. Reg. 10342, effective July 1, 2008)

 

Section 2771.40 Institutional Procedures

 

a) The institution shall certify that the student beneficiary is enrolled or accepted for enrollment and registered for classes at least half time.

 

b) BIG proceeds will be paid to institutions of record; however, proceeds may be remitted directly to the student beneficiary if the institution designates ISAC as its disbursing agent for this purpose.

 

(Source: Amended at 32 Ill. Reg. 10342, effective July 1, 2008)


Section 2771.APPENDIX A Table of Grant Amounts

 

GRANT AMOUNT PER $5000 COMPOUND

ACCRETED VALUE AT MATURITY

 

GRANT BOND MATURITY

(August 1)

1/88

Bond Sale

10/88

Bond Sale

11/89

Bond Sale

11/90

Bond Sale

9/91

Bond Sale

 

 

 

 

 

 

1991

$ 40

1992

$ 60

$ 40

1993

$100

$100

$ 80

$ 60

$ 40

1994

$120

$120

$100

$ 80

$ 60

1995

$140

$140

$120

$100

$ 80

1996

$160

$160

$140

$120

$100

1997

$180

$180

$160

$140

$120

1998

$200

$200

$180

$160

$140

1999

$220

$220

$200

$180

$160

2000

$240

$240

$220

$200

$180

2001

$260

$260

$240

$220

$200

2002

$280

$280

$260

$240

$220

2003

$300

$300

$280

$260

$240

2004

$320

$320

$300

$280

$260

2005

$340

$340

$320

$300

$280

2006

$360

$360

$340

$320

$300

2007

$380

$380

$360

$340

$320

2008

$400

$400

$380

$360

$340

2009

$400

$380

$360

2010

$420

$400

$380

2011

$420

$400

2012

$420

 


GRANT AMOUNT PER $5000 COMPOUND

ACCRETED VALUE AT MATURITY

 

GRANT BOND MATURITY

(August 1)

10/92

Bond Sale

10/93

Bond Sale

10/94

Bond Sale

11/97

Bond Sale

11/98

Bond Sale

 

 

 

 

 

 

1994

$ 40

1995

$ 60

$ 40

$ 15

1996

$ 80

$ 60

$ 40

1997

$100

$ 80

$ 60

1998

$120

$100

$ 80

1999

$140

$120

$100

2000

$160

$140

$120

2001

$180

$160

$140

$ 80

$ 60

2002

$200

$180

$160

$100

$ 80

2003

$220

$200

$180

$120

$100

2004

$240

$220

$200

$140

$120

2005

$260

$240

$220

$160

$140

2006

$280

$260

$240

$180

$160

2007

$300

$280

$260

$200

$180

2008

$320

$300

$280

$220

$200

2009

$340

$320

$300

$240

$220

2010

$360

$340

$320

$260

$240

2011

$380

$360

$340

$280

$260

2012

$400

$380

$360

$300

$280

2013

$420

$400

$380

$320

$300

2014

$420

$400

$340

$320

2015

$440

$420

$360

$340

2016

$440

$380

$360

2017

$400

$380

2018

$420

$400

2019

$440

$420

2020

$440

2021

2022

 


GRANT AMOUNT PER $5000 COMPOUND

ACCRETED VALUE AT MATURITY

 

GRANT BOND MATURITY

10/00

10/02

(August 1)

Bond Sale

Bond Sale

 

 

 

2002

$40

2003

$60

2004

$80

2005

$100

$60

2006

$120

$80

2007

$140

$100

2008

$160

$120

2009

$180

$140

2010

$200

$160

2011

$220

$180

2012

$240

$200

2013

$260

$220

2014

$280

$240

2015

$300

$260

2016

$320

$280

2017

$340

$300

2018

$360

$320

2019

$380

$340

2020

$400

$360

2021

$420

$380

2022

$440

$400

2023

$420

2024

$440

 

* If no grant amount is shown, there were no bonds sold at that maturity for that particular issue.

 

(Source: Amended at 27 Ill. Reg. 10417, effective July 1, 2003)