College Savings Bond Payments

The Baccalaureate Savings Act (110 ILCS 920) provides for the sale of general obligation bonds designated as “College Savings Bonds,” to be issued pursuant to the General Obligation Bond Act (30 ILCS 330). The initial legislation authorized the governor to structure $500m of general obligation bonds as college savings bonds. Between the period of January 1988 and October 2002, a total of $2,111,800,000 in “College Savings Bonds” were sold. The bonds were issued by the State of Illinois to provide individuals with a long-term investment option, often used to fund college expenses. They are marketed as “zero-coupon” bonds, meaning that the investors pay a discounted price at the time of purchase, and do not receive principal and interest payments until the bonds reach maturity. These bonds are general obligations of the State of Illinois, secured by a pledge of its full faith and credit.  

It’s a “save now, use later” way to plan ahead for school costs—often bought years before a student starts college. When a college savings bond matures, investors have several options for redeeming it to collect the proceeds. Investors may either mail their bond directly to the paying agent listed below or to the Illinois State Treasurer’s office in Springfield. In addition, they may present the bond in person at the Illinois State Treasurer’s office in Springfield.

A college savings bond is a type of savings certificate that was sold to help families set aside money for a child’s education. This table indicates where investors can collect their payments when bonds come due. For any unclaimed bonds held by the state, please contact the State Treasurer’s Unclaimed Property Division at 217-785-6998.

Date of Issuance	Paying Agent	Mail-in	Walk-in
January 1988 November 1989 November 1990 September 1991 October 1992  Date Issuance January 1988 November 1989 November 1990 September 1991 October 1992	The Bank of New York Mellon Trust Company, N.A. 800-254-2826 Illinois State Treasurer’s Office – Banking Division 866-458-7327  Original Paying Agent FNB Chicago Independence Bank Chicago FNB Chicago Independence Bank Chicago FNB Chicago Independence Bank Chicago FNB Chicago Community Bank Lawndale Independence Bank Chicago FNB Chicago	The Bank of New York Mellon Trust Company, N.A. 2nd FL CT OPS SICB 111 Sanders Creek Pkwy East Syracuse, NY 13057	Illinois State Treasurer’s Office Banking Division 1 East Old State Capitol Plaza Springfield, IL 62701 Hrs: 8:00 am to 2:30 pm CST Checks will be payable on the next business day if you come between 2:30 and 4:00 pm.

Date of Issuance	Paying Agent	Mail-in (Registered Bonds)	Walk-in or Overnight Mail
US Bank Trust 111 Filmore Ave. St. Paul, MN 55107 Hrs: 8:00 am to 1:00 pm CST for receipt of payment same day. OR Illinois State Treasurer’s Office Banking Division 1 East Old State Capitol Plaza Springfield, IL 62701 Hrs: 8:00 am to 2:30 pm CST Checks will be payable on the next business day if you come between 2:30 and 4:00 pm.	US Bank 800-934-6802, Option 7 Illinois State Treasurer’s Office – Banking Division 866-458-7327  Original Paying Agent LaSalle National Bank Continental Bank Bank of America First Trust US Bank National City Bank National City Bank	US Bank Trust 111 Filmore Ave. St. Paul, MN 55107 Hrs: 8:00 am to 1:00 pm CST for receipt of payment same day. OR Illinois State Treasurer’s Office Banking Division 1 East Old State Capitol Plaza Springfield, IL 62701 Hrs: 8:00 am to 2:30 pm CST Checks will be payable on the next business day if you come between 2:30 and 4:00 pm.	US Bank Trust 111 Filmore Ave. St. Paul, MN 55107 Hrs: 8:00 am to 1:00 pm CST for receipt of payment same day. OR Illinois State Treasurer’s Office Banking Division 1 East Old State Capitol Plaza Springfield, IL 62701 Hrs: 8:00 am to 2:30 pm CST Checks will be payable on the next business day if you come between 2:30 and 4:00 pm.

 

College Savings Bond Collection Frequently Asked Questions

What can college savings bonds be used for?

When you buy a college savings bond, you’re essentially loaning money for a set period of time. Over time, the bond can earn value, and later you can cash it in to receive a payment. College savings bonds are meant to help pay for education-related costs, such as:

• College or university tuition
• Fees
• Books and supplies
• Other qualified education expenses (depending on the program rules)

What Do I Need to Collect My Payment?

There are three common ways to collect a College Savings Bond payment. If your situation isn’t listed below, call the Illinois State Treasurer’s Banking Division at 866-458-7327, or contact the paying agent using the phone numbers listed above.

If your name is on the bond (you are the registered bondholder)

You’ll need:

1. The original bond certificate (don’t sign the back.
2. A completed W-9 form (from the IRS website). W-9 instructions are linked here.

If your name is not on the bond (you are not the registered bondholder)

You’ll need:

1. The original bond certificate, signed by the person whose name is on the bond (sign exactly as it appears on the front). Do not date it.
2. A Medallion Signature Guarantee (a special stamp that verifies the signature).
3. The person signing must sign in front of the person giving the Medallion Signature Guarantee.
4. A completed W-9 form (from the IRS website). W-9 instructions are linked here.
5. Payment instructions (where/how the payment should be sent).

If the college savings bond has a custodian, and the payment should go to the child (now an adult)

You’ll need:

1. First, call the paying agent or the Treasurer’s Office at 866-458-7327 to confirm the person has reached the age of majority (this depends on age and how the bond is registered).
2. The original bond certificate, signed by the child (now an adult) using the name shown on the front. Do not date it.
3. A Medallion Signature Guarantee.
4. The person signing must sign in front of the person giving the Medallion Signature Guarantee.
5. A completed W-9 form (from the IRS website). W-9 instructions are linked here.

Can the Treasurer’s Office help me with the tax questions for bond payments? No. The Illinois State Treasurer’s Office can’t provide tax advice for College Savings Bond payments. For tax guidance, contact a tax professional, the IRS, or the Department of Revenue in the state where you file your taxes.