Governor Announces Sale of $140 Million in Illinois College Savings Bonds on October 15 -17

SPRINGFIELD -- Governor George H. Ryan today announced that Illinois College Savings Bonds with a maturity value of $140 million will be sold October 15-17, 2002, through brokers in more than 600 communities across Illinois.

"College Savings Bonds are tax-exempt, zero-coupon bonds, which the state offers as a long-term investment option for families saving for their children's college expenses," Ryan said.

"Since January 1988, the state has sold 11 issues of College Savings Bonds with a maturity value of more than $3.9 billion, helping thousands of Illinois families invest in their children's future."

Illinois College Savings Bonds are zero-coupon bonds. Individual bonds will be offered at prices that are estimated to range from $1,800 for a 22-year bond to $4,750 for a three-year bond, depending on market conditions at the time of the sale. The bonds are structured so that the initial investment plus the accrued interest equal $5,000 at maturity.

Illinois College Savings Bonds are exempt from federal and Illinois income taxes, and the purchase of up to $25,000 in bonds will not reduce eligibility for certain state assistance and loan programs.

Morgan Stanley is the senior underwriter for the sale. Other underwriters include A.G. Edwards and Sons, Inc.; Banc One Capital Markets, Inc.; Edward Jones; Fidelity Capital Markets; Harris Trust and Savings Bank; LaSalle Capital Markets; Merrill Lynch & Co.; Prudential Securities; RBC Dain Rauscher; and UBS PaineWebber Inc.

Illinois College Savings Bonds are available from these underwriters at their offices in more than 600 Illinois communities and also may be available from other brokerage firms. Orders must be placed through a broker during the three-day order period of October 15-17, 2002.

Persons who use bond payments to pay for higher education in Illinois may receive a bonus from the Illinois Student Assistance Commission. If the monies are used to fund higher education expenses at an Illinois college or university, the bonds at maturity pay a bonus ranging from about $60 to $440 per bond, depending on the maturity date.

For more information on Illinois College Savings Bonds, families may call, toll-free, 1-877-629-5430 or access information on the Internet through the State of Illinois home page at www.state.il.us.