Governor Announces Sale of $140 Million in Illinois College Savings Bonds on October 2-4

SPRINGFIELD -- Governor George H. Ryan today announced that Illinois College Savings Bonds with a maturity value of $140 million will be sold October 2-4, 2000, 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 10 issues of College Savings Bonds with a maturity value of more than $3.8 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 $1,550 for a 22-year bond to $4,375 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.

PaineWebber Incorporated and First Union Securities Inc. are the senior underwriters for the sale. Other underwriters include A.G. Edwards & Sons, Inc.; Morgan Stanley Dean Witter; Merrill Lynch & Co.; Edward D. Jones & Co., L.P.; Harris Trust and Savings Bank; Fidelity Capital Markets; Banc One Capital Markets, Inc.; Dain Rauscher Incorporated; LaSalle Capital Markets; and Prudential Securities.

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 from October 2-4, 2000.

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, 1-888-377-4280 or access information on the Internet through the State of Illinois home page at www.state.il.us.