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.  

When a college savings bond matures, investors have several options for presenting their bond for collection of 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 office of the Illinois State Treasurer in Springfield.

Frequently Asked Questions:

Where Do I Collect My Payment?

What Do I Need to Collect My Payment?

How Do I Claim the Bonus Incentive Grant?

Where Do I Collect My Payment?

This table indicates where investors can collect their payments when bonds come due. For any escheated bonds, please contact the State Treasurer’s Unclaimed Property Division at (217) 785-6998.

What Do I Need to Collect My Payment?

Three collection scenarios are listed below. If your circumstances are not addressed in this section, contact the Illinois State Treasurer's banking division at (866) 458-7327 or contact the paying agent directly at the telephone numbers listed above.

If the payee is the registered bond holder, the following documentation must be provided in order to receive payment:

1. Original certificate. Do not sign the back of it.
2. Properly completed W-9 form, which can be obtained from the IRS website at www.irs.gov. Learn how to complete the form here.

If the payee is not the registered bond holder, the following documentation must be provided in order to receive payment:

1. Original certificate must be signed by the registered bond holder(s) as it appears on the face of the certificate. Do not date it.
2. The signature(s) must be Medallion Stamp Guaranteed.
3. The endorsement must occur in the presence of the individual executing the Medallion Stamp Guarantee.
4. Properly completed W-9 form, which can be obtained from the IRS website at www.irs.gov. Learn how to complete the form here.
5. Payment instructions.

If the bond is registered as a custodian and the bondholder requests the payment be made to the minor given that they have reached the age of majority, the following documentation must be provided in order to receive payment:

1. Contact either the paying agent or Treasurer’s Office to determine whether or not age of majority has been reached. This is determined by age and registration type.
2. Original certificate must be signed by the minor as their name appears on the face of the certificate. Do not date it.
3. The signature must be Medallion Stamp Guaranteed.
4. The endorsement must occur in the presence of the individual executing the Medallion Stamp Guarantee.
5. Properly completed W-9 form, which can be obtained from the IRS website at www.irs.gov. Learn how to complete the form here.

The Illinois State Treasurer’s Office cannot answer any questions pertaining to the completion of income taxes regarding these bonds. You will need to contact a tax preparer, the IRS or the Department of Revenue in the state where you are filing taxes.

How Do I Claim the Bonus Incentive Grant?

Any questions regarding the Bonus Incentive Grant are to be directed to the:

Illinois Student Assistance Commission
(800) 899-4722
www.isac.org