In a continued effort to help parents and future college students save money for an education, the state again will offer its Illinois College Savings Bonds to the public, and a high demand is expected.

The annual cost of a college education has substantially risen over the past few years and the trend is expected to continue. The bonds were created by the state to encourage people to save for their children’s future education.

Education costs are expected to continue rising at a rate of eight percent per year, according to a recent study by Arthur Anderson & Company. The one-year cost of a public college is estimated to reach nearly $26,000 by the year 2009.

The bonds go on sale today and are scheduled to be sold until Friday, but the sale will end when the bonds sell out.

The bonds are not being sold on a first come, first serve basis, according to the First Chicago Investment Corporation. Names of interested purchasers will be put into a lottery and chosen after the number of available bonds have been requested. All bonds purchased must be paid for by Nov. 7.

The state first offered the bonds in January of 1988. The demand at that time was nearly three times the $93 million offered. In September, 1988, the state offered $225 million in bonds. The demand during that sale was nearly twice the number offered.

The bonds are sold as general obligation, investment grade, zero-coupon and are fully backed by the Illinois state government.

Although the bonds are tax-free, the bearer does not receive any interest until the bond reaches its full maturity. This can be from two to 21 years, depending on the bonds purchased.

The bonds are worth $5,000 each at maturity. A two-year bond will sell for $4,520 at 5.9 percent interest, and a 21-year bond will sell for $1,189 at 7.05 percent interest. The state also is making available a wide range of maturity periods.

The bonds can be puchased in either the parent’s or the child’s name. The person’s name listed on the bond will have full rights to it at maturity.