A proposal to establish a pre-paid tuition program in Illinois might help families prepare for future college expenses, although the plan could backfire unless the state provides enough money.

“A major concern about the program is whether it would be self-supporting,” said Jerry Augsburger, director of NIU’s Financial Aid Office.

Currently, there are two plans being investigated by the House of Representatives. Families might be able to pay in a one-time flat fee or they might pay on an annual installment plan for their child’s college tuition.

Although no details have been finalized, Helen Satterwaite, chairman for the Illinois House of Representatives Higher Education Committee, said factors such as the age of the child and the expected rate of inflation would be taken into account when calculating the rate of payment.

Current proposals from the General Assembly are very similar to a proposal approved by the state of Michigan, Augsburger said. “Under the Michigan plan, the state would fund the difference if the investment were not to match up to the guaranteed amount. It is my understanding that Illinois would do the same,” he said.

Sen. Patrick Welch, D-Peru, said he did not feel that the state should have to “bear the burden” of paying for families who have money for college. It is not the role of the government to act as a bank for the people, he said.

Augsburger said although he “recommends and encourages the idea of early planning for children to attend college,” he cautions that the program might “create a benefit for those families who already have a significant amount of discretionary resources.”

“If the system (pre-paid proposal) is not self-supporting, Illinois will be confronted with the unnecessary burden of using state funds to bail out a system contracted to provide a high return to families which are already relatively well off,” Augsburger said.