Bright Start vs. Bright Directions: 5 Key Differences Illinois Parents Can’t Ignore

Two Illinois 529 plans—Bright Start and Bright Directions—hold roughly USD 23 billion for about 900 000 future students, yet many parents still guess which one fits their saving style.

Both plans offer the same Illinois tax deduction and federal tax-free growth. The real difference is how you enroll: Bright Start lets you open an account online in minutes, while Bright Directions routes you through a financial advisor, affecting both fees and control.

If you already know the basics, feel free to skip ahead to our step-by-step 529 setup guide. Otherwise, read on for five differences you can’t ignore.

1. Enrollment and guidance: direct-sold vs. advisor-sold

Bright Start: self-serve in minutes

Two ways to open an Illinois 529: self-serve online with Bright Start or advisor-guided enrollment with Bright Directions.

You can open a Bright Start 529 entirely online or through its ReadySave 529 app in just minutes, according to the plan’s website. The plan’s own steps to open a 529 college savings plan confirm that you simply enter owner and beneficiary details, pick a portfolio, and you are done: no paperwork to mail, no sales meeting, and no minimum contribution.

Bright Directions: advisor-assisted

Bright Directions begins with “contact your financial advisor” and ends with “submit the claim form” together. In practical terms, an investment professional completes the paperwork and guides every initial choice.

Why it matters

• Speed and control: DIY signup often takes less than a coffee break, while advisor enrollment depends on your planner’s calendar.
• Cost signal: Requiring an advisor hints at the extra fees discussed in Difference 2.
• First Steps bonus: Bright Start lets parents claim the USD 50 newborn deposit during the same online session, while Bright Directions asks you to file a separate claim through the advisor portal.

Because Illinois ties the Illinois First Steps USD 50 seed deposit to your enrollment path, the choice also affects how and when you claim that money.

According to Bright Start 529’s Illinois First Steps overview, parents of children born or adopted on or after January 1, 2023 can claim the USD 50 online during Bright Start enrollment any time before the child’s 10th birthday, while Bright Directions families usually complete a separate claim through an advisor.

Ask yourself which feels easier on a hectic weekday: clicking “open account” or booking a meeting. Your answer shapes every interaction you’ll have with your child’s college fund.

2. Fees and costs: what you’ll pay

Fees look small, yet over 18 years they can erase a semester of tuition.

Even a 1% difference in annual fees can trim roughly $17,000 from an 18-year 529 college savings balance.

Bright Start: 0.10 percent all in

Its age-based index portfolios carry a total annual asset-based fee of about 0.10 percent, and you pay no sales loads, monthly maintenance charges, or paper-statement fees when you choose e-delivery.

Bright Directions: advisor fees on top

• Base cost: 0.125 percent program fee plus 0.025 percent state fee, or 0.15 percent before underlying fund expenses, according to the plan’s fee schedule.
• Share-class choice: working with an advisor can add an initial sales charge (often up to about five percent of each contribution) or an ongoing servicing fee.
• Paper statements cost USD 12 per year unless you switch to digital delivery.

Why it adds up

Invest USD 50 000 at a six-percent return from birth to freshman year. Paying one extra percentage point each year trims roughly USD 17 000 from the future balance—money that could cover nearly half a year of in-state tuition.

In short, Bright Start keeps more of your contribution in the market. Bright Directions asks you to trade some growth for professional guidance. Decide whether that advice is worth the price before you write the first check.

3. Investment options and flexibility

Both plans glide from stocks to bonds as college nears, yet the menus differ in size and who builds the recipe.

Bright Start: lean and preset

• Three age-based enrollment-year tracks and six static portfolios, all built with low-cost index funds from firms such as Vanguard and BlackRock.
• You choose once, set contributions, and the portfolio rebalances automatically—ideal for set-it-and-forget-it savers.

Bright Directions: wide and advisor guided

• Four age-based models, two enrollment-year tracks, four static options, plus dozens of individual fund portfolios and ETF sleeves from managers such as T. Rowe Price, Dodge & Cox, and DFA.
• With an advisor, you can tilt toward specific sectors (real estate, inflation-protected bonds, international small-cap) or build a bespoke mix.

Does more choice help performance?

Morningstar’s 2025 report shows the two plans’ age-based composites delivered similar five-year returns once Bright Directions’ higher fees are deducted. Outcome is a tie; complexity is the difference.

If you like digging into fund sheets with professional guidance, Bright Directions offers a playground. If you prefer to queue up an age-based portfolio and stream a show, Bright Start keeps college savings in the background with no rebalancing reminders.

4. Reputation, ratings, and track record

Independent analysts keep score so you don’t have to. Morningstar’s 2025 review placed Illinois’ two plans on different steps of the podium.

Bright Start: Gold for the seventh year running

Morningstar again named Bright Start one of only five Gold 529 plans nationwide, praising its “compelling, low-cost investment options and strong state oversight,” according to a 2025 press release from the Illinois state treasurer.

Bright Directions: Bronze and rising

The same report upgraded the advisor-sold plan to Bronze, noting fee cuts and menu improvements but still citing higher costs than its direct sibling.

Gold signals top-tier stewardship across Morningstar’s four pillars: Process, People, Parent, and Price. Bronze is respectable for an advisor channel, though two rungs lower largely because of price.

The grades cap a comeback story. Bright Start endured a headline loss in 2008, replaced managers, and slashed expenses; the Gold streak confirms the fix. Bright Directions never stumbled publicly, yet its costs have kept it out of the top tier despite steady Silver or Bronze marks over the past decade.

Outside validation favors Bright Start, but both plans now sit above “Neutral,” giving Illinois families two independently endorsed choices.

5. Everyday experience and ongoing management

Bright Start: app-first control

A 2024 overhaul introduced the ReadySave 529 mobile app, letting account owners adjust contributions, view performance, and request withdrawals in “two taps,” according to the release notes. Online chat, a searchable help center, and a toll-free line (877-432-7444, weekdays 7 a.m.–7 p.m. CT) provide human backup.

With Bright Start’s app-first tools, you can tweak 529 contributions from your couch instead of waiting on an advisor’s schedule.

Bright Directions: advisor gatekeeper

Account owners can view balances through a new web portal, but most changes—such as portfolio shifts or beneficiary updates—route through the financial advisor listed on the account. Phone service (866-722-7283, weekdays 7 a.m.–6 p.m. CT) supports that advisor access.

Shared tools

• Ugift and other e-gifting links let relatives contribute to either plan.
• Both plans can send funds directly to a school’s bursar, streamlining tuition payments.

Bottom line

Bright Start feels friction-free for midnight tweaks from your phone, while Bright Directions keeps an advisor as the primary button-pusher for families who prefer real-time counsel.

Bright Start vs. Bright Directions: quick pros and cons

Bright Start

Pros

• Lowest published expense ratio: age-based index portfolios cost about 0.10 percent a year.
• Open an account online or in the ReadySave 529 app in minutes; no advisor required.
• Earned Morningstar’s Gold rating for the seventh straight year in 2025.

Cons

• No dedicated financial-advisor guidance; you select and monitor the portfolio.
• DIY rebalancing discipline is up to you, although age-based tracks automate most shifts.

Bright Directions

Pros

• Advisor can tailor allocations and integrate the 529 with your broader plan.
• Broader menu: more than 30 single-fund portfolios, plus age-based tracks.
• Bronze rated by Morningstar in 2025 after fee cuts—solid for an advisor-sold option.

Cons

• Up-front sales charge up to about five percent and higher ongoing fees reduce net return.
• Many changes, such as investment switches or withdrawals, go through your advisor, adding time.
• Paper statements cost an extra USD 12 per year unless you opt for e-delivery.

Conclusion

Bright Start fits hands-on savers who prize low cost. If you manage your 401(k) online, you’ll appreciate the two-minute enrollment, 0.10 percent expense ratio, and auto-deposit tools that let every spare dollar grow.

Bright Directions appeals when personalized guidance outweighs fee drag. Families handling trusts, multiple children, or business income often want an advisor who already sees the full picture: asset location, tax timing, and financial-aid impact. The trade-off is cost. A five-percent sales charge on a USD 50 000 newborn deposit removes about USD 2 500 on day one, yet many parents consider that the price of expert oversight.

Timeline matters. An 18-year runway magnifies Bright Start’s thrift, while a five-year sprint before college narrows the dollar gap and makes advisor help feel more reasonable.

Federal rules allow one tax-free rollover per beneficiary every 12 months, so today’s choice is not permanent. Balance any front-end load already paid before switching.

Pick the lane that fits your comfort level now, and focus on the bigger mission: funding dreams instead of future debt.

Frequently asked questions

Do both plans offer the same Illinois tax deduction?

Yes. Illinois taxpayers can deduct up to USD 10 000 in annual contributions (USD 20 000 for joint filers) to either Bright Start or Bright Directions, according to the Illinois Lieutenant Governor’s office.

Can I switch plans later?

You can make one tax-free rollover per beneficiary every 12 months under federal law. Ensure any front-end sales charge paid in Bright Directions has had time to amortize before moving.

Is there any reason to hold both plans at once?

It is permitted. Some families split savings—for example, parents in Bright Start and grandparents in Bright Directions—yet most prefer one account for simplicity.

What happens if my child skips college or I overfund the 529?

You can change the beneficiary within the family, or roll up to USD 35 000 into that beneficiary’s Roth IRA after the account has been open 15 years, subject to the annual IRA contribution limit.

I live outside Illinois. Should I still look at these plans?

Often. Compare your home-state plan first; if it offers no tax break or charges higher fees, Bright Start’s low costs or Bright Directions’ advisor option can still be attractive, though you would forfeit an Illinois deduction.

Will Bright Directions outperform because an advisor picks funds?

Unlikely. Morningstar and academic studies show low costs are the best predictor of higher net returns. Pay for Bright Directions only if you value ongoing advice more than the extra fee drag.

Is there a newborn incentive?

Yes. Illinois’ First Steps program provides infants born on or after January 1, 2023 with a USD 50 seed deposit once a 529 is opened and claimed—easiest online in Bright Start or through your advisor in Bright Directions.