5/29 is a Good Day to Review NC 529 College Savings Plan

RALEIGH, N.C., May 27 /PRNewswire-USNewswire/ -- College Foundation of North Carolina (CFNC) suggests you take a few minutes to think about saving for college on May 29.  

Why May 29?  CFNC, in conjunction with College Savings Plan Network, the national association that advocates for 529 college savings plans, is encouraging parents, grandparents and students to use 5/29 as a trigger to think about opening or adding to a 529 Plan account.  

Contributions to the NC 529 Plan of up to $2,500 ($5,000 for joint filers) a year are tax deductible for North Carolina taxpayers.  Earnings in the NC 529 Plan also grow free from federal and NC income tax, and are not taxed by North Carolina or the federal government upon withdrawal as long as the money is used to pay for the account beneficiary's qualified higher education expenses.

Money saved in the NC 529 Plan can be used for any eligible school in-state or out-of-state, including two- and four-year colleges, graduate schools and vocational and technical schools.  The minimum initial contribution as well as any subsequent contribution is just $25 and there are 14 investment options from which to choose.  Enrollment is easy and can be completed online or via a paper form.  Online access to account information makes reviewing and maintaining an account simple too.

As of the end of April 2010, 48,691 participants had more than $600 million invested in the NC 529 Plan. The number of accounts has grown by 21% over the same time last year.  More than 200 North Carolina employers now offer the opportunity to contribute to the NC 529 plan via payroll deduction.  For more information on North Carolina's National College Savings Program, call 800.600.3453 toll free or visit www.CFNC.org/NC529.

About CFNC

College Foundation of North Carolina (CFNC) is a free service of the State of North Carolina that helps students plan, apply, and pay for college. CFNC is a partnership of Pathways, the N.C. State Education Assistance Authority, and College Foundation, Inc.  

• Pathways, created by the N.C. General Assembly in 1999, is a state-wide initiative to increase the college-going rate of North Carolinians by providing: comprehensive college and career planning resources; electronic applications and transcripts accepted by all 110 North Carolina colleges and universities; and, information on student financial aid and college affordability. Pathways is administered by The University of North Carolina General Administration in collaboration with the N.C. Department of Public Instruction, the N.C. Community College System, and the N.C. Independent Colleges and Universities.

• The North Carolina State Education Assistance Authority (NCSEAA), established in 1965, is the State agency that promotes access to higher education by administering financial aid and savings programs, informing students and families about paying for college, teaching educators about financial aid administration, and advocating for resources to support students.

• College Foundation, Inc. (CFI), a nonprofit corporation serving North Carolina students and families since 1955, administers a portfolio of more than $4 billion, including low-interest federal education loans, the State's college grant programs, and the 529 college savings program on behalf of the N.C. State Education Assistance Authority. CFI also delivers information to North Carolina students and families about paying for college and provides technology services for CFNC.org.

CFNC offers resources toll-free at 1-866-866-CFNC and at CFNC.org.

SOURCE College Foundation of North Carolina