States are spearheading the initiative to face student debt head on as they encourage families to begin saving for the next generation now by taking advantage of 529 plans across the nation. The College Foundation of North Carolina (CFNC) and NC 529 are proud to join this coalition to help set up future generations for success.
In an effort to bring further attention to the 529 plan, a national campaign of 27 states will launch this month. This initiative will mark the first time that state plans have joined forces in a national campaign. The hope of the campaign is to build greater recognition of the 529 Plan among Americans and help them develop a true understanding of this important way to save for education.
“I’d love to bring more awareness the NC 529 Plan because it’s such a great way to save for school,” said Laura Morgan, Vice President of Communications, Savings, & Legal Affairs for College Foundation, Inc. “We are especially happy to be working with other states to bring more attention to 529 Plans. Together, we can help more Americans save for college.”
The NC 529 Plan is a tax-advantaged investment vehicle designed to help make saving for college easier for families. A 529 plan is not like a traditional savings account that a parent might open with a bank. Contributions to an NC 529 Account are invested, giving the funds an opportunity to increase with earnings over time.
Another added benefit of the NC 529 Plan is that earnings on contributions are free from state and federal taxes when the funds are used to pay for qualified education expenses. Despite the many advantages of a 529 Account, it’s estimated that more than 60 percent of people are unfamiliar with the college savings option.
The affordability of the NC 529 Plan, when combined with the opportunity for investment earnings, as well as tax benefits, makes it an attractive option to those who recognize it. The NC 529 Plan is working hard, with 26 other state plans, to make sure that more families know.