For more information about North Carolina's National College
Savings Program, please review the complete Program Description and
Enrollment Agreement available on this website or contact 800-600-3453
to request an enrollment kit that includes both. Before opening an
Account, or contributing funds to an existing Account, you should
carefully read and consider the Program Description, which includes
information on investment objectives, risks, charges,
expenses, and other important information.
North Carolina's National College Savings Program is a program
of the State of North Carolina, established and maintained by the
North Carolina State Education Assistance Authority (Authority) as a
qualified tuition program under federal tax law, and administered by
College Foundation, Inc. (CFI) Current Investment Options are offered by
the State Treasurer of North Carolina; State Employee's Credit Union (SECU)
and The Vanguard Group, Inc (Vanguard).
Check with your home state about tax or other benefits associated with investing
in its own qualified tuition plan. If you are a North Carolina taxpayer, you may
be eligible for a
state income tax deduction. Deduction Details
The features of a qualified tuition program are complex and
involve significant tax issues. The earnings portion of withdrawals
not used for qualified higher education expenses are subject to
federal income tax and a 10% federal penalty tax, as well as state and
local income taxes. The availability of tax benefits may be contingent
on meeting other requirements.
Accounts are not bank or credit union deposits and are not insured by
the Federal Deposit Insurance Corporation or the National Credit Union Administration (NCUA).
Neither the Contributions nor the earnings thereon invested in or allocated to a Program
Account are backed by the full faith and credit of the State of North Carolina or
guaranteed by the Authority, CFI, SECU, or Vanguard.
Notwithstanding the foregoing, contributions and
interest earned thereon allocated to the Federally-Insured Deposit Account Investment
Option are guaranteed by the State Employees' Credit Union and insured by the NCUA, which
is backed by full faith and credit of the United States Government.
The value of a
Participant's Account will fluctuate depending on the market conditions and the
performance of the Investment Option selected. You could lose money
by investing in the Program. Participants assume all responsibility for federal
and state tax consequences.