North Carolina’s National College Savings Program


ARHS offers employees the opportunity to save for a family members college education expenses with the convenience of regular payroll deduction.

Basic Program Summary

  • Anyone can open an account – parents, grandparents, other relatives, friends, even certain organizations can save toward someone’s college education.
  • You can open an account for a person of any age, even a newborn. You can even open an account for yourself.

Contribution Amount

  • A minimum semi-monthly contribution of $25 is required for each account that you open.

Investment Options

  • Select from a variety of investment options that cover a range of strategies, from conservative to aggressive.
  • Choose a mix to meet your own investment objectives, time remaining until college, and tolerance for risk.
  • The Internal Revenue Service (IRS) allows you to change your current investment mix once each calendar year or if the beneficiary of your savings account changes. You may change how your future contributions will be invested at any time.

A review of the Investment Options will help you understand the relative risks normally associated with each investment alternative. Complete descriptions of the investment philosophies are available in the Program Description at

Tax advantages

  • Account earnings grow tax-free. There are no federal taxes on earnings and, for North Carolina taxpayers, no state taxes on earnings either.
  • Residents of states other than North Carolina should check with a tax advisor.
  • 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 subjected 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.

Using your college savings

  • Use for college expenses at virtually any college anywhere.
  • Use for Qualified Higher Education Expenses, which include tuition, fees, room, board, books and supplies and equipment required for enrollment.
  • If there are assets left in your account when the beneficiary has completed college, you can designate a new related beneficiary of the account.

How to enroll

Contact Human Resources or visit for more information. Please note initial enrollment must be coordinated with Human Resources. Payroll authorization form required.

Click here for the documents you need to establish your account with CFNC. 

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