Twenty-five dollars may not seem like a lot of money, but thosesmall investments over the years have helped the North Carolina'sNational College Savings Program's NC 529 Plans grow to more than$1 billion.

The program recently marked the milestone by giving kudos tothose who recognize the importance and advantages of highereducation, in terms of steady employment, increased earnings,improved health and family and community benefits over a lifetime,officials said.

Launched in December 2001 with $9.5 million in assets and 2,185active accounts rolled over from the state's original single-option529 college savings plan, North Carolina's college saving programincludes the NC 529 Plan, which offers multiple investment options,has grown steadily.

At $1 billion, there are 106,452 active accounts in the savingsprogram, 94% of which are owned by North Carolina residents,according to program officials.

As authorized by the General Assembly, the NC 529 Plan wasestablished and is maintained by the North Carolina State EducationAssistance Authority. The College Foundation Inc. administers theNC 529 Plan on behalf of the authority.

The steady growth of the program can be credited to the benefitsthat come along with it, said Steve Brooks, the authority'sexecutive director. Annual contributions to the NC 529 Plan of upto $2,500 for individuals and $5,000 for joint filers aredeductible from state tax income. The tax benefit is available tothe account owner who pays N.C. taxes, as well as any of thestate's other taxpayers, such as grandparents or others who chooseto make a NC 529 contribution as a holiday or birthday gift for afuture college student.

The account earnings are also free from federal and state taxesas long as college savings are used for qualified higher educationexpenses, such as tuition, room and board, books, fees and requiredequipment. Money in an NC 529 account can be used at almost anyfour-year or two-year college, in-state or out-of-state.

One of the contributors to the college savings program is the$25 billion State Employees' Credit Union in Raleigh, N.C. The others areVanguard and North Carolina's State Treasurer.

At the end of June, State Employees' had $40.7 million, 4%invested of the total,  in the NC 529 plans, Brooks said.While the credit union is not the largest contributor, he noted itsconsistent ability to fill a certain niche.

“When the recession hit, people wanted an insured account,”Brooks said. “State Employees' has done a good job keeping ratesfor the conservative investor.”

Bobby Hall, senior executive vice president for StateEmployees', agreed on who the credit union's option appeals to.

“It's another option for the ultra-conservative,” Hall said.“Our involvement is for our members who want to save for theeducation of their children in a regular, disciplined way overa long period of time instead of waiting until a child is 18 yearsold.”

Starting an NC 529 account requires as little as a $25investment, and contributions can be regularly made  orperiodic, based on financial situations and preferences, accordingto Shera Hube, vice president for marketing and savings for theCollege Foundation.

Brooks is looking forward to the NC 529 plans moving well beyondthe $1 billion mark.

“We're certainly glad to have it go that high but we want to seeit go higher. It's a moving target.”