What is the Harold Alfond College Challenge?
The Harold Alfond College Challenge is a new statewide program that gives a $500 grant to every Maine resident baby born on or after January 1, 2009 to start a college investing account with Maine’s NextGen College Investing Plan®. The Harold Alfond College Challenge Grant (Alfond Grant) is intended to help Maine families plan for education beyond high school.
Who is Harold Alfond?
Harold Alfond is the late business entrepreneur, founder of Dexter Shoe Company, and Maine philanthropist who established the Harold Alfond Foundation, the first private foundation in Maine, in 1950. He had a lifelong commitment to the people of Maine and was deeply committed to his charitable causes. He brought a business mindset to his philanthropy by partnering with organizations he felt were well run and had important missions, and by fostering teamwork and partnerships through his matching challenge grants. His giving focused on education and health care, especially programs for youth. The Harold Alfond College Challenge is his legacy gift to every Maine baby. For more information about Harold Alfond click here.
What is NextGen®?
NextGen is the name of the State of Maine’s college savings program (also known as a Section 529 plan). Section 529 refers to the section of the Internal Revenue Code that provides unique tax advantages and other special features to encourage families to save for college. (Just as some retirement plans are referred to as 401K plans, college savings programs, such as NextGen, are referred to as 529 plans.) The Finance Authority of Maine (FAME) is the Administrator of NextGen and contracts Merrill Lynch to be the NextGen Program Manager and underwriter.
Who can get an Alfond Grant?
- Maine resident babies born on or after January 1, 2009, including babies who are adopted by Maine parents or whose parents move to Maine before the baby’s first birthday.
- Anyone can open a NextGen account and be the account owner regardless of which state they live in. The account owner does not need to be the baby’s parent. However, the account owner must be at least 18 years old to open the NextGen account.
- Request an enrollment kit to open a NextGen account.
- A NextGen® account naming the baby as a beneficiary must be opened before the baby’s first birthday in order to receive the Alfond Grant.
- Only one Alfond Grant will be given to each baby. There are no family income limits to open a NextGen account. Nor are there any income limits to receive the Alfond Grant.
- Babies born at MaineGeneral Medical Center in Augusta and Waterville during the program’s 2008 pilot year are also eligible to receive the Alfond Grant. However, you must open the NextGen account prior to the baby’s first birthday.
Am I required to contribute money to the NextGen account in order to get my child’s Alfond Grant?
No. You do not have to make any contributions to open the NextGen account and receive the $500 Alfond Grant. It was Mr. Alfond’s hope that families, communities and businesses would rise to the challenge of investing in the future and educational aspirations of Maine’s children.
How does a family receive their baby’s $500 Alfond Grant?
In order to obtain the $500 Alfond Grant, you must submit a completed NextGen enrollment form. FAME will automatically apply the $500 Alfond Grant to the NextGen account only after the account is opened and an account number is assigned.
How do I get more information?
You can request that NextGen enrollment materials be mailed to you directly or download them by clicking here. You may make your request on-line or call FAME at 800.228.3734.
What if I have questions about how to complete the NextGen enrollment form?
For any questions, you can call FAME at 800.228.3734 or e-mail FAME at info@500forbaby.org. Workshops to assist people in completing the NextGen account enrollment form are also regularly scheduled throughout the State. Click here for the workshops on our NextGen calendar of events.
Does it have to be a parent who opens the NextGen account on behalf of his/her new baby?
No, the account owner does not need to be the baby’s parent. Anyone can open the NextGen account on behalf of the Maine resident baby. Simply complete and submit, to FAME, a NextGen® enrollment form naming the baby as the beneficiary. The account must be opened before the baby’s first birthday in order to receive the Alfond Grant. Anyone can open a NextGen account regardless of income or residency. The account owner must be at least 18 years old.
How will a family know that the NextGen account is opened and the Alfond Grant has been awarded?
The account owner can expect to receive two communications after submitting a completed NextGen enrollment form to FAME:
- A letter from Merrill Lynch, FAME’s Program Manager, providing the NextGen account number, will confirm that the account has been opened;
- A congratulatory award letter from FAME notifying you that the Alfond Grant has been applied to the NextGen account.
Can family members contribute money to the child’s NextGen account?
Yes. Parents, grandparents, family and friends can add money to grow the child’s NextGen account. Although additional contributions are not required, it was Mr. Alfond’s hope that families, communities and businesses would rise to the challenge of investing in the future and educational aspirations of Maine’s children. NextGen contribution coupons are available, making it easy for family and friends to make contributions into the NextGen account.
What can the Alfond Grant be used for?
The Alfond Grant, including any earnings on the grant funds, can only be used to pay for qualified higher education expenses at any U.S. accredited post-secondary school in the country, including graduate schools, trade schools, and some foreign institutions that participate in federal financial aid programs. The Alfond Grant must be used by the time the beneficiary is 28 years old.
Does the child have to attend college in Maine in order to use their Alfond Grant?
No. The Alfond Grant and any earnings can be used to pay for attendance at any U.S. accredited postsecondary school in the country including graduate schools, trade schools, and some foreign institutions that participate in federal financial aid programs. Your child can pursue a certificate program, as well as associate, bachelor, master, doctoral and professional degrees beyond high school.
Does the child have to attend a four-year college in order to use their Alfond Grant?
No, the Alfond Grant and any earnings can be used to pay for education beyond high school, including certificate programs, associate, bachelor, masters, doctoral and professional degrees. The grant can be used at any U.S. accredited post-secondary school in the country, including trade schools, graduate schools and some foreign institutions that participate in federal financial aid programs.
What happens to the Alfond Grant if the child doesn’t pursue education beyond high school?
The Alfond Grant, including any earnings on the grant funds, will be returned to the Alfond Scholarship Foundation once the beneficiary turns 28 years old if it has not been used for their education.
What about siblings and other children for whom I would like to start a college savings account?
Families with other children not eligible for the Alfond Grant can open other NextGen accounts and may be able to take advantage of other Maine NextGen special benefit programs which are offered by the Finance Authority of Maine (FAME). A one-time $200 Initial Matching Grant is available to income eligible Maine residents who open a NextGen account with a $50 initial contribution (who are not eligible for the Alfond Grant). FAME staff can answer your questions or provide you with more information about NextGen at 800.228.3734 or on-line at nextgen@famemaine.com.