Recent News Posts

Fort Fairfield has a new program that will provide any new resident of Fort Fairfield born after July 1, 2011, with a $250 scholarship grant in a NextGen account. The program also will offer any child entering kindergarten at the Fort Fairfield Elementary School beginning with the 2011-2012 school year with a $50 scholarship grant to be deposited in a NextGen account. 

http://bangordailynews.com/2011/10/18/news/aroostook/fort-fairfield-to-give-children-head-start-on-saving-for-college/?ref=latest 

http://www.wagmtv.com/newssource8/story/2011-10-18-fort-kids-first

The Harold Alfond Challenge has now issued 10,000 grants of $500 to Maine newborns whose parents create a college saving fund.

September 26, 2011 Reported by Irwin Gratz The Harold Alfond College Challenge has now issued 10,000 grants of $500 to Maine newborns whose parents create a college savings fund. This past summer, a ten-thousandth Maine newborn received 500-dollars for college. The money comes from the Harold Alfond College challenge and is available to every baby born in Maine. Elizabeth Vanderweide, the program manager for the Alfond College challenge and financial adviser Kevin Monroe of Modern Woodmen of America, sat down with Irwin Gratz to talk about the program and how parents should approach saving for college in these tight economic times.

http://www.mpbn.net/Home/tabid/36/ctl/ViewItem/mid/3478/ItemId/18175/Default.aspx 

WCSH-6 TV's Jackie Ward interviews program manager Elizabeth Vanderweide on Friday, September 16, 2011.

http://www.wcsh6.com/news/article/172990/2/Its-never-too-early-to-start-saving-for-college 

County-by-County Data Shows Aroostook, Cumberland, Hancock, Kennebec, Lincoln, Penobscot, Sagadahoc and York Counties Performing Above the State Median Grant Enrollment Rate

PORTLAND, Maine ¾ August 30, 2011 ¾ Since 2008, the Finance Authority of Maine (FAME) and the Alfond Scholarship Foundation (ASF) have worked together to enroll over 10,000 Maine babies in the Harold Alfond College Challenge (HACC). ASF has contributed more than $5 million to Maine resident babies’ college investing accounts. The program’s goal is to award every eligible Maine baby a $500 grant to start investing early for higher education in the NextGen College Investing Plan (NextGen). NextGen is Maine’s Section 529 Plan. The grant funds may be used to pay for qualified higher-education expenses at any accredited post-secondary school, including four-year and two-year public and private colleges, certificate programs, trade schools, and even graduate schools. Families just need to enroll their child in the program by the baby’s first birthday.

FAME and ASF recently evaluated enrollment rates on a county-by-county basis and conducted a statewide parent survey to better understand awareness levels and why families choose to enroll or not. There are no income requirements and families never need to add their own money (although they are encouraged to invest in their own child’s future).  Since the statewide launch in 2009, 36.5 percent of all eligible babies born from January 1, 2009, to July 31, 2010 were enrolled before their first birthday deadline.

This year’s county-by county enrollment report revealed that, as anticipated, the urban, more densely populated areas in Cumberland, Kennebec, Penobscot and York Counties have stronger enrollment rates. U.S. Census Bureau data shows these areas typically have higher income rates and greater numbers of individuals who have attended college (source: http://quickfacts.census.gov/qfd/states/23000.html). But communities don’t need higher income levels and education attainment levels to succeed; community dedication and family aspirations can increase the rate at which babies are enrolled.  

“We were pleased to see Aroostook County with the fifth-highest enrollment rate,” said Elizabeth Vanderweide, program manager for the Harold Alfond College Challenge.  “Aroostook County is extremely rural with average household income averaging the second-lowest in the state according to U.S. Census Bureau data. That same data also shows that fewer than 16 percent of all adults in Aroostook County have a bachelor’s degree, the third-lowest ranked county in the state. These statistics demonstrate that community efforts are working well in Northern Maine and across the state. We’ve found that parents, no matter their socio-economic status, want to do right by their children by giving them the opportunity to attend college.”

Westbrook parent Trish Nkruman, a hairstylist, has enrolled both of her children — Andrew and Abigail - to receive the $500 grant. She had this to say about the $500 grant opportunity:

“It’s important to me that my kids receive a good education. I want them to have a bright future and higher education opportunities. I just want my kids to go and do whatever they want to do, and not have any trouble when it comes to their futures. Anything like this is a great help. I don’t want my kids to struggle, so I’ll struggle for them now and when they get there it might be easier.

“I mention this program to a lot of my customers and they are often confused and think it is too good to be true and believe they have to put their own money in. I tell them no, I don’t have to put my own money in, it’s not required.”

Efforts to Raise Awareness and Enroll Every Eligible Maine Baby Continue with Local Hospitals and Events Playing a Key Role

FAME and ASF wanted to learn more about what motivates parents to enroll and why some parents who are aware of the program choose not to enroll.  A statewide survey of parents was conducted and received 648 responses. The results show that awareness among parents who have never inquired about the program has grown to 75 percent.  The research also demonstrates that 80 percent of all families believe that children born now will need at least a bachelor’s degree to be “successful” in their future careers.

The Maine medical community, particularly hospitals, has played a significant role in helping to raise awareness for the grant program. All Maine hospitals with birthing centers have championed the HACC and make the grant program part of the education process with new parents. FAME tracks hospitals’ progress on informing families about the program by counting parent inquiries and enrollments of eligible babies per hospitals’ births, and shares this data with the hospitals. According to parents surveyed, 54 percent learned about the program through their hospital, 29 percent through their doctor’s office, and 27 percent through friends and family.

In Portland, both Mercy Hospital and Maine Medical Center have created best practices to help increase program awareness. Mercy Hospital currently has the highest enrollment rate in the state. Linda Higgins, childbirth education coordinator, and champion of the program at Mercy, believes the hospital’s success is due in large part to the education model it has developed to help parents understand the value of the Harold Alfond College Challenge grant.

“We have one individual — Sally Heath — in our medical records department dedicated to educating new parents about the grant program. During her meetings with parents to review and complete important paperwork for the baby, she takes a few minutes to tell them about the Alfond grant opportunity for college investing. I believe it is her consistent and personal attention that makes our education effort for the program so strong, and the reason why we’ve been so successful encouraging new parents to enroll.”

Maine Medical Center also scores high in program enrollments and, as the largest hospital in the state, contributes nearly 20% of all enrollments. According to Kara Kaikini, the hospital’s OB parent education program coordinator, “We believe in the program and realize not every state has a grant offering like this. It’s something unique we can provide our patients to help them start investing for college early. Education about the grant program has been integrated into our daily routine, and we encourage new parents to participate through our medical records staff, childbirth education classes and volunteer ambassador program. Our volunteers help parents complete and mail the inquiry forms.”

Despite high awareness levels among parents, challenges in completing the application remain. In some instances, parents believe they have completed the application when they provide their information on the inquiry form at the hospital and never take the important step of filling out the NextGen account application. Some parents say they are too busy and often forget to fill out and submit the application within the one-year period.  And for some, the application seems too difficult to complete on their own.

Removing Barriers to Participation

FAME and ASF are working hard together to remove these barriers so more parents enroll before their child’s first birthday and before the opportunity expires. Events called the “Future Faces of Maine Casting Calls” have been developed to raise awareness and make enrollment easier for parents. Held six times a year at various locations across the state, these events are designed to give parents an opportunity to meet with program staff that can assist them in completing the NextGen account application. Families also receive a free, professional photograph of their baby. In March of this year, the application was made available online. This gives parents the opportunity to participate in live chat with experts who can help them complete the application.  The application can be accessed online through www.500forbaby.org.

Over the past two years, casting call events have attracted nearly 2,500 Maine babies and assisted with the opening of 1,800 NextGen accounts. Casting calls played an important role in enrollment growth in Aroostook County, attracting more than 12 percent of those residents who are eligible.

Today, more than 25 percent of all families enrolled have chosen to contribute their own funds to NextGen accounts to further help their children prepare for college. Additional matching grants have also been introduced by FAME to encourage families to add their own contributions.

Vanderweide concluded: “September is national College Savings Month and what better way to celebrate in Maine than to encourage a parent of a Maine child under the age of one to complete an application to receive the $500 Harold Alfond College Challenge grant?”

For the remainder of 2011, the following Casting Call events are planned:  

Saturday, Sept. 17, 2011 – 10 a.m. to 2 p.m.

South Portland

Wyndham Hotel Ballroom (across from Best Buy at the Maine Mall)

Saturday, Oct. 1, 2011 – 10 a.m. to 2 p.m.

Augusta

University of Maine Augusta - Room 138 in the Richard J. Randall Student Technology Center

Families may request NextGen application materials be mailed to them directly, complete an application online through www.500forbaby.org or contact their financial advisor.  Any questions about the Harold Alfond College Challenge Grant or the NextGen College Investing Plan should be directed to FAME 1-800-228-3734 or info@500forbaby.org.

Please remember there's always the potential of losing money when you invest in securities.

The Alfond Grant is awarded to a NextGen account. NextGen is a Section 529 plan administered by the Finance Authority of Maine (FAME). Before you invest in NextGen, request a NextGen Program Description and Participation Agreement (Program Description) from your Maine bank or financial advisor, or call FAME at 1-800-228-3734, and read it carefully. The Program Description contains more complete information, including investment objectives, charges, expenses and risks of investing in NextGen, which you should carefully consider before investing. You also should consider whether your home state or your designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 plan. Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, Member SIPC, is the program manager and underwriter of NextGen. 

“Qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local income taxes.

ASF commissioned Pan Atlantic SMS Group of Portland to conduct the survey. Results had a statistical validity at the 95% confidence interval level with a margin of error of 3.79%

Bangor Dailly News, September 4, 2011

Baby Bentley Coyle of Caribou is Alfond Baby 10,000

http://bangordailynews.com/2011/09/04/news/aroostook/harold-alfond-scholarship-program-hits-10000-milestone/

Over one hundred Maine babies under the age of one are expected to converge at Educare Central Maine in Waterville for an upcoming “Future Faces of Maine” Casting Call.  The Casting Call event is being held to find fresh Maine baby faces to promote the Harold Alfond College Challenge, a $500 grant for higher education available to all Maine babies up to their first birthday.  This casting call will be held at Educare Central Maine oat 56 Drummond Avenue in Waterville on Saturday, August 13 from 9:00am – 12:00pm. Two more additional casting calls will occur before the end of the year, Wyndham Hotel in South Portland, ME on September 17, 10:00am – 2:00pm and UMA in Augusta, ME on October 1, 10:00am – 2:00pm.

“Casting Calls have proven to be wonderful experiences for babies and their families,” said Elizabeth Vanderweide, program manager for the Harold Alfond College Challenge.  “Not only will families receive a free, professional photograph of their baby, but Casting Calls also provide an opportunity for families who wish to receive help to complete the NextGen account application, which is required in order to receive the $500 Harold Alfond College Challenge Grant.”

The $500 Alfond Grant is available to all Maine babies when a NextGen College Investing Plan account is opened by their first birthday.  At the casting calls, Maine babies under the age of one will receive a free professional photograph and may have their picture appear in future Harold Alfond College Challenge promotional materials.  For interested families, Finance Authority of Maine (FAME) staff will be on hand to provide information and assistance in completing the application for the $500 grant.

Casting call events over the past two years have attracted over 2,500 Maine babies and assisted in the opening of 1,600 NextGen accounts.  Over 10,000 Maine babies have opened accounts and received the $500 Alfond Grant, with 25% of families also contributing their own funds.  There are no income limits and no contributions are required to receive the $500 grant.  Funds in the NextGen account may be used to pay for qualified higher-education expenses at any accredited post-secondary school, including four-year and two-year public and private colleges, certificate programs, trade schools, and even graduate schools.

About the Alfond Scholarship Foundation

The Alfond Scholarship Foundation is a nonprofit corporation established specifically to sponsor and support the Harold Alfond College Challenge.  The foundation is a partnership of organizations and individuals who truly embrace Mr. Alfond’s philosophy, and includes representatives from the Maine Compact for Higher Education, FAME, the University of Maine System, the Maine Community College System, the Maine Community Foundation, the Mitchell Institute, and at-large members that include representatives from MaineGeneral Health and the Maine Hospital Association.  To learn more about the Harold Alfond College Challenge, please visit www.500forbaby.org.

About the Finance Authority of Maine (FAME)

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine people and businesses pursue educational and business opportunities.  Established in 1983, FAME is committed to innovative, flexible financial solutions that address the needs of Maine individuals and companies in a changing economic landscape.  FAME administers the Harold Alfond College Challenge and the NextGen College Investing Plan.  To learn more about FAME, please visit www.famemaine.com

1 To be eligible for favorable tax treatment afforded to the earnings portion of withdrawals from 529 accounts, such withdrawals must be used for “qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local income taxes.

2 Institutions must be eligible to participate in federal student financial aid programs. Some foreign institutions are eligible.

Please remember there's always the potential of losing money when you invest in securities.

Free Professional Photographs and Help Offered to Receive the

$500 Alfond Grant at Both Locations

Over three hundred Maine babies under the age of one are expected to converge at the Bangor Mall and the Wyndham Hotel Ballroom in South Portland for upcoming “Future Faces of Maine” Casting Calls.  The Casting Call events are being held to find fresh Maine baby faces to promote the Harold Alfond College Challenge, a $500 grant for higher education available to all Maine babies up to their first birthday.  Casting calls will be held at the Bangor Mall on Saturday, April 9 from 10:00am – 2:00pm and at the Wyndham Hotel Ballroom in South Portland across from Best Buy at the Maine Mall from 10:00am – 2:00pm on Saturday, April 16.

“Casting Calls have proven to be wonderful experiences for babies and their families,” said Elizabeth Vanderweide, program manager for the Harold Alfond College Challenge.  “Not only will families receive a free, professional photograph of their baby, but Casting Calls also provide an opportunity for families who wish to receive help to complete the NextGen account application, which is required in order to receive the $500 Harold Alfond College Challenge Grant.”

The $500 Alfond Grant is available to all Maine babies when a NextGen College Investing Plan account is opened by their first birthday.  At the casting calls, Maine babies under the age of one will receive a free professional photograph and may have their picture appear in future Harold Alfond College Challenge promotional materials.  For interested families, Finance Authority of Maine (FAME) staff will be on hand to provide information and assistance in completing the application for the $500 grant.

Casting call events over the past two years have attracted nearly 2,000 Maine babies and assisted in the opening of 1,200 NextGen accounts.  Over 8,000 Maine babies have opened accounts and received the $500 Alfond Grant, with 25% of families also contributing their own funds.  There are no income limits and no contributions are required to receive the $500 grant.  Funds in the NextGen account may be used to pay for qualified higher-education expenses at any accredited post-secondary school, including four-year and two-year public and private colleges, certificate programs, trade schools, and even graduate schools.

1 To be eligible for favorable tax treatment afforded to the earnings portion of withdrawals from 529 accounts, such withdrawals must be used for “qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local income taxes.

2 Institutions must be eligible to participate in federal student financial aid programs. Some foreign institutions are eligible.

Please remember there's always the potential of losing money when you invest in securities.

Nearly 8,000 Harold Alfond College Challenge Grants Awarded

Boden Brown of Scarborough shares late philanthropist Harold Alfond’s birthday on March 6, although Boden is just turning one and Mr. Alfond would have been 97 years old this year.  Boden’s parents, Kathy and Casey Brown, share Mr. Alfond’s vision for Boden – that he and Remy, his 2 ½ year-old brother, will have the financial resources to go to college.  “We were very excited to receive the Alfond Grant gift for Boden.  We knew we wanted to start saving early for our boys’ college expenses, and the $500 Alfond Grant enabled us to start sooner,” said Mrs. Brown.

Both of Boden’s parents attended college in Maine, but didn’t have college savings, so they had to pay or borrow as they went.  They heard about the Harold Alfond College Challenge from other parents and health care professionals.  “We looked at the projected costs of college and checked out the NextGen College Investing Plan and knew it was the way we wanted to go,” said Mr. Brown, who is a CPA.

Mrs. Brown, who is a social worker, said, “We made it a priority to put $50 per month for each boy in the budget.  We could easily spend it on something else, but, given the high expected costs of college, we are committed to putting the money in each month so the boys can have options for college and careers.”

On the eve of what would have been Harold Alfond’s 97 birthday, the Alfond Scholarship Foundation has awarded nearly 8,000 grants of $500 each to the families of Maine babies to start college investing accounts for them.  With nearly 40% of eligible Maine babies participating in the program, the Alfond Scholarship Foundation is helping to create a whole new generation of investors planning for their children’s college educations.

Given the rising costs of a college education, Maine parents will need to save and invest more than ever before.  By 2028, the average cost of a four-year education, including tuition and fees for in-state residents at a public university, is expected to rise from $33,300 in 2010 and to $95,000 in 2028, according to SavingForCollege.com. College costs are assumed to increase 6% annually.

“Mr. Alfond’s vision was that families, communities and businesses would rise to the challenge of investing in the educational aspirations of Maine’s children, and it’s happening,” said Elizabeth Vanderweide, program manager for the Harold Alfond College Challenge.  “Of the nearly 8,000 NextGen College Investing Plan (NextGen) accounts created since the program’s inception, over 25% of those accounts have received additional contributions.”  

The $500 Alfond Grant is available to all Maine resident babies when a NextGen account is opened by their first birthday.  There are no income limits and no contributions are required to receive the $500 grant.  Administered by the Finance Authority of Maine (FAME), funds in the NextGen account may be used to pay for qualified higher education expenses at any accredited post-secondary school, including four-year and two-year public and private colleges, certificate programs, trade schools, and even graduate schools.

Parents of Maine babies may apply for the grant by visiting http://www.500forbaby.org or calling FAME 1-800-282-3734 and completing an application prior to their child’s first birthday.  To assist families with opening accounts, the Alfond Scholarship Foundation also hosts “Casting Calls” around the state.  At a Casting Call, parents obtain a free professional photograph of their baby along with assistance in completing the NextGen application.  Spring Casting Calls are currently scheduled for April 9, 2011 at the Bangor Mall and April 16, 2011 at the Wyndham Hotel in South Portland.

1 To be eligible for the favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for “qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local taxes.

2 Certain restrictions apply. Please see the Terms and Conditions for details.

Please remember there's always the potential of losing money when you invest in securities.