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Nextgen Accounts
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| Tracey Cousineau |
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| 2/2/2009 |
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Grandparents can apply for $500 Harold Alfond College Challenge Money
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 unique part
of these college saving plans is that
anyone 18 years or older can
open the NextGen account on behalf of the Maine resident baby
regardless of income or residency. You
simply need to complete and submit a NextGen enrollment form naming the
baby as the beneficiary before the baby’s first birthday in order to
receive the Alfond Grant.
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.
However, if you choose to
contribute to the account, NextGen contribution coupons are available to
make it easier for family and friends to invest into the NextGen
account. NextGen is 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
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, which also includes
associate, bachelor, master, doctoral and professional degrees.
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.
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 offered 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
1-800-228-3734 or on-line at
nextgen@famemaine.com.
You can apply for the Harold Alfond College Challenge for your
grandchild online at
www.500forbaby.org or call 1-800-228-3734 for an
application. Once you have
enrolled a child into a NextGen program, the account owner can expect to
receive a letter from Merrill Lynch, FAME’s Program Manager, providing
the NextGen account number and an award letter from FAME notifying you
that the Alfond Grant has been applied to the NextGen account.
For further questions or
assistance with applying for these programs, you can also call Tracey at
Health Access Network, 794-6700 or 1-866-426-4584.
