The funding for this program was provided by Harold Alfond, philanthropist and founder of Dexter Shoe Company. Alfond's foundation has given away more than $100 million dollars to higher education and athletic causes since 1950.
Eligibility for Funds:
To be eligible for funds under the program, a Maine baby must meet the following two requirements:- Be born to a Maine resident on or after January 1, 2009
- Have a NexGen Section 529 plan opened for them within one year of birth
Interestingly enough, the NexGen Section 529 plan does not need to be opened by the child's parent. It can be opened by any adult such as a grandparent, aunt, uncle, or other relative. Additionally, no further contributions ever need to be made to the NexGen Section 529 plan by the account owner.
Restrictions on Use of Funds:
The original $500 contribution, as well as any earnings on that amount, must be used for higher education expenses by the time the child turns 28 years old. Unlike funds contributed by the account owner, these funds may not be withdrawn and used for any other purposes besides college expenses.The funds do not have to be used at a college in Maine, but may be used anywhere in the United States towards an associate's, bachelor', or graduate degree. The money may also be used towards trade school and certificate programs.
Opening an Account for a Maine Baby
To open an account, an adult must submit a NexGen account application. If the child is eligible, the Finance Authority of Maine (FAME) will automatically deposit the $500 to the child's account.Once the account is successfully opened, parents will receive a series of three confirmation letters - two from the Finance Authority of Main (FAME) and one from Merrill Lynch, the plan's investment manager.
Contact Information for the Maine Baby Program
For more information on the Harold Alfond College Challenge for Maine babies, as well as to request an account application, visit the official site at www.500forbaby.org.You can also contact FAME by phone at 800-228-3734.