2008 Harold Alfond College Challenge and

NextGen First Step Grant

Frequently Asked Questions

What is the Harold Alfond College Challenge? 

The Harold Alfond College Challenge is a new program that will provide a $500 grant to every Maine baby to start a college savings account (Maine’s NextGen College Investing Plan) and help Maine families plan for a child’s college education. 

In 2008, the Harold Alfond College Challenge grants will be limited to babies born at MaineGeneral Medical Center in Augusta and Waterville.  The program will be expanded statewide beginning January 1, 2009.

The NextGen College Investing Plan is Maine’s college savings program, administered by the Finance Authority of Maine (FAME).  The Harold Alfond Foundation brought together FAME and MaineGeneral Medical Center to implement this first-of-its-kind model program in 2008.

Who is eligible for the Harold Alfond College Challenge grant? 

• The baby must be born at MaineGeneral Medical Center on or after January 1, 2008.
• A NextGen® account naming the baby as a beneficiary must be opened before the baby’s first birthday.  Anyone can open a NextGen account regardless of income or residency.
• The baby must be a Maine resident at the time the NextGen account is opened.
• Maine babies will also receive a $50 NextGen First Step Grant from FAME.
• Only one Harold Alfond College Challenge grant and NextGen First Step Grant per baby.

How does a family receive their baby’s $500 Harold Alfond College Challenge grant? 

In order to obtain the $500 Harold Alfond College Challenge grant, a completed NextGen Account Application must be submitted to FAME.  FAME will deposit the $500 Harold Alfond College Challenge grant and $50 NextGen First Step Grant into a NextGen account only after the account is opened and an account number is assigned.

The child's social security number is required in order to open the NextGen account.  The NextGen Account Applications should be submitted to FAME once all other sections of the application have been completed.  Families may call-in the new baby's name and social security number once the information is available.  FAME will write in your baby’s information (including the social security number) on the account application and process accordingly.

Parents will be encouraged to complete a NextGen Account Application before leaving the hospital with their new baby.

How will the family know that the NextGen account is opened and grants awarded?

The account owner can expect to receive two communications:  (1) a confirmation letter from Merrill Lynch, the program manager, confirming that the account has been opened and account number; (2) a congratulatory award letter from FAME notifying you that your Harold Alfond College Challenge grant and First Step Grant have been deposited to the account.

Can family members contribute additional funds to the child’s account?

Parents, grandparents, uncles, aunts and friends can make contributions to grow the child’s NextGen account.  Although no additional contribution is required, it was Mr. Alfond’s deepest hope that families would continue contributing to their child’s NextGen account. 

Are there any restrictions on the use of the Harold Alfond College Challenge grant?

The Harold Alfond College Challenge grant, including all earnings on the grant funds, can only be used to pay for higher education expenses 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 certificate programs, as well as associate, bachelor, master, doctoral and professional degrees beyond high school.

What about babies born during 2008 at a hospital other than MaineGeneral Medical Center?

MaineGeneral Medical Center has agreed to serve as a model for this program in 2008, prior to it being expanded to the entire State of Maine in 2009.  The $500 Harold Alfond College Challenge grant will be available to ALL Maine resident babies, regardless of where the baby was born, beginning January 1, 2009, including babies adopted by Maine residents.  

Families with babies born in 2008 at a hospital other than the MaineGeneral Medical Center may take advantage of other NextGen savings incentive programs administered by FAME. 

• A one-time $50 First Step Grant is available to all Maine resident babies named as a beneficiary on a NextGen account before the baby’s first birthday, regardless of family income; and
• A one-time $200 Initial Matching Grant is available to income eligible Maine residents who open a NextGen account with a $50 initial contribution.

Babies scheduled to deliver at MaineGeneral Medical Center, but delivered elsewhere due to medical complications, are eligible to receive the Harold Alfond College Challenge grant in 2008.