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2008 NextGen First Step Grant |
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Terms and Conditions |
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Eligibility Requirements: A NextGen College Investing Plan account (NextGen Account) must be opened within twelve months of a child born at MaineGeneral Medical Center (Waterville or Augusta, Maine campuses) on or after January 1, 2008, who is a Maine resident to obtain a one-time Harold Alfond College Challenge grant of $500 and one-time NextGen First Step Grant of $50 (Alfond Grant and First Step Grant). Only one Alfond Grant and one First Step Grant will be awarded for each eligible baby. Alfond Grant and First Step Grant Programs – Generally: 1. NextGen Accounts receiving the Alfond Grant and First Step Grant can also receive NextGen Annual Matching Grants for subsequent contributions if eligible. 2. The Alfond Grant and First Step Grant will be considered the initial contribution into the NextGen Account. No other contribution to the account is required, although additional contributions are encouraged. 3. A NextGen Account Application must be completed and forwarded to FAME before an Alfond Grant and First Step Grant can be awarded. In the event more than one eligible individual opens a NextGen Account for the same eligible baby, the first NextGen Account Application received by FAME will be awarded the Alfond Grant and First Step Grants. In the event Applications are received on the same day, a NextGen Account will be chosen for awarding at the discretion of FAME. 4. Neither amounts contributed through an Alfond Grant and First Step Grant nor earnings, if any, on grant funds are considered when determining eligibility for NextGen Annual Matching Grants. 5. A NextGen Account will not be eligible to retain Alfond Grant and First Step Grant funds in the following circumstances: a. the NextGen Account is closed; or b. the NextGen Account is rolled over to another beneficiary; or c. the NextGen Account is rolled over to another state 529 plan; or d. lifetime change of ownership to anyone other than the account beneficiary; or e. death of beneficiary. Investment of Alfond Grant and First Step Grant Funds: All Alfond Grant funds will be invested in the Harold Alfond College Challenge Portfolio at the discretion of FAME. All First Step Grant funds will be invested in the Matching Grant Portfolio at the discretion of FAME. The account owner or account beneficiary has no ability to direct the investment of grant funds. Alfond Grant and First Step Grant funds will be deposited into the NextGen Account by FAME at least quarterly. Use of Alfond Grant and First Step Grant Funds: Although allocated to a particular NextGen Account, Alfond Grant funds will remain the property of the Harold Alfond Foundation, and First Step Grant funds will remain the property of FAME, until withdrawn for qualified higher education expenses. Alfond Grant and First Step Grant funds, including earnings on the grant funds, will be fully used before other contributions to the NextGen Account or earnings thereon, if any, are used for qualified higher education expenses. To use Alfond Grant and First Step Grant funds, the NextGen Account owner must certify that such funds are being used for qualified higher education expenses on such form as required by FAME. If grant funds or earnings, if any, are withdrawn and FAME later determines that the application or request for withdrawal was fraudulent, FAME may set-off the amount fraudulently obtained from any funds remaining in the NextGen Account. Tax Consequences: The Alfond Grant and First Step Grant programs have been designed so that the grants, including the earnings, if any, used for certain qualified higher education expenses will be treated as a scholarship as defined by the Internal Revenue Code. Grant funds can be used for tuition, fees, certain room and board expenses, books, supplies and equipment required for enrollment or attendance at the eligible institution. However, any portion of grant funds used as payment for room and board expenses may be subject to federal and/or state income tax and the student may be required to report such amount to the Internal Revenue Service when filing his or her tax return. Similarly, any portion of a grant used to pay for qualified higher education expenses at correspondence schools may not be eligible for federal and/or state tax-exempt treatment. Notwithstanding the design of the programs, the Internal Revenue Service could take the position that grant awards are subject to federal income taxation in the year awarded. NextGen Account owners and account beneficiaries should consult their own tax advisor regarding the federal tax treatment of grants. Release of
Information: FAME may share non-public personal
information with organizations conducting research in conjunction with FAME
and its NextGen grant programs, and no individual non-public information will
be published. |