Education News

The Finance Authority of Maine (FAME) recently launched a year-long thirtieth anniversary celebration in the State House Hall of Flags. The agency unveiled a new logo and provided information and resources to legislators, stakeholders, and citizens as part of “FAME Day” at the Maine Legislature. FAME staff also was joined by professional sports team mascots from the Portland Sea Dogs, the Maine Red Claws, and the Portland Pirates. FAME partners with these sports teams through the Maine College Savings Program, also known as the NextGen College Investing Plan® (Next Gen®), through which the teams provide scholarships to Maine students.

FAME was created in 1983 by the Maine Legislature and then-Governor Joseph E. Brennan and charged with improving economic development strategies, policies, and activities, as well as securing loans and funding for Maine businesses. In 1989, FAME became the designated state guarantor for federal student loan programs, as well as the administrator of the state’s higher education grant, loan, and loan forgiveness programs. In 1998, the Legislature created the Maine College Savings Program and assigned the administrative responsibilities to FAME.  NextGen is now the seventh-largest college savings plan in the nation, with approximately $6.8 billion in assets as of April 30, 2013. In 2008, thanks to the generosity of the late philanthropist Harold Alfond, the Harold Alfond College Challenge was launched. This first-in-the-nation program provides a $500 grant to every Maine baby to open a NextGen account by the baby’s first birthday. Nearly 19,600 children now have a NextGen account seeded with this grant.

Some other impressive statistics about the agency include: 

• Over the past 5 years, FAME has awarded over $52 million in grants to 59,552 Maine students through the Maine State Grant Program.
• FAME provides financial aid and financial education information to several thousand Maine students and families each year.
• College Goal Maine, which is annually coordinated by FAME, assisted 987 Maine families with completion of the FAFSA in 2013.
• FAME’s Regional Economic Development Revolving Loan Program has made over 772 loans totaling $39 million.  These loans leveraged another $258 million in investments, helping to create and retain 10,509 Maine jobs.
• FAME’s Seed Capital Tax Credit Program has awarded $30 million in tax credits, resulting in approximately $75 million in new Maine business investments.
• In FY 2012, FAME’s commercial loan insurance and direct loan programs totaled approximately $42 million and leveraged total loans in the amount of approximately $67 million. These programs made funds available to 248 Maine businesses and helped to create and retain 4,713 Maine jobs.

FAME’s year-long thirtieth anniversary celebration will culminate with its annual dinner and awards celebration, Showcase Maine, which will take place Nov. 12 at Portland’s Holiday Inn By the Bay. The event will prominently feature business and student success stories over the years.

The Finance Authority of Maine (FAME) is recognizing April as Financial Literacy Month by offering a variety of statewide initiatives and educational workshops intended to promote the importance of financial education to Maine citizens.

FAME’s College Access and Financial Education (CAFÉ) Team will be visiting schools throughout Maine to present a variety of topics intended to improve the financial capability of Maine students. From kindergarten to college and beyond, FAME offers a diverse selection of financial education initiatives to Maine students.

FAME’s CAFÉ Team annually presents financial education sessions to several thousand Maine students. These sessions are offered directly in the school or college setting through presentations, games and a variety of hands-on learning activities.  

 
FAME also partners with American Student Assistance (ASA) to revolutionize how Maine college students manage their finances and student loans. Through the innovative educational membership program SALT®, powered by ASA and administered through a pilot program created by FAME, Maine college students and alumni receive financial education and pro-active debt management education and services free-of-charge. FAME launched the pilot at Husson University last fall, with an additional nine institutions having signed-on to the program since then. The pilot is funded by the Maine College Access Challenge Grant, a federal grant administered by FAME. Students should contact their college directly for more information about SALT.

“FAME’s financial education efforts have become a key and growing part of our mission. We provide outreach to schools throughout the state, from Aroostook to York Counties, in order to help prepare Maine students for financially prudent futures,” stated FAME Chief Executive Officer Beth Bordowitz. “FAME is a proud co-sponsor of the upcoming financial literacy conference for education professionals.” 

“Fostering Financial Literacy in Maine Schools Conference,” the fourth annual financial literacy conference for Maine teachers, administrators, counselors and others, will be held at the Augusta Civic Center on May 2, 2013 from 8:00 a.m. to 4:00 p.m.  FAME again is sponsoring the conference along with the Maine Office of Securities, the Maine JumpStart Coalition, the Maine Credit Union League, and others. FAME staff also will be presenting at the event, which is designed to help Maine teachers develop strategies for educating students about the basics of earning, saving, spending and investing money.

For more information on the financial literacy conference, please visit:

http://jumpstart.org/states-maine.html

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue businesses and educational opportunities. To learn more about FAME, please visit www.famemaine.com. 

Maine “dream-maker” and philanthropist Harold Alfond would have celebrated his 99th birthday on March 6th. His legacy lives on in our state through the Alfond Scholarship Foundation, which to date has awarded over $9 million - or 18,000 $500 Harold Alfond College Challenge Grants - to Maine babies – so they can dream big, too.

The Alfond Grant is awarded to a NextGen College Investing Plan® account administered by the Finance Authority of Maine (FAME).  Opening a NextGen® account to receive the grant can even be done online in about 15 minutes. The grant is available to any Maine resident baby for whom a NextGen account has been opened by their first birthday.

Harold Alfond was well-known for challenging wider involvement to accomplish a certain goal, and the Alfond Scholarship Foundation works with many community and hospital groups to encourage more parents to open NextGen accounts and receive the $500 grant.

Central Maine Medical Center Pediatrics, for example, had tried many things to encourage patients to sign up for the Alfond Grant and most recently installed an on-line application kiosk for parents to sign up right in the waiting room. “We have been reminding parents about the $500 opportunity for the past four years, and they often say they will get to it when they have time. It’s such a great opportunity and we want to help families in as many good health and aspirational aspects as we can,” said Pam Cullet, Practice Manager.

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

Families of Maine babies may apply for the grant by visiting http://www.500forbaby.org or calling FAME at 1-800-282-3734 and completing an application by their child’s first birthday.

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 the favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, withdrawals must be “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 applicable state and local income taxes.

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 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 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.

The Finance Authority of Maine (FAME) held its annual meeting and awards event, Showcase Maine, on Tuesday, November 13, 2012, at Portland’s Holiday Inn By The Bay.

Showcase Maine is a celebration of the many successful businesses and higher education initiatives happening within Maine. 

The evening featured a reception, including a showcase of exhibits by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech by Robert C. Pozen. 

Pozen is a senior lecturer at Harvard Business School and a senior fellow at the Brookings Institution.  He previously served as chair of MFS Investment; vice chair of Fidelity Investments; and president of Fidelity Management and Research Company.  Pozen offered post-election reflections on the U.S. economy, including the likelihood of Congress avoiding the impending “fiscal cliff.”

“We enjoyed celebrating the successes of the past year with our partners in Maine’s business and higher education communities,” said Beth Bordowitz, FAME’s Chief Executive Officer.  “We are proud to showcase Maine businesses and educational organizations, and it was a privilege for us to honor some of Maine’s innovative leaders.”

This year’s award recipients included: 

• Anania & Associates Investment Company, LLC of Portland (Business at Work for Maine Award):  Anania & Associates Investment Company is a private investment fund that invests in small, well-managed companies in the manufacturing, service and distribution sectors.  Over the years it has successfully utilized the FAME-administered Maine Seed Capital Tax Credit Program to increase out-of-state investment in Maine.  Some businesses in Anania & Associates’ portfolio have used other FAME programs to expand into new product lines.

• Junior Achievement of Maine (Education at Work for Maine Award):  JA is a non-profit organization dedicated to educating Maine students in grades K-12 about entrepreneurship, work readiness, and financial literacy through experiential, hands-on programs.  In the 2011-12 academic year, JA delivered programs to 535 Maine classes and 9,915 students in 112 Maine schools.

• Camden National Bank (Financial Institution of the Year Award):  Camden National Bank frequently partners with FAME to provide financing to Maine businesses.  It also is committed to the communities it serves, supporting a variety of businesses, community, and non-profit organizations.  The bank sponsors Community Spirit of Giving, a community outreach program that helps raise money to help area families in need at the holidays. 

• Machias Savings Bank (Financial Institution of the Year Award):  Machias Savings Bank actively partners with FAME to provide financing to local businesses, including lobstermen and the fishing industry.  In 2011, Machias Savings employees donated volunteer labor by participating in many worthy causes, from coaching youth sports to serving on non-profit boards.  During the same period, the bank made contributions to various organizations, as well.

• Hon. David Richardson of Carmel (Dirigo Legislative Champion Award):  Richardson, a state representative from Carmel, was co-chair of the 125th Maine Legislature’s Joint Standing Committee on Education and Cultural Affairs.  He is a strong supporter of FAME’s mission, especially with respect to providing higher education opportunities for all Maine students.

“Our company, which has collaborated with FAME on financing, enjoyed exhibiting our handsewn shoes before the dinner and making new connections.  We also enjoyed hearing the positive testimonials by the various award winners, as well as the informative remarks by Bob Pozen,” stated Kevin Shorey, partner in Quoddy, Inc. of Perry and Lewiston.

Prior to the dinner and awards ceremony, the FAME Board met and re-elected the following individuals as officers for 2013:  Susan Snowden of Scarborough, Chair; Cheri Walker of Falmouth, Vice President; and Patrick Murphy of Portland, Treasurer. 

Items of Interest for October 2012:

Alfond Babies Make TV Debut

Husson and Thomas Celebrate SALT

Promising Practices Forum

The Finance Authority of Maine (FAME) will hold its annual meeting and awards event, Showcase Maine, on Tuesday, November 13, 2012, beginning at 4:30 p.m. at Portland’s Holiday Inn By The Bay.

Showcase Maine is a celebration of the many successful businesses and higher education initiatives happening within Maine. 

The evening will feature a reception, including a showcase of exhibits by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech by Robert C. Pozen. 

Pozen is a senior lecturer at Harvard Business School and a senior fellow at the Brookings Institution.  He previously served as chair of MFS Investment; vice chair of Fidelity Investments; and president of Fidelity Management and Research Company.  Pozen will offer post-election reflections on the U.S. economy, including the likelihood of Congress avoiding the impending “fiscal cliff.”

“We look forward to celebrating the successes of the past year with our partners in Maine’s business and higher education communities,” said Beth Bordowitz, FAME’s Chief Executive Officer.  “We are proud to showcase Maine businesses and educational organizations, and it is a privilege for us to honor some of Maine’s innovative leaders.”

This year’s award recipients include: 

• Anania & Associates Investment Company, LLC of Portland (Business at Work for Maine Award):  Anania & Associates Investment Company is a private investment fund that invests in small, well-managed companies in the manufacturing, service and distribution sectors.  Over the years it has successfully utilized the FAME-administered Maine Seed Capital Tax Credit Program to increase out-of-state investment in Maine.  Some businesses in Anania & Associates’ portfolio have used other FAME programs to expand into new product lines.
• Junior Achievement of Maine (Education at Work for Maine Award):  JA is a non-profit organization dedicated to educating Maine students in grades K-12 about entrepreneurship, work readiness, and financial literacy through experiential, hands-on programs.  In the 2011-12 academic year, JA delivered programs to 535 Maine classes and 9,915 students in 112 Maine schools.
• Camden National Bank (Financial Institution of the Year Award):  Camden National Bank frequently partners with FAME to provide financing to Maine businesses.  It also is committed to the communities it serves, supporting a variety of businesses, community, and non-profit organizations.  The bank sponsors Community Spirit of Giving, a community outreach program that helps raise money to help area families in need at the holidays. 
• Machias Savings Bank (Financial Institution of the Year Award):  Machias Savings Bank actively partners with FAME to provide financing to local businesses, including lobstermen and the fishing industry.  In 2011, Machias Savings employees donated many hours of volunteer labor by participating in many worthy causes, from coaching youth sports to serving on non-profit boards.  During the same period, the bank contributed monetarily to various organizations, as well.  
• Hon. David Richardson of Carmel (Dirigo Legislative Champion Award):  Richardson, a state representative from Carmel, was co-chair of the 125 Maine Legislature’s Joint Standing Committee on Education and Cultural Affairs.  He is a strong supporter of FAME’s mission, especially with respect to providing higher education opportunities for all Maine students.

The public is welcome to attend in this celebration.  Anyone interested in attending the event can register online at www.famemaine.com

Items of Interest for September, 2012:

FAME's Cohort Default Rate

College Access Sub-Grant Recipients

Legislative Update

The Finance Authority of Maine (FAME) recently notified twenty-two Maine schools and non-profit education organizations that they have been chosen to receive sub-grants totaling $889,277 through the Maine College Access Challenge Grant (MCACG) administered by FAME.

The grants were awarded on a competitive basis to eligible Maine schools and non-profit organizations.  Successful proposals support the overall goal of increasing the number of Maine students who are prepared to enter and succeed in postsecondary education, with a focus on preparation, aspiration and success.  All recipients and their project descriptions are listed online at FAME’s Web site: www.famemaine.com.

Grant recipients include Ashland District High School, which will provide individualized Free Application for Federal Student Aid (FAFSA) completion assistance; PSAT, ASVAB, Accuplacer, and SAT test-taking for all seniors; job shadowing; and follow-up programming to ensure that graduates have enrolled and are attending post-secondary institutions.  Another grant recipient is Waldo County Technical Center, which will offer weekly financial literacy lessons and workshop series through their current academic readiness program; “FAFSA feasts” to provide group support and knowledgeable guidance with financial aid completion; and a summer send-off session to provide support for seniors and their families.  Wiscasset Adult and Community Education, another sub-grantee, will provide students with a Personal Higher Ed Navigator to assist with transcripts, prior learning assessment, career decision making, applications, FAFSA, admissions, orientation, peer networking, and ongoing support.

In August, FAME was notified by the U.S. Department of Education that Maine had been awarded a $1.5 million College Access Challenge Grant for Fiscal Year 2013.  Available monies are to be used by states on efforts to increase college access and success among underserved student populations.  FAME will provide a one-third required match, which equals $750,000 per year.  For the 2012-2013 academic year, the funds will be divided between college access services and sub-grants to various partner organizations across the state.

“FAME is pleased to announce these sub-grants for the MCACG Program,” stated Beth Bordowitz, Chief Executive Officer of FAME.  “These much-needed funds will help FAME and its partners throughout Maine strengthen our college access and financial education efforts to help Maine students and families achieve their postsecondary education goals.”

To accomplish its purposes, MCACG focuses on three key components:  (1) college access and completion services and programs; (2) competitive grants to organizations providing college access and/or completion services or programs; and (3) scholarships for low-income students to enroll in early college courses.

The FAME college access and financial education team includes professionals who not only work with high schools,  middle schools and elementary schools, but also coordinate with colleges, adult education centers, and college access programs to reach students and parents.  The free services provided are available to all Maine citizens, regardless of income. 

The Finance Authority of Maine (FAME) continues to post impressive Cohort Default Rates for Maine student loan borrowers.  According to data released September 17, 2012 by the U.S. Department of Education, FAME’s federal Fiscal Year 2010 official Cohort Default Rate was 4.9%, the lowest rate for the agency since 2005.  It also is the agency’s third-lowest rate since 1993.  By comparison, FAME’s Fiscal Year 2009 Cohort Default Rate was 6.1% of borrowers and in FY 2008 was 5.9%.  Last year’s national average for guaranty agencies was 7.0%  

Cohort Default Rates measure the percentage of all federal Stafford Loan borrowers entering repayment in a given federal fiscal year who default on their loans before the end of the following fiscal year.  National rates will be released by the U.S. Department of Education on September 24, 2012. 

 “FAME’s ability to maintain a low default rate benefits borrowers, schools and lenders,” stated FAME Board Chair Susan Snowden.  “FAME’s remarkable default rate is the result of expanded college access, financial education and debt management services that support financial aid offices and educate borrowers.” 

“We continue to be proud of our low default rate, especially in these challenging economic times.  But we are working hard to reduce student default rates further.  FAME’s emphasis on default prevention rather than on post-default collection is the right one for guarantors, schools, lenders and taxpayers,” stated FAME CEO Beth Bordowitz. 

FAME believes strongly that financial education is the cornerstone of debt management and default prevention.  Each year the agency recognizes April as Financial Literacy Month by offering a variety of financial education and financial-aid related workshops to students across the state.  FAME annually co-sponsors “Fostering Financial Literacy in Maine Schools,” a financial literacy summit for Maine teachers, administrators, counselors and others.  FAME also recently launched SALT, a first-of-its-kind collaboration with American Student Assistance that delivers financial education and debt management services free-of-charge to Maine students and alumni.

The Finance Authority of Maine (FAME) has partnered with American Student Assistance (ASA) to revolutionize how Maine college-goers finance and repay their higher education costs.  Through the innovative educational membership program SALTSM, functionally powered by ASA and administered in Maine by FAME, Maine college students and alumni will receive financial literacy and proactive education debt management services free-of-charge. 

SALT is the industry-leading financial empowerment program created by ASA to improve the financial capabilities of college students and alumni, as well as to assist student loan borrowers once they enter repayment.  In addition to one-on-one counseling and guidance, students and alumni will have access to online tools as part of ASA’s membership program, including:  a highly interactive, experience-based financial education curriculum; a personalized dashboard by which students may track their loans; interactive calculators; access to job and scholarship searches; and other benefits and rewards to help reduce the cost of attending college.

FAME will launch a pilot version of the program this fall when students return to class.  The pilot program will include up to nine participating Maine colleges and universities and will be funded by the Maine College Access Challenge Grant.  Students should contact their college directly for more information about SALT.

As a public purpose, nonprofit organization, ASA is committed to offering SALT services free of charge to student and alumni members by sharing the costs of service delivery with like-minded stakeholders who want to develop student financial capabilities. Since SALT’s launch earlier this year, more than eighty colleges and universities from across the country have signed up to give their students and alumni access to the program.  FAME is the first non-college entity to partner with SALT.

“This is a first-of-its-kind collaboration between two student loan service providers to address the problems of college affordability and student debt,” stated ASA President Paul Combe.   “This kind of creative solution is critical, especially because our nation’s higher education system traditionally does not include these types of proactive activities that teach students the best way to pay for college and manage the resulting debt.  We believe the Maine initiative can serve as a replicable model for other states wrangling with these issues,” he added.

According to the Project on Student Debt and the Class of 2010, Maine ranks second in the nation for the highest debt level among four-year college graduates, with an average of $29,983 per student.  At an interest rate of 6.8 percent, such debt translates into average monthly payments of $345 for more than 10 years, with total interest expected to be repaid totaling $11,422. 

“Maine students often try to navigate the college financing and loan repayment waters with inadequate knowledge of the process and without thinking through the consequences of their indebtedness,” said FAME Chief Executive Officer Beth Bordowitz.  “FAME has many initiatives in place to provide that knowledge.  With the launch of SALT, FAME is providing another opportunity for Maine students to be better prepared to plan their futures.” 

Previous ASA programs have demonstrated that students provided with proactive, customized and targeted communication, such as those provided via SALT, are 50 percent less likely to fail in loan repayment. 

About ASA

American Student Assistance is a private nonprofit whose public purpose mission is to empower students and alumni to successfully manage and repay their college loan debt.  The company was established in 1956 as the nation’s first student loan guarantor and is based in Boston, Massachusetts.  For more information, please visit www.asa.org.

Items of Interest for August 2012:

New Director of Business Development and Customer Relations

New Initiatives and Publications

EPIC Processing Notification

Items of Interest for July 2012:

EPIC Database

FAME 5 on the 5th

FAME's 2012 Showcase Maine

Items of Interest for June 2012:

Departure of Martha Johnston

EPIC

Dental Education Loan Program

The Finance Authority of Maine (FAME) announced today that various fees within the NextGen College Investing Plan® (NextGen) will be reduced.

Effective June 29, 2012, total annual asset-based fees will be reduced in most portfolios in the Client Direct (self-directed) Series.  Also, total annual asset-based fees will be reduced in all unit classes in the Client Select (advisor-sold) Series.  In addition, initial sales charges on A Unit class purchases will be reduced for certain asset classes. These and other changes can be reviewed in more detail in the Supplements dated June 29, 2012 to the Client Direct Series and Client Select Series Program Descriptions.

Most portfolio fees will be reduced between four and eleven basis points.  Fees are being reduced up to eleven basis points in the actively available A and C Unit Classes in the Client Select Series.  The Account Maintenance Fee within the Client Direct Series has been eliminated.  

For a complete list of changes to the various portfolios, please visit FAME’s Website at: 
http://www.famemaine.com/NextGenLanding.aspx

“We are pleased to be reducing fees within NextGen,” stated FAME Chief Executive Officer Beth Bordowitz.  “We are able to offer these enhancements due to the program’s success, and we’re grateful to Merrill Lynch, the Program Manager, for their cooperation in reducing their fees.  It is important for the program to remain competitive with other Section 529 plans around the nation while offering a variety of choices for investors.  FAME and its Advisory Committee on College Savings, which is chaired by the State Treasurer, continually evaluate NextGen to identify opportunities to enhance and improve the plan.”

NextGen is one of the largest Section 529 college savings programs in the country, with almost $6 billion in assets as of May 31, 2012.  It was created by the Maine Legislature in 1999 as a qualified tuition program under Section 529 of the Internal Revenue Code.  NextGen is a tax-advantaged investing program of the Finance Authority of Maine designed to help families prepare for qualified higher education expenses.  Merrill Lynch is the program manager and underwriter of the plan.  Anyone at least age 18 can open an account, regardless of income or residency, and assets can be used at any accredited U.S. post-secondary institution.  Matching grants are available to eligible accounts.

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue businesses and educational opportunities.  To learn more about FAME, please visit www.famemaine.com. 

NextGen is a Section 529 plan administered by the Finance Authority of Maine (FAME). Before you invest in NextGen, request a NextGen 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.

Items of Interest for May 2012:

Educators for Maine Program

State of Maine Grant Program

FAME Showcase Maine and Annual Meeting 2012