Automated Funding Grant

Grant Eligibility Requirements

• The NextGen account is opened on or after January 1, 2011 for a new benficary; and
• Either the account owner or account beneficiary is a Maine resident at the time the grant is awarded.

How do I start making automated contributions?

• NextGen accounts can be funded through payroll deduction or by automatic withdrawals from your bank account – known as Automated Funding Service (AFS). To access the necessary forms to initiate one of these processes click here.
• Automated contributions must be at least $50 monthly per account.

What Else Should I Know?

• FAME will credit AFG awards to eligible Maine accounts only after an automated funding option has been elected and an automated funding contribution has been made to the account.
• View the Automated Funding Grant Terms and Conditions for other conditions and restrictions that apply.

IMPORTANT NOTICES

Although automated funding grant funds will appear on the NextGen account statement, all matching grant funds, including earnings on matching grant funds if any, remain the property of FAME until used for qualified higher education expenses as defined by the Internal Revenue Code.* 

*To be eligible for favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for “qualified higher education expenses,” as defined in the Internal Revenue Code.  Any earnings withdrawn that are not used for usch expenses are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes.

FAME may modify or terminate any matching grant program at any time.