Paying for Education: There Are More Options Than You Might Think
Maine families have more ways to pay for education after high school than many people realize. Grants, scholarships, savings, and other resources can work together to make higher education affordable. We’re here to help you understand your options and how to access the funding available to you.
Start Here: Estimate Your Financial Aid Need
Before exploring your funding options, find out where you stand. Answer a few questions about your family’s finances and this calculator will estimate your Student Aid Index (SAI). The SAI is a calculated number based on the information you’ll provide on your FAFSA which represents your family’s financial strength. Colleges use the SAI to determine financial aid eligibility. Once you’ve used this calculator, you’ll see your estimated eligibility for both Pell Grants and Maine State Grants based on your SAI.
Now See How to Fill the Gap
Once you know your estimated financial need, explore the funding options below to see how grants, scholarships, savings, and other resources can work together to help cover the cost.
Need help? FAME is here for you.
Money You Don’t Have to Repay
Grants and scholarships are funds you never have to pay back.
Pell Grant – Up to $7,395 annually
What it is: Money from the federal government that doesn’t have to be repaid to help cover the cost of education and training after high school.
Who qualifies: Based on your family’s income and size — over 55% of Maine families qualify for at least some Pell Grant funding.
How to get it: File the Free Application for Federal Student Aid (FAFSA). When you file the FAFSA you are automatically considered for a Pell Grant and other types of financial aid.
Bonus: Grants don’t have to be repaid.
Maine State Grant – Up to $2,500 annually
What it is: Money for Maine residents that doesn’t need to be repaid.
Who qualifies: Maine residents who have a qualifying Student Aid Index (SAI) and are attending an eligible school — including almost all Maine schools, plus certain out-of-state options through the New England tuition break program. Eligibility is determined automatically when you file the FAFSA.
How to get it: No separate application — just file the FAFSA as a Maine resident by the deadline (typically May 1).
Bonus: Stacks on top of federal aid.
Scholarships
What it is: Hundreds of scholarships are available to Maine students through many different sources.
Who qualifies: All backgrounds, interests, and education paths — there’s something for everyone.
How to get it: Start with FAME’s scholarship database, check with your school’s guidance department, and explore the Maine Community Foundation. The Worthington Foundation alone awards over 1,000 scholarships per year to Maine high school seniors.
Bonus: Many scholarships go unclaimed, so there’s less competition than you think.
Alfond Grant
What it is: A $500 grant for eligible Maine students from the Alfond Scholarship Foundation.
Who qualifies: Children born Maine residents at MaineGeneral Hospital in 2008 (pilot year) and children born between 1/1/2009 and 12/31/2012 who had a NextGen 529® account opened for their benefit before their first birthday. The grant is automatically awarded to all babies born Maine residents since January 1, 2013.1
How to get it: Check to see if your student has an Alfond Grant — and an estimate of how much it is worth today — at MyAlfondGrant.org.
Bonus: Families can use their $500 Alfond Grant to open a NextGen 529 account, without making an initial contribution. That means they can open a NextGen 529 account anytime and add money when they’re ready. There are a lot of benefits to saving for college with a NextGen 529 account, including matching grants for Maine residents2 and no minimum contribution.
Free Tuition at Maine’s Community Colleges
What it is: Free tuition for recent and future high school graduates (or students who earned the equivalent of a high school diploma, like a GED or HiSET) who are Maine residents.
Who qualifies: Graduates in 2024 and 2025 are eligible for 100% coverage of tuition and mandatory fees; graduates in 2026 or later are eligible for 100% coverage of tuition. Here’s how it works: federal and state grants are applied first to these expenses and then any remaining balance is paid by the Free College Scholarship.
How to get it: Apply to one of Maine’s seven community colleges and file the FAFSA. FAFSA filing is required for all students who meet the federal student aid eligibility requirements. Students who aren’t eligible for federal student aid or who are unable to file the FAFSA for other reasons should contact their college and work with an on-campus advisor.
Bonus: Students qualifying for maximum federal and state grant aid will have remaining grant funds available to help cover fees, books, supplies, housing, food, or other educational expenses.
Visit: Maine Community College’s Free College Scholarship.
Institutional Aid – Varies
What it is: Funding colleges award to their students who meet certain criteria.
Who qualifies: Varies by school — may be based on academics, talent, or financial need. Use the Big Future website to research schools and learn more about the aid schools offer.
How to get it: Apply and be accepted to the school and complete required financial aid forms. Some schools require the CSS Profile, or other financial aid form, in addition to the FAFSA.
Bonus: In total, Maine colleges offer over a hundred million dollars in institutional aid each year.
Learn more: Contact the financial aid office at the schools you’re considering and be sure to ask if they require the CSS Profile or other application to apply for institutional financial aid.
Employers Tuition Assistance
What it is: An employee benefit offered by some employers that provides funds to cover some or all tuition expenses.
Who qualifies: It depends on the employer – some offer this benefit to their employees and/or their dependents.
How to get it: Parents and students should ask their current employer if they offer a tuition assistance benefit. When searching for new employment opportunities, ask if employee tuition assistance is one of the benefits offered.
Learn more: Employee Tuition Assistance
Savings & Tax Breaks
Build your own funding block by saving over time.
NextGen 529® – Varies
What it is: Maine’s tax-advantaged education savings account.
How to get it: Learn more about NextGen 529 and how to open an account at NextGenForME.com.
Bonuses:
- Maine state tax deduction up to $1,000 per year.
- You may qualify for hundreds of dollars in matching grants for opening and contributing to a NextGen 529 account, completing financial education, or setting up automated funding.2
- Funds can be used for many kinds of education and families can continue to save while their students are attending higher education – it’s never too late to start.
Student Savings from Work
What it is: Designate a percentage of your income to go into a savings account.
How to get it: Discuss the student’s work situation and make a plan to contribute to a savings account dedicated to education expenses. Income sources can include on- or off-campus employment, internships, freelancing, or even work-study. Consider a savings account that is not linked to other accounts and not accessible via debit card. Requiring a trip to a physical location to withdraw money can make saving easier!
Bonus: Based on the FAFSA formula, dependent students can have up to $12,000 in income before there is any impact on financial aid eligibility.
American Opportunity Tax Credit – Up to $2,500 per year
What it is: A federal tax credit for qualified education expenses paid on behalf of an eligible student during the first four years of higher education.
Who qualifies: Students pursuing a degree or other recognized credential who are enrolled at least half-time, have not completed four years of post-secondary education, and have no felony drug convictions. Income limits apply.
How to get it: Claim the credit when filing your federal tax return using IRS Form 8863.
Bonus: Up to 40% of the credit (up to $1,000) is refundable, meaning you may get money back even if you don’t owe taxes.
Explore Education Tax Benefits
Lifetime Learning Credit – Up to $2,000 per year
What it is: A federal tax credit for qualified education expenses paid on behalf of an eligible student enrolled in an eligible educational institution.
Who qualifies: Available for undergraduate, graduate, and professional degree courses — including courses to acquire or improve job skills. There’s no limit on the number of years you can claim it. Income limits apply.
How to get it: Claim the credit when filing your federal tax return using IRS Form 8863.
Bonus: Useful for adult learners, graduate students, and anyone taking continuing education courses.
Federal Student Loans
Federal Student Loans – Up to $5,500 – $7,500 based on grade level
What it is: Money from the federal government that must be repaid after school.
Who qualifies: U.S. citizens or eligible noncitizens who are enrolled at least half-time in an eligible degree or certificate program.
How to get it: File the FAFSA (it’s free to file the FAFSA and required for all aid).
Bonus: More flexibility than other types of loans.
Explore Pathways, Build Financial Wellness & Find Your Best-Fit School
Explore Maine Education Pathways
Whether you’re certain about college, training, or another path — or still figuring it out — you can explore different pathways that lead to a rewarding career or further education. Check out the Maine Education Pathways page for ideas and guidance on what steps to take next.
Find Schools That Meet a Higher Percentage of Need
If you want to find schools that meet a higher percentage of financial need, visit the Big Future College Search site to compare options and see what best fits your situation.
Build Your Financial Wellness
Financial wellness is an important part of your journey. Find resources to help you manage your money, understand payment plans, and make informed decisions when paying for higher education.
Not sure where to start? FAME can help.
FAME offers free guidance in multiple ways to help you understand your funding options and navigate the process.
I want to meet one-on-one with a FAME financial aid expert.
Get personalized, one-on-one support from FAME’s financial aid experts. In these sessions, we’ll help you understand what you qualify for and walk you through your options so you can make a decision about education funding that’s best for your situation.
I just have some quick questions.
Call us at 800-228-3734 or email us at Education@FAMEmaine.com.
Your funding is waiting — let FAME help you claim it.
Resources for Counselors, Students & Adult Learners
Helpful tools and guidance for anyone supporting Maine students on their path to college funding.
For High School Counselors
Explore training and professional development opportunities, FAFSA resources and tips, and scholarship overviews — all on our site.
For Current Students
Find resources to help you prepare to apply for financial aid and scholarships.
For New Mainers
Learn about resources, information, and personalized support available to help New Mainers reach their educational goals.
For Adult Learners & Returning Students
Learn about funding options, savings tools, and flexible programs for returning students.
1The Alfond Grant is not automatic in all circumstances and is also available in limited other circumstances. The use of the Alfond Grant is also subject to certain restrictions – see Alfond Grant Guidelines.
2Grants for Maine Residents are linked to eligible Maine accounts. Upon withdrawal, Grants for Maine Residents are paid only to institutions of higher education. See Terms and Conditions of Maine Grant Programs for other conditions and restrictions that apply. Grants may lose value.
Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges, and expenses before investing. For a copy of the Program Description, visit NextGenforMe.com or call 1-833-336-4529.
Investments in NextGen 529 are not guaranteed or insured by the State of Maine, the Finance Authority of Maine (FAME), NextGen 529 service providers, any other state or federal agency, or any other party. Non-qualified withdrawals are subject to federal taxes and penalties and Maine state income tax. NextGen 529 does not provide legal, investment, financial aid, tax or other advice, and the information provided does not contain advice and cannot be construed as such or relied upon for those purposes. You should consult your own advisors.
If you or your beneficiary are not Maine residents, your home state or that of your beneficiary may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds, and protection from creditors, not available to you by investing in NextGen 529. You should consider such benefits, if any, before investing in NextGen 529.
NextGen 529 is a Section 529 plan administered by FAME. Vestwell State Savings, LLC is the program manager, The Bank of New York Mellon is the program custodian, BlackRock Advisors, LLC is the program investment manager. BlackRock Investments, LLC, Member FINRA, is the program distributor and underwriter for the Client Select Series only. Northern Lights Distributors, LLC, Member FINRA, is the program distributor and underwriter for the Client Connect and Client Direct Series. Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill), a registered broker-dealer, registered investment adviser, Member SIPC, is the NextGen 529 Direct Series recordkeeping agent. BlackRock Advisors, LLC is an affiliate of BlackRock Investments, LLC; the other service providers to NextGen 529 are not affiliated with each other.
