Harold Alfond Challenge Grant Helps Maine Babies Prepare For College
A new program in Maine is giving newborn babies a $500 grant for college.
The Harold Alfond College Challenge provides a $500 grant to every Maine baby to start a college savings account. Originally started in 2008 on a limited basis, the program is now offered to all newborn babies in Maine to help their families plan for their children’s college education.
Every baby born in Maine is eligible, and there is no income limit or additional money needed to receive the grant. $500 is deposited into a NextGen fund for the newborn and is to be used for education beyond high school. To qualify for the grant, a NextGen enrollment form must be filled out before the baby’s first birthday.
Harold Alfond was life-long Mainer who founded the Dexter Shoe Company and later established the Harold Alfond Foundation in 1950. Alfond’s love of Maine was apparent through his many charitable causes. His giving focused on education and health care, with the Harold Alfond College Challenge his legacy gift to every Maine baby.
To open a NextGen account on behalf of a newborn, the account owner must be 18 years of age. NextGen is Maine’s college savings program (also known as a Section 529 plan) that provides unique tax advantages and other special features to encourage families to save for college. Adopted babies and those whose parents move to Maine before the age of one are also eligible.
Family and friends can add money to the child’s NextGen account at any time. Though additional contributions are not required, it was Mr. Alfond’s hope that families, communities and businesses would rise to the challenge of investing in the educational future of Maine’s children. The Alfond Grant can only be used to pay for accredited post-secondary schools in the U.S., including graduate schools and trade schools, as well as some foreign institutions that participate in federal financial aid programs.
Since 2008, more than $2.5 million has been distributed to the estimated 14,000 babies born each year. And, thanks to the generosity of Harold Alfond, Maine babies will now have a leg up on planning for a their future, which in turn makes the outlook in Maine that much brighter.
For more information on The Harold Alfond College Challenge, please visit: www.500forbaby.org.
