Unlocking Opportunity
The first recipients of the Alfond Grant are getting ready for life after high school. Your student may be one of those Mainers who received a $500 Alfond Grant.1 Now what? Here’s what you need to know about the Alfond Grant—and how to navigate the exciting path toward using your grants and savings for education after high school.
The Alfond Grant: $500 for Maine Children
The Alfond Grant is named for and was started by Harold Alfond, a Maine businessman and philanthropist. Mr. Alfond wanted all Maine students to get a head start on paying for higher education. Mr. Alfond hoped the $500 Alfond Grant would inspire families to also save for their student’s higher education.
The Alfond Scholarship Foundation operates the program and the Finance Authority of Maine (FAME) helps the Alfond Scholarship Foundation administer the Alfond Grant.
To be awarded the Alfond Grant, Alfond Grant recipients born between 2008-2012 had to have a NextGen 529 account opened for their benefit.
Eligibility
Does my student have an Alfond Grant?
Here are a few ways you may know if your student has the $500 Alfond Grant:
If your student was born a Maine resident between 2009-2012 (or born a Maine resident at MaineGeneral in 2008) they would have received the Alfond Grant if a NextGen 529 account was opened prior to their first birthday.
If your student was born as a Maine resident in 2013 or later, they have automatically been awarded the Alfond Grant!1
Not sure if your student has the Alfond Grant, a NextGen 529 account or both?
Call FAME at 207-623-3263 or 800-228-3734; TTY: 207-626-2717
Check Value
What is My Student’s Alfond Grant Worth Now?
The Alfond Grant was $500 when it was awarded. However, its value may have changed over time.
Students born between 2009-2012 (and students born in 2008 at MaineGeneral), received the Alfond Grant, if a NextGen 529 account was opened prior to the student’s first birthday.
Students born a Maine resident in 2013 or later were automatically awarded the Alfond Grant.1
If your student has a NextGen 529 account, you can view the Alfond Grant amount there.
If your student doesn’t have a NextGen 529 account, you can view the value of your Alfond Grant at a website managed by FAME.
If you haven’t already done so, you will need to create an online profile, verifying important information (the birth mother and child’s name as it is listed on the legal birth certificate, hospital name, and date of birth).
Use the Alfond Grant
How Do I Access and Use My Student’s Alfond Grant?
When you are ready to use the Alfond Grant, the grant can be paid directly to an eligible institution of higher education for qualified postsecondary expenses or to a recognized postsecondary credential program. Withdrawal of the grant funds can be made using a Withdrawal Form from your account servicer. Your account servicer may allow other options for withdrawal, such as a verbal withdrawal request by phone.
Learn more about making withdrawals from your Direct Account.
Learn more about making withdrawals from your Connect Account.
Your financial advisor can help you with a withdrawal from your Select Account.
Not sure what type of account you have? Call FAME at 207-623-3263 or 800-228-3734; TTY: 207-626-2717.
Tips for Withdrawing the Alfond Grant
- First, log in to your NextGen 529 account and verify that contact information is up to date for you (account owner) and your student (beneficiary).
- Plan ahead—start the withdrawal process a few weeks before the bill is due. Be sure to make your withdrawals in the same year the qualified education expenses will be paid.
- Withdraw the Alfond Grant and Grants for Maine Residents awarded,2 including any earnings, first. The use of grant funds is more restrictive, so consider using these funds before your own NextGen 529 contributions and earnings.
- The Alfond Grant — like the Grants for Maine Residents — is non-transferable and can only be used by the original recipient.
- Only the account owner can make a withdrawal from the account.
- Be sure to include the student’s ID number from the school on the Withdrawal Form.
- Alfond Grant funds can only be paid directly to an eligible institution of higher education and a recognized postsecondary credential program. Check to see if they have a dedicated mailing address for 529 payments.
Do’s and Don’ts of the Alfond Grant
- Do use the Alfond Grant for the student who was awarded the grant.
- Do consider using the Alfond Grant (and other Grants for Maine Residents awarded), including any earnings, first. Grant funds are more restricted in their use than other NextGen 529 funds.1
- Do complete the withdrawal request form from your account servicer and include the Student ID from the school.
- Do use the withdrawn grant in the same year as your qualified expenses.
- Do let the school know the grant request has been made and funds will be sent for the student.
- Do contact FAME at 207-623-3263 or 800-228-3734; TTY: 207-626-2717 with any questions before you make a withdrawal request.
- Do keep a record of withdrawals and expenses for tax purposes, including school-related tax documents.
- Don’t include the value of the Alfond Grant (or any FAME Matching Grants) in the Assets section of the FAFSA – only include the value of your own contributions and earnings. You may be required to report grants in the Income section of the FAFSA in the year after they are used, depending on whether the grants were used for a taxable purpose or not.
- Don’t use the Alfond Grant for a different student. The Alfond Grant (and other Grants for Maine Residents awarded) is non-transferable and can only be used by the original recipient.
- Don’t forget to make a plan for which funds are going to cover which expenses.
HAVE A QUESTION?
FAQs
How do I know if my student was awarded an Alfond Grant?
Children born between 2009 and 2012 (and babies born at MaineGeneral in 2008) received the Alfond Grant if a NextGen 529 account was opened prior to the child’s first birthday. Children born a Maine resident in 2013 or later were automatically awarded the Alfond Grant. See Alfond Grant Guidelines for more information about eligibility.
Who do I contact to find out if my student has an Alfond Grant?
Contact FAME at 207-623-3263 or 800-228-3734; TTY: 207-626-2717. You can also email NextGen529@FAMEmaine.com. If your student has an Alfond Grant (and no NextGen 529 account) they probably receive the Alfond Grant Update four times during the year. If your student has an Alfond Grant linked to a NextGen 529 account, they probably receive the NextGen 529 Quarterly Summary four times during the year.
What is my student’s Alfond Grant worth now?
The Alfond Grant was $500 when it was awarded. However, its value may have changed over time.
Children born 2009-2012 (and babies born at MaineGeneral in 2008), received the Alfond Grant if a NextGen 529 account was opened prior to the child’s first birthday.
Children born Maine residents in 2013 or later were automatically awarded the Alfond Grant.
If your child has a NextGen 529 account, you can view the Alfond Grant amount there.
If your child doesn’t have a NextGen 529 account, you can view the value of your Alfond Grant at a website managed by FAME.
If you haven’t already done so, you will need to create an online profile, verifying important information (the birth mother and child’s name as it is listed on the legal birth certificate, hospital name, and date of birth).
What can an Alfond Grant be used for?
The Alfond Grant can be used to pay for qualified higher education expenses at eligible higher education institutions or at recognized postsecondary credential programs. This includes a long list of expenses associated with postsecondary education such as tuition, fees, books, supplies required by your school or program, and required equipment.3
You can use the Alfond Grant at any schools that participate in federal student aid programs or at recognized postsecondary credential programs. There are many types of schools that qualify, including two-year colleges such as community colleges–public and private, four-year colleges and universities–public and private, career schools (also known as trade or vocational schools), eligible online schools, and recognized postsecondary credential programs.
The Alfond Grant needs to be used by the student’s 28th birthday.
I have the Alfond Grant. How do I save more?
Families can save their own money for higher education by opening a NextGen 529 account and making contributions. The NextGen 529 account can be opened anytime, and families can add money when they’re ready. After the initial contribution, there is no minimum contribution, and the account offers tax advantages and many investment options. Once the account is open, family, friends, grandparents, and employers can also contribute to the child’s account!
When it is time to use my Alfond Grant, how do I withdraw the funds?
Withdrawal of the Alfond Grant funds can be made using a Withdrawal Form. Your account servicer may allow other options for withdrawal, such as a verbal withdrawal request by phone. The Alfond Grant can be paid directly to eligible institutions of higher education, registered and certified apprenticeships, and other recognized postsecondary credential programs for qualified postsecondary expenses.
Withdraw the Alfond Grant, including any earnings, first. The use of grant funds is more restrictive, so consider using these funds before your own NextGen 529 contributions and earnings.
Learn more about making withdrawals from your Direct Account.
Learn more about making withdrawals from your Connect Account.
Your financial advisor can help you with a withdrawal from your Select Account.
Explore + Plan
What Do I Do Now?
What can’t you do! The Alfond Grant and other money you may have saved helps give your student opportunities to learn after high school. But how can you plan for the future? Here are some resources that can help you and your student prepare for what’s next.
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. The Alfond Grant may lose value.
2Grants for Maine Residents are linked to eligible Maine accounts. An Alfond Grant recipient is eligible to receive the $100 Initial Matching Grant if the minimum required initial contribution is made before the beneficiary’s first birthday. 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.
3To 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 such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local income taxes. Upon withdrawal, the Alfond Grant will be paid only to institutions of higher education, registered and certified apprenticeships, and other recognized postsecondary credential programs.
