NextGen scholarships start collegiate savings

    The Alfond Scholarship Foundation (Foundation) continues its commitment to helping all Maine babies attain education beyond high school through the Harold Alfond College Challenge.  The program provides a $500 grant to start a NextGen College Investing Plan® (NextGen®) account for every Maine resident baby born on or after January 1, 2009 and over 1,400 Maine babies are already enrolled. Babies born at MaineGeneral Medical Center in Augusta and Waterville in 2008 are also eligible but all babies must be enrolled by their first birthday.     
    The Finance Authority of Maine (FAME), administrator of NextGen, Maine’s Section 529 plan, and the Foundation are hosting a “Casting Call for Future Faces of Maine” in October at shopping malls in Auburn, Bangor, Presque Isle and South Portland (see details below), where new parents will receive free portraits of their babies.  Parents can receive information about the $500 grant and complete the enrollment form with assistance from FAME staff at these events.
    There are no income limits and no additional contributions are needed to receive the grant. However, families are encouraged to add to the college savings.  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.
    “Mr. Alfond strongly believed that Maine’s economy and individual aspirations can flourish with the pursuit of higher education,” said Elizabeth Vanderweide, program manager for the Harold Alfond College Challenge.  
     “We believe that families and communities benefit from having more educated citizens.  As our economy becomes increasingly based on technical knowledge and skills, we need to ensure that Maine people can get these jobs, create new industries that provide a solid standard of living, and be in a position to compete in the international marketplace.”
    Mrs. Mary Anne Buck of Mapleton is a firm believer in making long-term contributions toward higher education.  She has opened NextGen accounts for all of her grandchildren.  Her 14th grandchild received the $500 grant. While Mrs. Buck does buy them gifts for special occasions, she prefers to concentrate on their future.  
    “I am happy to help with my grandkids’ college savings plans each year.  Although they are not large contributions, I know the money can add up over time and will be there when they need it,” Mrs. Buck said.
    According to 2007 data from the U.S. Census Bureau, those who complete an associate’s degree or bachelor’s degree earn more than those with only a high school diploma.  On a national basis, median annual earnings based on degree are as follows:  high school diploma, $32,500; associate’s degree, $42,000; bachelor’s degree, $53,000.  In Maine, there is a $300 wage difference in average weekly income between a high school graduate, who averages $606 per week, and a worker with a bachelor’s degree who averages $901 per week.  
    A 2005 U.S. Department of Education survey of Maine public high school students indicated that nearly 72 percent planned to go on to higher education.  But, according to the National Center for Education Statistics, costs increased 30 percent between 1998 and 2008 at public institutions and 23 percent at private schools after adjustment for inflation.  In the face of rising tuition, financial planning helps reduce the challenge of financing a degree or professional certification.
     “Every Maine baby deserves this head start on his or her future and every Maine parent should take advantage of this opportunity to invest in education,” said Henry Bourgeois, President of the Alfond Scholarship Foundation.  “We are pleased to fulfill the late Harold Alfond’s dream by opening doors to the future for Maine’s youngest citizens with this legacy gift to Maine.”