FAME Announces Billion-Dollar Milestone for College Savings Plan
The Finance Authority of Maine (FAME) announced today that the number of Maine-based NextGen 529® accounts now exceeds 80,000, with more than $1 billion in education savings assets, marking a significant milestone for Maine families planning for education after high school. Those assets include family contributions, Alfond Grants, Maine Matching Grants and investment earnings on these accounts.
“FAME has been honored to administer Maine’s NextGen 529® plan since its inception 27 years ago, and it is one of the biggest plans in the country, totaling more than $18 billion nationally,” said Carlos Mello, FAME’s CEO. “This $1 billion milestone is evidence of Maine families’ and the state’s commitment to ensuring that Maine people have the opportunity to reach their higher education goals and aspirations.”
When used for qualified higher education expenses, a NextGen 529 account allows families to earn investment growth that is free from federal and Maine state income tax—a benefit that can add up to significant savings over time.
“This is an incredible accomplishment,” said Greg Glynn, a Maine dad who opened a NextGen account 15 years ago when his daughter Kelsey was born. Since then, Greg and his wife have been contributing to the account, which allows them to take advantage of a variety of the plan’s matching grants.
“That is why we have hosted a yard sale for several summers to help raise money for her college fund… so that we can benefit from the matching grants, which can really boost your savings. And, my wife and I want Kelsey to be part of this process because we know it will mean more to her. We hope one day she can use her NextGen account to go to the college of her dreams.”
The milestone also reflects the impact of the Alfond Grant, which has helped encourage education savings for Maine children since 2008. Today, more than 180,000 Maine children have received an Alfond Grant, helping families begin planning and saving earlier for future education opportunities. The Alfond Grant has become a cornerstone of Maine’s efforts to increase educational aspirations and readiness among young people across the state.
“When Harold Alfond created the Alfond Grant, his vision was simple but powerful: every Maine child should have hope for the future and a path to education after high school,” said Colleen Quint, president and CEO of the Alfond Scholarship Foundation. “Reaching this milestone reflects the power of partnership. The Alfond Scholarship Foundation’s investment in Maine children, combined with the commitment of families who have built on that foundation through NextGen 529, has helped create a lasting impact for young people across our state.”
To learn more about the advantages of a NextGen account and how to open one, visit NextGenforME.com.
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.
FAME is a quasi‑independent state agency that provides innovative financial solutions to help Maine people and businesses pursue educational and economic opportunities.
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