Since 2008, the Finance Authority of Maine (FAME) and the Alfond Scholarship Foundation (ASF) have worked together to enroll over 10,000 Maine babies in the Harold Alfond College Challenge (HACC). ASF has contributed more than $5 million to Maine resident babies’ college investing accounts. The program’s goal is to award every eligible Maine baby a $500 grant to start investing early for higher education in the NextGen College Investing Plan (NextGen).
The grant funds 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. Families just need to enroll their child in the program by the baby’s first birthday.
FAME and ASF recently evaluated enrollment rates on a county-by-county basis and conducted a statewide parent survey to better understand awareness levels and why families choose to enroll or not. There are no income requirements and families never need to add their own money (although they are encouraged to invest in their own child’s future). Since the statewide launch in 2009, 36.5 percent of all eligible babies born from Jan. 1, 2009 to July 31, 2010 were enrolled before their first birthday deadline.
This year’s county-by county enrollment report revealed that, as anticipated, the urban, more densely populated areas in Cumberland, Kennebec, Penobscot and York counties have stronger enrollment rates. U.S. Census Bureau data shows these areas typically have higher income rates and greater numbers of individuals who have attended college. But communities don’t need higher income levels and education attainment levels to succeed; community dedication and family aspirations can increase the rate at which babies are enrolled.
“We were pleased to see Aroostook County with the fifth-highest enrollment rate,” said Elizabeth Vanderweide, program manager for the Harold Alfond College Challenge. “Aroostook County is extremely rural with average household income averaging the second-lowest in the state according to U.S. Census Bureau data. That same data also shows that fewer than 16 percent of all adults in Aroostook County have a bachelor’s degree, the third-lowest ranked county in the state. These statistics demonstrate that community efforts are working well in northern Maine and across the state. We’ve found that parents, no matter their socio-economic status, want to do right by their children by giving them the opportunity to attend college.”
The parents of Haley Borden, Marisa and Josh Borden of Presque Isle, heard about the grant at their first visit with the OB/GYN practice at The Aroostook Medical Center (TAMC). Marissa’s immediate response to the staff was, “Is this for real?” Both parents attended college and hope that by starting to invest early for Haley, she will be encouraged to go to college when she is old enough.
“We can hardly live (on what we make) now and we wondered what we would do when it was time for her to go to college,” Marisa said. “We wondered if we would be able to afford it especially with costs continuing to go up. Having the opportunity to start now and potentially watch it grow blows my mind. I would encourage parents to get their hands on an application today and take advantage of this incredible opportunity to start now — it is $500 you will not have to come up with on your own.”
The Maine medical community, particularly hospitals, has played a significant role in helping to raise awareness for the grant program. FAME tracks hospitals’ progress on informing families about the program by counting parent inquiries and enrollments of eligible babies per hospitals’ births, and shares this data with the hospitals. According to parents surveyed, 54 percent learned about the program through their hospital, 29 percent through their doctor’s office, and 27 percent through friends and family.
TAMC has been successful at achieving enrollments. According to Andy Soucier, director of communications and development at TAMC, “High-ranking executives at TAMC decided it was important to integrate the Harold Alfond College Challenge program into the hospital’s daily work. In fact, the hospital’s former chief executive officer especially believed in the program’s mission and thought it was important to make parents aware since not everyone in a rural area has the opportunity to go to college and continue their education. He wanted to be a leader in making this happen in Aroostook County.”
According to Vicki Belanger, the OB practice manager and champion of the Harold Alfond College Challenge at TAMC, “There are many opportunities to raise awareness with new parents. Our process begins at the OB practice with the first new patient visit. When expectant parents walk into our offices, they see a bulletin board dedicated to the program with many local faces spotlighted. Additionally, we make parents aware of the program at admission for delivery, discharge and at the post partum check-ups — at two and six weeks — following delivery. During each of these opportunities, we provide an overview of the program and encourage them to fill out the inquiry forms.”
Despite high awareness levels among parents, challenges in completing the application remain. In some instances, parents believe they have completed the application when they provide their information on the inquiry form at the hospital and never take the important step of filling out the NextGen account application. Some parents say they are too busy and often forget to fill out and submit the application within the one-year period. And for some, the application seems too difficult to complete on their own.
FAME and ASF are working hard together to remove these barriers so more parents enroll before their child’s first birthday and before the opportunity expires. Events called the “Future Faces of Maine Casting Calls” have been developed to raise awareness and make enrollment easier for parents. Held six times a year at various locations across the state, these events are designed to give parents an opportunity to meet with program staff that can assist them in completing the NextGen account application. Families also receive a free, professional photograph of their baby. In March of this year, the application was made available online. The application can be accessed online through www.500forbaby.org.
Over the past two years, casting call events have attracted nearly 2,500 Maine babies and assisted with the opening of 1,800 NextGen accounts. Casting calls played an important role in enrollment growth in Aroostook County, attracting more than 12 percent of those residents who are eligible.
Today, more than 25 percent of all families enrolled have chosen to contribute their own funds to NextGen accounts to further help their children prepare for college. Additional matching grants have also been introduced by FAME to encourage families to add their own contributions.
“September is National College Savings Month and what better way to celebrate in Maine than to encourage a parent of a Maine child under the age of one to complete an application to receive the $500 Harold Alfond College Challenge grant?” said Vanderweide.
Families may request NextGen application materials be mailed to them directly, complete an application online through www.500forbaby.org or contact their financial adviser. Any questions about the Harold Alfond College Challenge Grant or the NextGen College Investing Plan should be directed to FAME 1-800-228-3734 or info@500forbaby.org.
