The presenters for the core session on "Practice" were Carl Rist of CFED, talking about the lessons of the SEED project, and Elizabeth Vanderweide of the Finance Authority of Maine (FAME), talking about Maine's new universal college savings account program.
I already knew many of the particulars of SEED from CFED's great publications and videos about the project, but I somehow knew nothing about Maine's new initiative. It was fascinating to hear about how the Dexter Shoe Company mogul and philanthropist Harold Alfond was inspired to help raise college aspirations for all children in Maine by pledging $500 to every newborn child in the state for whom a 529 account is opened, with no obligation upon the family to put any other funds into the account. That's potentially 14,000 children per year, or $7 million per year, coming from the late Mr. Alfond's Foundation to support this experimental program. 2009 is the first year in which the program is available to every newborn in the state.
They recognize that it still won't be an easy sell to try to get every newborn enrolled when there is no default mechanism. Their 2009 goal is to get 40% of eligible families to request the application, and 25% of all eligible families to open the accounts in which they can receive the free $500 for college. The families only have 1 year from the day of the child's birth in which to open the account, so FAME is working hard on communications and outreach to spread the word via maternity wards, physician practices, and mailings to addresses supplied via birth records (3 mailings to every family with a newborn).
One of Elizabeth's goals is to simplify the enrollment process so there are fewer barriers to entry. Ideally, they'll get to the point where they can capture a full application (in simpler format) from every mother right in the maternity ward, and then just have to collect the social security number as soon as possible after the family obtains it from the social security administration.
I can't wait to hear more about the outcomes of that initiative in the years ahead.
I already knew many of the particulars of SEED from CFED's great publications and videos about the project, but I somehow knew nothing about Maine's new initiative. It was fascinating to hear about how the Dexter Shoe Company mogul and philanthropist Harold Alfond was inspired to help raise college aspirations for all children in Maine by pledging $500 to every newborn child in the state for whom a 529 account is opened, with no obligation upon the family to put any other funds into the account. That's potentially 14,000 children per year, or $7 million per year, coming from the late Mr. Alfond's Foundation to support this experimental program. 2009 is the first year in which the program is available to every newborn in the state.
They recognize that it still won't be an easy sell to try to get every newborn enrolled when there is no default mechanism. Their 2009 goal is to get 40% of eligible families to request the application, and 25% of all eligible families to open the accounts in which they can receive the free $500 for college. The families only have 1 year from the day of the child's birth in which to open the account, so FAME is working hard on communications and outreach to spread the word via maternity wards, physician practices, and mailings to addresses supplied via birth records (3 mailings to every family with a newborn).
One of Elizabeth's goals is to simplify the enrollment process so there are fewer barriers to entry. Ideally, they'll get to the point where they can capture a full application (in simpler format) from every mother right in the maternity ward, and then just have to collect the social security number as soon as possible after the family obtains it from the social security administration.
I can't wait to hear more about the outcomes of that initiative in the years ahead.
Leave a comment