Maine infants receive $500 college nest egg

Diverse Issues in Higher Education, Jan 10, 2008

If you give birth in the state of Maine, your infant will get $500 in a tax-advantaged college savings account, announced the Harold Alfond College Challenge in December. The program will start next month at two hospitals in central Maine and expand throughout the state by Jan. 1, 2009.

This initiative will cost more than $7 million annually, according to the Harold Alfond Foundation. Alfond founded Dexter Shoe Co. and sold it for $420 million 14 years ago. He died in November at age 93. A spokesman for the foundation said the money is intended as "a hook" to get parents to set up the accounts and remove college costs as a barrier to higher education for thousands of the state's residents.

DIVERSE DIGITS

Top 5 States With Highest Average Undergraduate Debt Levels

Minnesota                  $23,375
Connecticut                $23,469
Vermont                    $23,839
New Hampshire              $24,800
District of Columbia       $27,757