Section 457-611-18 - USE OF MAINE ADMINISTRATION FEE The Authority may use any amounts received from the Maine Administration Fee charged to participants first to pay all costs of program administration, including the maintenance of a reserve for administrative expenses in any amount the Authority may determine to be necessary from time to time, and for such other purposes as are allowed by the Program Act. The Authority may use the remaining amounts to fund each of the following programs: the fee rebate or waiver program; the matching grant programs; and the scholarship programs.
A.Matching Grant Programs1) The Authority may award matching grants to Maine accounts to encourage the opening of accounts, to encourage contributions to accounts, and/or to encourage the use of automated account funding service options. The Authority shall determine the amount of matching grants from time to time and may establish terms and conditions for receiving and using matching grants, including but not limited to minimum contribution amounts, limitations on numbers of accounts eligible per beneficiary, maximum annual or account lifetime grant amounts, limitations on accounts eligible to receive matching grants, restrictions on the use of matching grants, and timing of grant awards.2)[Repealed effective April 7, 2013]3)[Repealed effective March 6, 2003]3A)[Repealed effective March 6, 2011]3B)[Repealed effective April 7, 2013]4) Matching Grant Programs Generally b)[Repealed effective April 7, 2013]c)[Repealed effective April 7, 2013]d) Although allocated to a particular account, matching grant funds will remain the property of the Authority until withdrawn for qualified higher education expenses at an institution of higher education. Matching grant funds, including earnings on matching grant funds eligible for use should be fully used before other contributions to the account or earnings thereon are used for qualified higher education expenses at an institution of higher education. To use matching grant funds, the participant must certify that such funds are being used for such qualified higher education expenses in such manner as required by the Authority.e) All matching grant funds will be invested at the discretion of the Authority. The participant has no ability to direct the investment of matching grant funds.f)[Repealed effective April 7, 2013]g) In the event a participant is no longer eligible to receive a matching grant because the account is no longer a Maine account, all matching grants allocated will remain allocated to that account, but that account will not be eligible to receive future matching grants, unless the account becomes eligible again.h) The Authority reserves the right at all times to require evidence of eligibility to receive a matching grant and may conduct audits to determine eligibility without obtaining additional consent from the participant after a matching grant has been allocated to an account. In the event a subsequent audit reveals that the matching grant was obtained through the submission of erroneous information, the Authority may immediately revoke the matching grant. If matching grant funds have been withdrawn prior to the determination that the application or request for withdrawal contained erroneous information, the Authority may deduct the amount so obtained from any funds remaining in the account.i) Matching grant funds, including earnings, if any, will be returned to the Authority in the following circumstances:(i) The account is closed;(ii) The account is transferred to another beneficiary; or(iii)[Repealed effective March 6, 2011](iv) The amount remaining in the account after the participant makes a nonqualified withdrawal is less than the amount that had been matched.(v)[Repealed effective April 7, 2013]j)[Repealed effective April 7, 2013]k)[Repealed effective March 6, 2011]l)[Repealed effective April 7, 2013]B.Fee Rebate or Waiver Program1) The Authority may rebate to Maine accounts or provide a waiver of an amount approximately equal to the Maine administration fee charged to that account as measured on the last business day of each month for each month of the previous calendar year. Such amount will approximately equal the Maine administration fee, subject to any minimum rebate or waiver amount which the Authority may establish. Any fee rebate or waiver will be applied to the account annually. Only accounts with an account balance of $1000 or more and an investment option subject to the Maine administration fee at the end of the calendar year are eligible to receive a fee rebate or waiver.C.Scholarship Programs. The Authority may establish one or more program accounts to fund scholarships to Maine beneficiaries. 1)Access Scholarshipsa) Scholarships may be awarded to individuals attending an institution of higher education: (1a) who, are attending on a part-time basis, as established by the policy of the institution of higher education, and file a Free Application for Federal Student Assistance (FAFSA) on or before May 1 (or the first business day after May 1); or(1b) who are attending full-time or on a part-time basis as established by the policy of the institution of higher education and file a FAFSA after the first business day after May 1;(2) who are matriculated as undergraduates;(3)[Repealed effective July 13, 2004](4)[Repealed effective June 5, 2006](5) who are residents of Maine and have graduated from an approved secondary school (or matriculated at an approved post-secondary school prior to high school graduation) or successfully completed a general education development examination or its equivalent;(6) who, if filing a FAFSA after May 1, have not previously received a Next Gen Access Scholarship or a Maine State Grant award and are entering students at the institution of higher education attended by the students; and(7) who have an expected family contribution that is not greater than the applicable expected family contribution that is set annually by the Authority for individuals who file a FAFSA on or before May 1 (or the first business day after May 1) and a lower expected family contribution for individuals who file a FAFSA after the first business day after May 1.b) Scholarships may be in an amount for full-time students and for part-time students set annually by the Authority, not to exceed the beneficiary's cost of tuition, fees, books, supplies and required equipment at the institution of higher education attended by the beneficiary.c) Scholarships maybe awarded to Maine students attending out-of-State institutions of higher education located in states that provide grants to residents of that state which may be used at Maine institutions of higher education.d)[Repealed effective June 5, 2006]e) If a recipient of an award withdraws from an institution and the student is entitled to a refund of tuition, fees, or other charges, the institution shall make a repayment of the award directly to the Authority.2)Special Opportunity Scholarships. The Authority may designate a NextGen Scholarship account to be used to provide scholarships to individuals in Maine's incumbent workforce.These scholarships may be used in a program for training or attaining specialized skills in a program that may lead to a certificate or degree. The Authority may require that an employer provide matching funds. The designation of each situation as eligible will be made by the chief executive officer.3)Special Occasion Scholarships. The Authority may designate a NextGen Account in an amount to be determined annually by the members of the Authority to be used for scholarships in an amount not to exceed $1000 per student to be awarded by the Authority.4)Enhanced Need Scholarshipsa) Scholarships of up to an amount that is set annually by the Authority may be awarded to individuals with an expected family contribution that is greater than the greatest eligible expected family contribution to receive a Maine State Grant award with priority given to the next lowest expected family contribution as determined by the Authority.b) Scholarships may be awarded to Maine residents who have graduated from a secondary school or the equivalent who have been accepted into an institution of higher education pursuing a first baccalaureate degree.c) The award of the scholarship must not cause the recipient's financial assistance to exceed the cost of attendance as published by the institution of higher education the recipient will attend.d) Scholarships will be awarded based on the priority established in Section 18. C(4)(a) up to an aggregate amount determined by the members of the Authority's board of directors annually.5)Gold Star Scholarshipsa)Eligibility(1) Any dependent child of a member of the U.S. armed services killed while deployed in support of combat operations in Iraq or Afghanistan during such period of time as may be determined by the Authority from time to time, as certified by the State of Maine Bureau of Veteran's Services, provided the child is a resident of Maine on the date of the parent's death and under the age of 22;(2) The family of the eligible child must provide any information the Authority needs to open the account on or before close of business on such date as may be set by the Authority;(3) The child must be otherwise eligible to be the beneficiary of an account;(4) For purposes of eligibility for a Gold Star Scholarship, the Authority will determine whether the deceased parent was a resident of the State based on the facts of that individual's situation. In making that determination the Authority will consider: (a) Whether the deceased parent lived in Maine prior to active duty in the United States armed services;(b) Where the deceased parent paid taxes; and(c) Where the deceased parent maintained a driver's license. For purposes of (a) and (b) above, the Authority will take into consideration whether and when the deceased parent was deployed prior to deployment to support combat operations in Afghanistan or Iraq.
b)Amount of Scholarship. A Gold Star scholarship account will be opened by the Authority for each eligible child within 60 days of the Authority learning of the eligibility of the child and receiving the information necessary to open the account. For the initial round of scholarships, the Authority shall allocate an amount of up to $250,000 to eligible accounts, with the amount awarded to each account based on the age of the child who is the beneficiary of the account, such that each account beneficiary will receive an approximately equal amount on the beneficiary's 18th birthday, assuming the investment return of the principal plus portfolio (or other substantially equivalent guaranteed return or stable value investment option, in the event the Authority no longer offers the principal plus portfolio) as of the day of the investment in making the present value calculation. For subsequent rounds of scholarships, the amount awarded to each eligible account shall be based on the age of the child who is the beneficiary of the account such that the value of the account at the time of the beneficiary's 18th birthday is an amount determined in the discretion of the Authority for that round of scholarships, assuming the foregoing investment return. If the child is 18 years or older, the account will be fully funded at inception.c)Use of funds.The amounts contributed to each Gold Star Scholarship account, will be available to the beneficiary only upon certification that the funds sought to be withdrawn will be used for qualified higher education expenses at an institution of higher education and may not be used for amounts in excess of the beneficiary's cost of attendance. The Authority may undertake investigation to assure that the Gold Star Scholarship recipient is enrolled in an institution of higher education.d)Termination of Accounts. In the event there has been no request for withdrawal of funds from a Gold Star Scholarship account prior to the beneficiary's 29th birthday, the account shall be terminated as of the beneficiary's 29th birthday. If the beneficiary has withdrawn funds from the account prior to the beneficiary's 29th birthday, the beneficiary may continue to withdraw funds until the beneficiary's 35th birthday, at which time the account will be terminated. In the event the account is terminated while funds remain in the account, all remaining funds shall be returned to the authority to be used for program purposes.94-457 C.M.R. ch. 611, § 18