If you’re planning a withdrawal from your NextGen 529 account to cover upcoming education expenses, a little preparation can go a long way. Here are some tips to help ensure the process goes smoothly.
Use Maine Matching Grants First
If you’ve received Maine Matching Grants, those funds must be sent directly to your student’s higher education institution. Many schools use a special mailing address just for 529 plan payments—so it’s a good idea to confirm where the check should go. Be sure to include your student’s ID number with the request as well. This small step can help prevent delays and make sure the payment is credited quickly and accurately to your student’s account. To request a withdrawal, you can:
Complete a Withdrawal Form, or
Call the NextGen 529 Call Center at 833-336-4529
When submitting the request, don’t forget
Many schools have a separate mailing address for 529 payments—double-check this with the school.
Always include the student ID number so the payment can be applied quickly and accurately.
Covering More Than Tuition
Maine Matching Grants can also be used for qualified education expenses beyond tuition, such as books, supplies, and equipment. Because these items are often purchased outside of the student account, it’s worth checking your school’s refund policy. In many cases, refunds are sent directly to the student.
Other Eligible Uses
NextGen 529 withdrawals can also be used for:
Student loan repayment
K–12 tuition
Qualified apprenticeship programs
For these types of expenses, the withdrawal must be sent directly to the account owner, who then pays the provider. Be sure to keep detailed records to show that the withdrawal was used for an eligible expense.
Extra Support for Student Loan Borrowers
Managing student loan debt in addition to education savings? The Finance Authority of Maine (FAME)offers free one-on-one federal student loan counseling and a variety of resources designed to support Maine borrowers. You can learn more—and share these resources—by visiting FAME’s Student Loan Resources.
Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing.
Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.