Updated College Invest First Step and Matching Grant Program Information

Two days ago I wrote about the College Invest Matching Grant Program, which also referenced an earlier post about the First Step Program. As a result of some questions I was asked by readers (thanks!), I dug a little deeper into the terms and conditions and then also called College Invest to confirm some important details that I had missed before.

First Step Program

The information I wrote previously was accurate, but perhaps a bit misleading and not as complete as it could’ve been. Specifically, I had not made it clear that as long as you applied for the First Step Program before your child’s fifth birthday (and the child has to have been born after January 1, 2020), they not only would receive the $100 gift but would receive up to $500 in matching contributions each year for the next five years even if that took them past the age of five. So, for example, if you apply when your child is three then you could receive matching contributions up to $500 each year through age seven (five years total). It’s also important to note that this is five consecutive years from when you start. The account owner must also be the parent of the eligible recipient. (Other folks like grandparents, of course, could contribute via the parents as long as a parent is the account owner.)

Matching Grant Program

Again, the information I wrote was accurate, but not as clear as it could’ve been. Unlike the First Step Program, the child has to have been born before January 1, 2020. As long as they are under the age of nine, they can apply. (Which means they must have been born between 2014 and December 31st, 2019, and if born in 2014 they haven’t yet reached their ninth birthday in 2023.) Once accepted, they can then also apply again in the future (you have to apply each year) up until five awards have been awarded before the age of 18 (they do not have to be five consecutive years). There is also no guarantee that funds will be available in subsequent years for the program, and the criteria can change each year (specifically the income guidelines and, of course, your income can change and might make you ineligible for future matches). The account owner also must be the parent of the eligible recipient. (Other folks like grandparents, of course, could contribute via the parents as long as a parent is the account owner.)

One Program Only

An eligible recipient can participate in only one of these programs. So if someone has received First Step awards they cannot also receive Matching Grant awards. When I wrote before it wasn’t clear to me that the matching grant program was only for those born before January 1, 2020.

• So, if your child was born between today’s date in 2014 and December 31, 2019 and you meet the income requirements, you should apply for the Matching Grant program (now!). And if you’ve previously received the Matching Grant, you have to reapply each year until you receive five awards or reach age 18.
• If your child was born on or after January 1st, 2020, you should apply for the First Step Program (now, and there is no income requirement).
• For either program you should make sure to contribute at least $500 each year in order to receive the full match.

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I apologize for any confusion from the previous posts. To the best of my knowledge, this now clarifies both grant programs and is accurate (at least for this year, program qualifications can change from year to year).