AUGUSTA -- No immediate changes to the state's college-investing fund are expected since Merrill Lynch was sold to Bank of America, the head of the Finance Authority of Maine said Thursday.

The sale, expected to be complete early next year, will mean Bank of America would take over as manager of Maine's NextGen College Investing Plan, said Beth Bordowitz, acting chief executive officer of the Finance Authority of Maine.

"There should be very little change," she said. "We're going to stay on top of this as much as we can. It will be our goal to have as little impact as possible on account holders."

The finance authority began NextGen in 1999. Commonly called a "529 plan" because of its section in the tax code, the fund gives parents, grandparents and others a way to save money for future educational expenses.

Each state works with one or more program managers; Maine has worked with Merrill Lynch since the program began.

On Sunday, Merrill Lynch announced it would be sold to Bank of America -- just one of the surprises that greeted investors this week, as stocks tumbled more than 400 points on Monday and Wednesday before rebounding Thursday.

State Treasurer David Lemoine, who serves on the finance-authority board, said it's too early to tell just how the transition from Merrill Lynch to Bank of America will play out.

The New York Times reported earlier this week that Merrill's brokers will likely be combined with Bank of America's wealth advisers.

"We haven't seen it mapped out yet," Lemoine said.

Money from Maine's NextGen fund can be used at most accredited post-secondary schools in the United States and abroad for tuition, room, board, books and supplies. Earnings are not subject to federal taxes when used for qualified expenses.

Bank of America serves as program manager for similar plans in a few other states, including South Carolina and at least one program in New York, Bordowitz said.

NextGen currently has 200,000 accounts, with 9,336 of those held by Maine residents. Total assets are $5.3 billion.

These types of plans continue to be increasingly popular among parents as the cost of higher education climbs. Bordowitz said the money often helps reduce the amount of debt students will have when they complete their education.

Parents who use the plan can invest their money in different funds, depending on the age of their child and how aggressive they want to be.

Bordowitz said in these uncertain financial times, it's important to remember that, for many parents, these are investments for the next 15 to 18 years.

"With most investments, with that time horizon, you need to be thinking long term," she said.

Susan Cover -- 620-7015

scover@centralmaine.com