Ten members constitute the College Savings Plans of Maryland Board. Five are appointed to four-year terms by the Governor. Five serve ex officio (Code Education Article, secs. 18-1901 through 18-1916).
Maryland Prepaid College Trust. The Maryland Prepaid College Trust was established by the Board in 1997 to hold investments. Under the Trust, Maryland and District of Columbia residents at the time an account is opened may prepay tuition for a college education. At Maryland public colleges and universities, the Trust is designed to pay the equivalent of the in-state student tuition and mandatory fees. This is accomplished through the purchase of tuition contracts by which the purchaser enters into a contract with the Board and makes payments in advance of enrollment. Benefits also may be applied to the tuition costs at any accredited private or out-of-state college (Code Education Article, Sec. 18-1903).
Children from newborn through 12th grade may participate but accounts must be open for at least three years before tuition benefits can be paid. There is an enrollment period each year although accounts for newborns may be opened at any time. The current enrollment period extends from December 4, 2014 to April 15, 2015.
Maryland Broker-Dealer College Investment Plan. In 2008, the Maryland Broker-Dealer College Investment Plan was authorized (Chapter 548, Acts of 2008). When the Plan is established, Maryland families will be able to invest in college savings plans using private investment advisors. From their taxable income, Maryland taxpayers will be allowed to deduct plan contributions for purposes of State and local income taxes (Code Education Article, secs. 18-19B-01 through 18-19B-08).
Maryland College Investment Plan. The Maryland College Investment Plan formed in July 2000 (Chapter 494, Acts of 2000). To save for college, contributors establish a mutual fund investment account on behalf of a qualified designated beneficiary. The Plan is managed and distributed professionally through a contract with the State and any investment earnings in an account are exempt from State and federal tax if used for tuition, housing, books, and other eligible higher education expenses. Maryland residents and nonresidents of any age may participate in the Plan. Enrollment is open year round (Code Education Article, secs. 18-19A-01 through 18-19A-07).
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