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If you have a child planning to attend school in Maryland, you might want to think about the Maryland pre-paid college trust program. Some families have found it to be highly beneficial, and you might as well. Read the details below, and, as usual, let me know if you have any questions you feel were not properly addressed!
-- 1999 Enrollment Period February 10 - June 10, 1999 Many parents today are faced with uncertainty when they begin thinking about how they will be able to pay for college when their children are ready to go to college. College tuition prices increase every year, making financial planning difficult. But Maryland offers a new state program to assist parents: the Maryland Prepaid College Trust. The Maryland Prepaid College Trust was created by Governor Parris N. Glendening and the Maryland General Assembly to provide parents, grandparents, and others with an affordable way to prepay a child's college education with contract prices based in part on today's tuition and mandatory fees at Maryland's public colleges. If the child attends a Maryland public college, the Maryland Prepaid College Trust will pay the full tuition and mandatory fees. If the child decides to attend a private or out-of-state college, the program will pay that college a weighted-average tuition based on the average tuition costs at the Maryland public colleges weighted by the number of full-time in-state students attending each college. If the cost of a private or out-of-state college were higher than the weighted average, the parent or student would be responsible for the difference. The prepaid program also offers significant tax benefits, including a Maryland State income tax deduction. Maryland residents can deduct up to $2,500 per year until they have deducted the full amount of their contribution. They can also multiply their deduction by the number of contracts purchased. Additionally, there are no Maryland State income taxes on the earnings when the child goes to college. The federal government taxes the earnings at the student's tax rate, not the parent's tax rate. The program is open to children currently in the ninth grade or younger. The program offers tuition plans you can tailor to your child's needs: University Plan -- 1, 2, 3, 4, or 5 years in-state tuition and mandatory fees at a Maryland public 4-year college or university. Two-Plus-Two Plan -- 2years tuition and mandatory fees at a Maryland public community college and 2 or 3 years at a Maryland public 4-year college. Go To Page: 1 2 |
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