Resources for Existing Account Owners

You can use your Maryland Prepaid College Trust benefits to pay for a full-time (or half-time) course load for the number of semesters or years of undergraduate education specified in the tuition plan purchased. Excess benefits can go towards room and board, and other qualified higher education expenses (e.g. books, supplies, fees, etc.).

You can start using your benefits beginning with the fall semester of the Projected Enrollment Year (PEY) you have purchased; however, the Prepaid College Trust contract must be in effect for at least three years before benefits will be paid.

Benefits Payable

Maryland Public Colleges: If your beneficiary attends a Maryland 4-year public college as a full-time student, we will pay the full in-state tuition for a University Plan. If your beneficiary attends a 2-year Maryland community college, we will pay the full in-county tuition for a Community College Plan.

Private or Out-of-State: If your beneficiary attends an eligible institution that is private or out-of-state as a full-time student, we will pay the actual tuition each semester (or the equivalent) up to a maximum of one half of the weighted average tuition in the tuition plan you purchased or your minimum benefit, whichever is greater. If your tuition for the private or out-of-state eligible institution is less than the weighted average tuition, you will only receive the tuition. If tuition is less than your minimum benefit however, you may submit documentation of qualified higher education expenses and receive reimbursement up to your minimum benefit.

Summer/Winter Courses: In order to use benefits for summer/winter term courses, you must have excess benefits and your beneficiary must be enrolled on at least a half-time basis as defined by the college.

The WAT is calculated as follows: for 4-year eligible Institutions — dividing (A) the in-state tuition at each 4-year Maryland public college multiplied by the number of full-time equivalent in-state students enrolled at such 4-year Maryland public college, added together by (B) the total number of full-time equivalent in-state students enrolled at all 4-year Maryland public colleges. The WAT applicable to community colleges is calculated by a similar method using in-county tuition and enrollment.

The WAT for the 2024-2025 academic year is $11,127.12 for 4-year public colleges and $4,980.33 for community colleges.

1. Log in to your Prepaid College Trust account
2. Hover over the “Benefits” tab and select “Benefit Claims” from the drop down menu.
3. Enter the information from the invoice detailing the tuition and mandatory fee charges for your student.
4. Upload a copy of the invoice and any other required documentation for our records.

Once you submit your request, we will verify and then process the benefit claim payment to your requested recipient within five to seven business days.

The Trust will not pay for more than 15 credit hours for each semester (or the financial equivalent). The Trust will pay for a maximum of two semesters of mandatory fees (or the equivalent) for each year of benefits purchased for a beneficiary. If tuition, fees, or qualified higher education expenses are more than the benefits paid under your contract, you or your beneficiary is responsible for the difference.

Minimum benefits means payments duly made under your contract, minus operating expenses, plus a certain rate of return. See Article V - benefits of the disclosure statement for further details on your minimum benefit calculation.

If the total of tuition at an eligible institution is less than the minimum benefit, you may use the difference to pay for other qualified higher education expenses such as room and board and books.

A Medallion Signature Guarantee is a legally binding endorsement that ensures that your signature is genuine and that the financial company issuing the guarantee accepts liability for any forgery. MedallionSignature Guarantees can be obtained from some banks, savings institutions, and broker-dealers. While the State Treasurer's Office reserves the right to require a Medallion Signature Guarantee at any time, it must be included on applicable forms in the following instances:

• for all refund requests;
• for payment requests of $25,000 or more;
• when there is a request to send a check to an address not on file

As of June 1, 2023, prior to using any benefits and subject to the limitation described below, you may convert your contract from one tuition plan to a different tuition plan. Upon each request for a contract conversion, the contract will be revalued to determine whether additional contract payments would be required or if a refund should be made. Only conversions that do not result in the payment of additional contract amounts will be allowed to proceed.

Please be advised that a conversion may have tax consequences. Please consult with your tax professional for specific details.

To convert you plan to another type, complete section 7 and 9 of the Account Maintenance Form and log in to your account to upload the completed form for processing.

After we've processed your documents (typically up to 5 - 7days after submission), you can check your benefits payment information in just three clicks:

1. Log in to your online account
2. Select the Benefits tab
3. Select Claims History

Additionally, you will receive an email confirmation when your request is submitted and the issued benefits claims payment will be sent to your requested recipient along with a stub confirming the principal and earnings information.

Maryland taxpayers receive a maximum $2,500 subtraction from their Maryland adjusted gross income annually per account for payments made to the Prepaid College Trust. Payments made in excess of $2,500 per account in a single year may be carried forward and subtracted from your Maryland adjusted gross income in consecutive future years until the full amount contributed to the account has been subtracted, subject to the $2,500 annual limit.

Any Maryland taxpayer, including yourself as the account holder, along with other individuals such as a relative or a friend, who make contributions to your Account may be eligible to take the income subtraction. Consult with your tax professional.

For additional information, please refer to www.marylandtaxes.gov.

When you are ready to rollover you must:

1. Verify whether the funds are eligible for a rollover to the Maryland College Investment Plan by contacting Maryland 529 and review requirements for processing a rollover.
2. Open your Maryland College Investment Plan account.
3. Complete the Rollover Form.
4. Mail the completed Rollover Form to the address listed on the form. Your rollover should be processed and completed within a few weeks.

Please note that the account owner on the Prepaid College Trust account must be the same as the account owner on the College Investment Plan account.

To request a refund, you must fill out a Refund Request Form and upload it to your online account. If you have not already registered your account, you must do so first to upload your form(s).

If you would like to change the account holder for your Maryland Prepaid College Trust (MPCT) account, you will need to fill out an Account Maintenance Form and upload it to your online account. (Please complete Section 4 of the form.)

Please note, if you wish to change the account holder, this process must be completed first. Once the new account holder is established, they can then proceed with any refund requests.