The following frequently asked questions should be read in conjunction with and are limited by the full Enrollment Kit. Many terms used in this section are defined in the Enrollment Kit.
Minimum benefits are defined as payments you make under the contract plus a reasonable rate of return. This rate is equal to a monthly rate of return of a U.S. Government Security with a constant maturity of one year minus 1.2%, but will never be less than zero. This rate has been zero since October 2008.
If tuition at an eligible institution is less than the minimum benefit, you may use the difference to pay for other qualified education expenses such as room and board and books.
Each November, following the payment of fall semester benefits, you can access the minimum benefits on our website.
Please read the entire Enrollment Kit carefully before deciding to enroll. The Maryland College Investment Plan Disclosure Statement provides investment objectives, risks, expenses and costs, Fees, and other information you should consider carefully before investing. If you or your beneficiary live outside of Maryland, you should compare Maryland 529 to any college savings program offered by your home state or your beneficiary’s home state, which may offer state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.
*Morningstar analysts reviewed 62 plans for its 2019 ratings (10/22/19), of which 13 plans received a “Silver” rating. To determine a plan’s rating, Morningstar’s analysts considered 5 factors: the plan’s strategy and investment process; the plan’s risk-adjusted performance; an assessment of the individuals managing the plan’s investment options; the stewardship practices of the plan’s administration and parent firm; and whether the plan’s investment options are a good value proposition compared with its peers. Plans were then assigned forward-looking ratings of “Gold,” “Silver,” “Bronze,” “Neutral,” and “Negative.” Each year, certain of the industry’s smallest plans are not rated.
Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts’ current expectations about future events and, therefore, involve unknown risks and uncertainties that may cause Morningstar’s expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees.