Why the Maryland Prepaid College Trust?

Here’s how it works:

The Prepaid College Trust is a pooled fund similar to a defined benefit plan. You are purchasing a contract that will pay a specific benefit (Tuition) in the future. The Trust will invest your payments to fund the Beneficiary's future Tuition payments.

Prepaid College Trust Contract prices include certain assumptions about Tuition increases and investment earnings. Because the Trust has promised to pay future Tuition costs, even if Tuition increases are greater than expected, or investment earnings are lower, the Trust still pays the Tuition benefit. Contributions from all Accounts are pooled and collectively invested, so Accounts do not have a daily value as you would in an individual investment account. The investment returns attributable to an Account are only determined at the time of a distribution.

Annual Report

Review the most recent Annual Report for details on our financial statements and actuarial status.

You can use the Prepaid College Trust at nearly any college nationwide.

At a Maryland Public College, the Prepaid College Trust will pay the full in-state or in-county Tuition and Mandatory Fees.

At a private or out-of-state college, the Prepaid College Trust 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.

Your investment

Maryland Legislative Guarantee

Your investment comes with peace of mind. Maryland law provides that in the event that funds in the Trust are insufficient to pay full Benefits in any given year, the Governor shall include an amount in the following year’s State budget to fully pay Benefits, subject to the Maryland General Assembly’s final approval.

Other Features

You can start with as little as one semester and buy additional semesters or years at nearly any time.
See Tuition Plans and Payment Options.

Family and friends can also help you save with gift contributions or by opening their own Account.

The Beneficiary has the number of years purchased in the Account plus 10 years to use all Benefits. This time commences in the fall of the Beneficiary's projected year of college enrollment and can be extended for any active service in the U.S. military.