Get in-depth information on the Maryland Prepaid College Trust.
How does the Trust work?
The Prepaid College Trust is a pooled fund similar to a defined benefit plan. You are purchasing a contract that will pay a specific value in the future. So, you will not have a daily value on your account like a mutual fund, but the Trust will pay benefits in future Tuition dollars. For example, if Maryland Public College Tuition increased by 10% from the year you purchased your contract, the Prepaid College Trust would pay that higher Tuition.
You know that the Maryland Prepaid College Trust lets you lock in tomorrow’s Tuition at today’s prices, but that’s not the only benefit. There are many more reasons why the Maryland Prepaid College Trust is a smart way to save.
You can use the Maryland 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 or your Minimum Benefit, whichever is greater.
- At a private or out of state college, the Prepaid College Trust will pay Tuition and mandatory fees up to either the Weighted Average Tuition or your Minimum Benefit, whichever is greater. You would then have to make up any difference.
Your investment comes with peace of mind.
The Prepaid College Trust is backed by a Maryland Legislative Guarantee.
Tuition and payment plans are flexible and affordable.
- You can start with as little as one semester and buy additional semesters or years at nearly any time.
- Family and friends can also help you save with gift contributions or by opening their own account.
- If your child decides not to attend college, you can delay using your account (up to 10 years after your child’s projected year of college enrollment plus any years spent in active U.S. military service), change the beneficiary on your account to another family member or request a reduced refund.
The Maryland Prepaid College Trust invests your payments to fund your future tuition payments. Review the most recent Annual Report for details on our financial statements and actuarial status.