Loving Life Summer Edition 2014 Volume 8.7 | Page 15

The College Savings Plan of Maryland offers two types of savings plans. The Maryland College
Investment Plan operates similar to any other investment management account and can be established with contributions as little as $25 per month. This plan offers one incredible distinction from
traditional investment accounts. As long as the withdrawals are used for qualified college expenses,
both the income and the withdrawals are tax-free! These qualified expenses can be incurred at almost any public or private college in the US!
If your children are still young like mine, you probably cringe when you think about how much college education costs will escalate over the next decade or more. The Maryland Prepaid College
Trust promises to “Pay for Tomorrow’s Tuition at Today’s Prices.” This plan provides protection
against that uncertainty and is secured by a Maryland Legislative Guarantee. The annual or
monthly flexible payment amounts are determined by your child’s age when you establish the plan.
The most attractive benefit of this plan is the majority of college education costs will be paid for before your children attend their first class! When the tuition bills begin to arrive in your mailbox, you
can happily forward them to the State of Maryland for payment.
Please be advised that the MD Prepaid Trust will only pay full in-state or in-county tuition and
mandatory fees at any MARYLAND PUBLIC COLLEGE. A weighted average is applied to
tuition at any of the other Private and Out-of-State Colleges. Depending on your child’s college
preference, choosing the MD Prepaid College Trust will likely result in additional out-of-pocket
college education expenses. This important distinction may steer you toward the Maryland College
Investment Plan.
For more information on The College Savings Plan of Maryland, please visit http://
www.collegesavingsmd.org/.