The Trust was created during the 1997 Legislative Session and is intended to make access to higher education more affordable. The purpose of the Trust is to allow individuals to plan and save for future college expenses by purchasing prepaid tuition contracts. Under the Trust a purchaser pays money to the Trust and receives a contract. Money received by the Trust is held and invested by the Maryland Prepaid College Trust, to be used for future payments. When the designated year arrives, the beneficiary may use the benefit at any Maryland public college.
Contracts require either lump-sum payments or installment payments.
Prices are based on current tuition and mandatory fees at Maryland public colleges, adjusted for several factors. For further details contact the Maryland Prepaid College Trust. The bills also provide for an addition modification in the event that the money is refunded to the owner of the contract. The investment can be used for tuition, mandatory fees, room and board, books, or course-specific fees. The Plan will not have any residency requirements and will offer Maryland State and federal tax benefits similar to the Trust.