Maryland Prepaid College Trust
Maryland College Investment Plan
CollegeSavingsMD.org 888.4MD.GRAD (463.4723)

Why Save for College?
An example of how borrowing $25,000, instead of investing, can double the out-of-pocket cost of college:
This example was developed by T. Rowe Price and does not consider any investment or loan origination fees. Amounts are adjusted to today’s dollars and assume an inflation/discount rate of 3% annualized.
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College Savings 101
Question 1 : Does the State of Maryland offer families a tax-deferred savings option for college?
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ANSWER: YES .
The College Savings Plans of Maryland is an independent, non-profit Maryland State Agency that offers two Section 529 college savings plans to help families prepare for the future cost of college and reduce future debt.
Allows you to lock-in tomorrow’s college tuition based on today’s prices and helps to hedge against future tuition increases
Managed by T. Rowe Price, offers investors a variety of investment options
BOTH
PLANS
Any investment growth is tax-deferred at the State and federal level
When funds are used for eligible college expenses, earnings are
• Maryland tax-free
• Federally tax-free
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College Savings 101
Question 2 : Are there any additional tax benefits?
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ANSWER:
Yes. There are unique tax benefits.
• Deduct up to $2,500 from your Maryland adjusted gross income per account each year.
• Payments in excess of $2,500 per account can be carried forward and deducted in future years until the full amount has been deducted.
• Deduct up to $2,500 from your Maryland adjusted gross income per beneficiary each year.
• Contributions in excess of $2,500 per beneficiary can be carried forward and deducted for up to the next 10 years.
Only the Account Holder is eligible for the Maryland income deduction and only on contributions he or she makes.
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College Savings 101
Question 2a and 2b : Are the Plans just for children? What about grandparents or aunts/uncles helping save?
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ANSWER: Plans are for adults and children.
Families members can help save.
Maryland Prepaid
College Trust
Age
Residency
Enrollment
Period
Open to 12th graders or younger, including newborns
Either the account holder or child must reside in Maryland or DC at the time of enrollment
2014 – 2015 Enrollment Period:
December 4, 2014 - April 15, 2015
Maryland College
Investment Plan
Invest for children or adults – no age restrictions
No Maryland or DC residency requirements
Enrollment open year-round
Families may choose either plan – or both!
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College Savings 101
Question 3 : Maryland is in the name. Are the
Plans only good at Maryland colleges?
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ANSWER: Plans can be used at nearly any eligible institution across the country!
MCIP
Eligible Institutions :
• 4-year Colleges and Universities
• In-State
• Out-of-State
• 2-year Community Colleges
• Trade and Technical Schools who have a Federal School Code
Covered Expenses:
• Any qualified education expense outlined by IRS Publication 970
• Generally includes tuition, fees, books and supplies
• Certain room and board, provided the student is enrolled at least half-time
MPCT
Eligible Institutions :
• 4-year Colleges and Universities
• In-State
• Out-of-State
• 2-year Community Colleges
Covered Expenses:
• Tuition and Mandatory Fees or
Minimum Benefit at a Maryland public college
• Up to the Weighted Average Tuition or
Minimum Benefit at private or out-of state colleges
• Room, Board, and Books eligible when the beneficiary receives a scholarship
Please review the Plan Disclosure statements for detailed information
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College Savings 101
Question 4 : I don’t have a lot extra money in my budget. Does it cost a lot to get started?
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ANSWER:
There are affordable options.
Affordability
Flexibility
Prepaid College Trust
Choose a variety of payment and tuition options
Plan offerings:
 1 semester up to 5 years of university
 1 or 2 years of community college
 Combination of both
Payment options include monthly, annually or extended
College Investment Plan
Minimum investment:
 $250 by check; or
 $25 a month
 Change tuition/payment option nearly at any time
 Purchase additional semesters or years at nearly any time
 Choose from a variety of investment options
 Make contributions systematically
• Bank Account
• Payroll
 Add additional contributions for birthdays, holidays, etc.
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College Savings 101
Question 5: Are savings lost if the student doesn’t go to college or gets a scholarship?
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ANSWER: There are options.
Change the beneficiary to yourself
Defer until graduate school
Transfer to another family member
Take a Distribution *
MCIP
Transfer to
MCIP
Transfer
Unused
Benefits to another child
Combine to cover more eligible expenses
Defer until graduate school
MPCT
Request a
Refund*
*There may be negative federal and/or state tax effects. Please consult with your tax advisor before taking a distribution or receiving a refund in these cases.

College Savings 101
Question 6: What if I have additional questions?
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Contact Us
Maryland Prepaid College Trust
Maryland College Investment Plan
CollegeSavingsMD.org
888.4MD.GRAD (463.4723)
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