Maryland parents eager for their children to attend college should be aware of the new enrollment deadline for the Maryland Prepaid College Trust (MPCT). With enrollment now extended through May 31, 2018, families can save for college by locking-in tomorrow’s tuition at today’s rates.
The MPCT is one of two 529 college savings plans administered by Maryland 529, an independent state agency that gives families an opportunity to lock-in tomorrow’s tuition at today’s prices. Benefit payments from the Prepaid College Trust can be used at both in-state and out-of-state colleges and contributors with Maryland taxable income may take up to a $2,500 State income deduction per account, annually.
“With student loan borrowers having doubled in the last 10 years to 42 million people, and student loan debt ballooning from $240 billion to $1.3 trillion, saving for college by enrolling in a 529 plan can help reduce the amount borrowed, and in some cases eliminate the need to take out a student loan in the future,” said Michelle Winner, Public Relations and Marketing Program Manager of Maryland 529. “The Prepaid College Trust allows Maryland families to gain the peace of mind that comes with knowing they have locked into today’s prices for future tuition benefits that their children or grandchildren can ultimately use.”
According to a study by the National Center for Education Statistics, 65-percent of Maryland high school seniors choose to attend post-secondary institutions out-of-state. With over half of high school students opting to enroll in out-of-state schools, parents need to save with a plan that allows for flexibility.
With the Maryland Prepaid College Trust, account holders have the freedom to use their savings at both in-state and out-of-state colleges and universities. Savings can be used to pay the full in-state or in-county tuition and mandatory fees at any Maryland public college, or pay up to the Weighted Average Tuition or your Minimum Benefit toward tuition and mandatory fees at nearly any federally accredited private or out-of-state college.
Additional information-points are noted as follows:
•The MPCT is backed by a Maryland Legislative Guarantee, which adds an additional level of assurance for account holders.
•MPCT account holders are eligible for federal tax benefits and MPCT account holders and contributors with Maryland taxable income may take up to a $2,500 State income deduction per account, annually on their State taxes.
•The MPCT is open to children from newborn through 12th grade, but accounts must be open for at least three years before tuition benefits can be paid.
The deadline to enroll in the MPCT is Thursday, May 31, 2018. To open a MPCT account, visit: Maryland529.com/Enroll-Now and complete the online enrollment form. More information about the benefits of the Maryland Prepaid College Trust can be found at www.Maryland529.com.