COLLEGE SAVINGS PLANS OF MARYLAND BOARD

Maryland Prepaid College Trust. The Maryland Prepaid College Trust was established by the Board in 1997 to hold investments. Under the Trust, Maryland and District of Columbia residents may prepay tuition for a college education. At Maryland public colleges and universities, the Trust is designed to pay the equivalent of the in-state student tuition and mandatory fees. This is accomplished through the purchase of tuition contracts by which the purchaser enters into a contract with the Board and makes payments in advance of enrollment. Benefits also may be applied to the tuition costs at any accredited private or out-of-state college.

Maryland College Investment Plan. The Maryland College Investment Plan formed in July 2000 (Chapter 494, Acts of 2000). To save for college, contributors establish a mutual fund investment account on behalf of a qualified designated beneficiary. The Plan is managed and distributed professionally through a contract with the State and any investment earnings in an account are exempt from State and federal tax if used for tuition, housing, books, and other eligible higher education expenses. Maryland residents and nonresidents may participate in the Plan.