Can my payments to the Maryland Prepaid College Trust ever be more than the actual benefit?
No. The Board has set a policy where Benefits from the Prepaid College Trust will not be less than payments to your Account plus a reasonable return on your payments. This reasonable return is equal to a U.S. Government Security with a constant maturity of one year minus 1.2% (but will never be less than zero). In certain instances where actual Tuition is less than payments to your Account plus this reasonable return, the difference can be used for other Qualified Higher Education Expenses such as room and board or books.
Related Questions
- Am I allowed to have both a Prepaid College Trust Account and another 529 Account such as the Maryland College Investment Plan?
- Can my payments to the Maryland Prepaid College Trust ever be more than the actual benefit?
- Can I use my Upromise contributions to fund my Maryland Prepaid College Trust account*?
