College Savings Plans of Maryland Launches Maryland Prepaid College Trust 2003-04 Enrollment Period.

Business Editors/Education Writers

BALTIMORE--(BUSINESS WIRE)--Nov. 17, 2003

The College Savings Plans of Maryland announces that the Maryland Prepaid College Trust, offering families an opportunity to lock in tomorrow's tuition costs at today's prices, is accepting enrollments now through March 19, 2004.

Announcing the new enrollment period, the College Savings Plans of Maryland Board noted that the Section 529 (IRS tax code) plan's popularity has continued to grow, with more than 18,800 families now participating. The plan offers both federal and state tax-free earnings, backed by a Maryland Legislative guarantee. Newborns to ninth-graders are eligible for enrollment.

"In this period of rapidly increasing public and private college tuition rates, more families recognize the importance of acting now to make sure that their children and grandchildren will be able to attend college," says Edwin S. Crawford, Board Chairman. "Today's infant who will graduate in 2024 can expect to pay more than $100,000 in tuition and mandatory fees at a Maryland public university. But by enrolling now in the Prepaid College Trust, families can pay one-third to one-half of this projected tuition, even if they pay monthly until their infant graduates from high school."

The Prepaid College Trust will pay full in-state tuition and mandatory fees at any Maryland public college or university when enrolled children reach college age. Tuition benefits may be applied to nearly all other colleges and universities, public or private, around the nation.

The Board also announced new rates for the prepaid tuition contracts, with increases from 18 to 27 percent, depending on the tuition plan. A variety of plans are available, from two years at community colleges to one through five years at universities. Payments may be made by lump sum, annually, or monthly. The tuition and mandatory fees at Maryland public universities, set each fall by the University System of Maryland Board of Regents, are key factors in determining rates. This year, tuition and fees jumped an average of 20 percent.

The College Savings Plans of Maryland, a State agency, administers the Prepaid College Trust and another tax-advantaged 529 plan - the Maryland College Investment Plan, managed and distributed by T. Rowe Price. The College Investment Plan offers a choice of 12 investment portfolios, with no sales commissions or loads. Introduced in December 2001, the plan currently has $360 million invested and is open for enrollment year-round. Investments for both plans currently total more than $550 million. Families may enroll in one or both plans and may be eligible for a Maryland State income tax deduction of up to $2,500 per account or beneficiary, depending upon the plan.

Because enrolling in a 529 plan is an important decision, the College Savings Plans of Maryland recommends that consumers read all materials carefully. Consumers can visit the agency's Web site at www.collegesavingsmd.org or call 1-888-4MD-GRAD.