If you have a youngin' headed for college in a few years, you may find this useful:
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[font=Times New Roman,Times New Roman]Enrolling in the College Savings Plans of Maryland is an important decision. Please read the entire Enrollment Kit carefully before deciding to invest. The Enrollment Kit discusses investment objectives, risks, fees, charges and expenses, and other important information and may be accessed on-line or by calling 1-888-4MD-GRAD. If you live outside of Maryland check with your State to learn if it offers tax or other benefits for investing in its 529 plan.[/font]
The Maryland Prepaid College Trust 2006 - 2007 Enrollment Period Closes on March 31, 2007.
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Tax season is a Good Time to Take Action and Save For Future College Education
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BALTIMORE (March 2, 2006) – The College Savings Plans of Maryland (CSPM) today announced that the
[/font][font=Times New Roman,Times New Roman]Maryland Prepaid College Trust [/font][font=Times New Roman,Times New Roman](MPCT) 2006 - 2007 enrollment period officially closes on March 31, 2007. The Prepaid College Trust is a Maryland Section 529 plan that gives families an opportunity to lock in tomorrow’s tuition at today’s prices and is backed by the security of a Maryland Legislative Guarantee. Prices for the University and Community College Plans within the MPCT [/font]are the same as last year’s prices, [font=Times New Roman,Times New Roman]but families can be assured of these prices only through the end of this enrollment period, except for families with newborn infants and current participants who purchase additional semesters or years of tuition.[/font]
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The CSPM, an independent State Agency, also administers another tax-advantaged 529 plan – the
[/font][font=Times New Roman,Times New Roman]Maryland College Investment Plan[/font][font=Times New Roman,Times New Roman], which is open for enrollment year-round and is managed and distributed by T. Rowe Price. Both plans offer generous federal and Maryland State tax benefits and can be used at nearly any accredited college in the country.[/font]
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It’s never too early or too late to begin saving for college and these flexible, affordable savings plans make it easy to get started. Tax season is a particularly good time of the year to consider all the benefits of enrolling in either or both of Maryland’s college savings plans.
"With the escalating cost of college, now is the time to think about establishing a college savings strategy through one or both of our college savings plans in order to lessen or even eliminate the need to borrow money down the road" said Joan Marshall, CSPM Executive Director. "Saving for college is important since too many families today are incurring thousands of dollars in burdensome student loan debt. You can even consider dedicating a portion or all of a potential tax refund to get a jump start on the plan or plans of your choice."
Families enrolling in the Prepaid College Trust by the March 31, 2007 deadline pay nothing (except the enrollment fee of $75) until August 1, 2007.
Key features of the Plans include:
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[/font]Tax benefits: [font=Times New Roman,Times New Roman]CSPM offers [/font][font=Times New Roman,Times New Roman]the only 529 plans that provide a State income deduction [/font][font=Times New Roman,Times New Roman]for Maryland taxpayers (up to $2,500 per account or beneficiary, depending on the plan). [/font][font=Times New Roman,Times New Roman]Earnings are also tax-free [/font][font=Times New Roman,Times New Roman]when used toward eligible college costs.
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[/font]Save here, study anywhere: [font=Times New Roman,Times New Roman]The [/font][font=Times New Roman,Times New Roman]Prepaid College Trust [/font][font=Times New Roman,Times New Roman]will pay [/font][font=Times New Roman,Times New Roman]full in-state or in-county tuition and mandatory fees at any Maryland public college or university [/font][font=Times New Roman,Times New Roman]when enrolled children reach college age. [/font][font=Times New Roman,Times New Roman]Tuition benefits may also be applied to nearly all other colleges and universities[/font][font=Times New Roman,Times New Roman], public or private, around the nation.
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[/font]Sign up now, pay later: [font=Times New Roman,Times New Roman]Prepaid College Trust payments do not start until August 1, 2007[/font][font=Times New Roman,Times New Roman], [/font][font=Times New Roman,Times New Roman]offering families the [/font][font=Times New Roman,Times New Roman]opportunity to save money – or even use 2006 tax refunds [/font][font=Times New Roman,Times New Roman]– between enrollment and the first payment date.
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[/font]One-Semester Plans: [font=Times New Roman,Times New Roman]It’s easier than ever for grandparents and others to join forces with parents to make college possible for their loved ones by purchasing as little as one semester, possibly as a gift, which could be a smart alternative to savings bonds.
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[/font]Online enrollment: [font=Times New Roman,Times New Roman]Online enrollment makes signing up fast, easy and convenient[/font][font=Times New Roman,Times New Roman]. Complete information is available on CSPM’s Web site ([/font][font=Times New Roman,Times New Roman]www.collegesavingsmd.org[/font][font=Times New Roman,Times New Roman])[/font].
[font=Times New Roman,Times New Roman]Enrolling in the College Savings Plans of Maryland is an important decision. Please read the entire Enrollment Kit carefully before deciding to invest. The Enrollment Kit discusses investment objectives, risks, fees, charges and expenses, and other important information and may be accessed on-line or by calling 1-888-4MD-GRAD. If you live outside of Maryland check with your State to learn if it offers tax or other benefits for investing in its 529 plan.[/font]
