1. CollegeSavingsMD.orgw 888.4MD.GRAD (463.4723)
Maryland Prepaid College Trust
Maryland College Investment Plan
CollegeSavingsMD.orgw MD.GRAD ( )

2. College Savings Plans of Maryland Overview
The College Savings Plans of Maryland is an independent, non-profit Maryland State Agency that offers two Section 529 college savings plans to help families prepare for the future cost of college and reduce future debt.
Maryland College Investment Plan
Managed by T. Rowe Price, offers investors a variety of investment options
Maryland Prepaid College Trust
Allows you to lock-in tomorrow’s college tuition based on today’s prices and helps to hedge against future tuition increases
Both plans can be used at nearly any federally accredited college in the country.

3. Why Save for College?
An example of how borrowing $25,000, instead of investing, can double the out-of-pocket cost of college:
This example was developed by T. Rowe Price and does not consider any investment or loan origination fees. Amounts are adjusted to today’s dollars and assume an inflation/discount rate of 3% annualized.

4. Maryland Prepaid College Trust Maryland College Investment Plan
Who Can Enroll?
Maryland Prepaid College Trust
Maryland College Investment Plan
Age
Open to 12th graders or younger, including newborns
Invest for children or adults – no age restrictions
Residency
Either the account holder or child must reside in Maryland or DC at the time of enrollment
No Maryland or DC residency requirements
Enrollment Period
2013– 2014 Enrollment Period:
December 1, April 7, 2014
Enrollment open year-round
You may choose either plan – or both!

5. Maryland Prepaid College Trust
With the Maryland Prepaid College Trust, you commit to fixed payments for a future benefit:
When your child goes to college, the Prepaid College Trust will pay the full in-state or in-county tuition and mandatory fees at any Maryland Public College or Community College
If your child attends an accredited private or out-of-state college, the Prepaid College Trust will pay up to that year’s weighted average tuition of the Maryland Public Colleges or Community Colleges – or a Minimum Benefit – whichever is greater
The Prepaid College Trust is also backed by a:
Maryland Legislative Guarantee

6. 2013-2014 Maryland 4-Year Public College Costs
St. Mary’s College of Maryland
$14,865
University of Maryland, Baltimore County
$10,068
University of Maryland, College Park
$9,161
Weighted Average Tuition
$8,900
Towson University
$8,342
Salisbury University
$8,128
University of Baltimore
$7,664
Frostburg State University
$7,728
Morgan State University
$7,218
University of Maryland Eastern Shore
$6,998
Bowie State University
$6,971
Coppin State University
$5,882
*Tuition benefits are paid per semester – A beneficiary attending a private or out-of-state college for the 2013 – 2014 Academic Year receives up to $4,450 per semester – or the Minimum Benefit - whichever is greater.

7. Affordable – Select a Tuition Plan
University Plan
1 semester or 1, 2, 3, 4 or 5 years at a 4-year college
Community College Plan
1 or 2 years at a Community College
Two Plus Two Plan
2 years at a Community College and 2 years at a 4-year college
Existing account holders can add additional semesters or years outside of the enrollment period at current prices
Other family members can purchase years or semesters too!

8. Affordable – Select a Payment Option
Lump Sum
One-time payment for the full amount of the tuition plan selected
Annual Payment
Equal yearly payments
5-Year Monthly Payment 60 equal monthly payments
Extended Monthly Payment
Equal monthly payments through July of the Beneficiary’s projected year of high school graduation or year of Initial Eligibility
Down Payment
25%, 40% or 55% of the lump sum price with the remaining amount to be paid monthly or annually

9. 4-Year University Contract Costs vs. Projected Weighted Average Tuition
$145,667
$99,459
$73,507
$54,459
Projected Weighted Average Tuition Growth is for illustrative purposes only. Actual Weighted Average Tuition growth may be higher or lower than projected and is updated annually.

10. You can change, use, transfer or delay using your account
Flexible
You can change, use, transfer or delay using your account
Change your Tuition Plan or Payment Option at nearly any time
Use your account if the child attends college at least half-time
Use your account towards graduate school
Transfer your account to certain relatives of the child (doesn’t have to be a sibling)
Transfer your account to the Maryland College Investment Plan at any time (may be helpful for children preparing to attend an accredited trade and technical school)
Delay using your benefits for up to 10 years after the child graduates high school plus any time served in active duty of the military

11. Flexible
What Happens if My Child Receives a Scholarship, Grant or Tuition Remission?
Use your account toward current or future eligible higher education expenses such as room & board, books, course specific fees – even graduate school
Combine the grant or scholarship with your Prepaid College Trust account to pay for more of the actual tuition and fees at a private or out-of-state college – above the weighted average tuition
Transfer your account to another member of the child’s family
Request a refund

12. Refundable Two scenarios would merit a Refund:
If the child receives a scholarship, grant or tuition remission
If the child dies or disability prohibits college attendance
Reduced Refund – Given under all other circumstances. You will receive your actual payments, less any administrative fees, plus or minus:
50% of the earnings/losses on those payments if enrolled < 3 years
90% of the earnings/losses on those payments if enrolled ≥ 3 years
Only the account holder may request a refund
There are federal and Maryland tax implications for refunds and reduced refunds

13. Enrollment and Actuarial Status
9,764 students are now eligible to use their tuition benefits in Maryland and across the country
Of the eligible students using their accounts:
58% use them at private and out-of-state colleges; and
42% use them at Maryland public colleges
As of 6/30/13, the Trust is 125% funded to meet anticipated future tuition payments.

14. Maryland College Investment Plan
The Maryland College Investment Plan offers an attractive combination of financial flexibility, affordability, and tax benefits, as well as investment management by T. Rowe Price.
Maryland College Investment Plan offers various investment options:
Enrollment-Based Portfolios – managed to become more conservative as the child ages
Fixed Portfolios – asset allocations are generally constant
Or you can use a mix of both
The account balance can be used at any time to help pay for any eligible college expenses including tuition, fees, room & board, course-specific fees or supplies.
“Gold" Rating from Morningstar Inc. for the Maryland College Investment Plan – fourth year in a row receiving their highest rating!1

15. Starting Early Can Make a Big Difference
The chart below shows the difference that starting early and saving monthly can make over time.

16. Enrollment-Based Portfolios
22.5%
77.5%
38%
62%
46%
54%
71.5%
28.5%
Portfolio 2021
Portfolio 2027
Portfolio 2018
Portfolio 2030
Portfolio 2015
Portfolio 2024
Portfolio for College
100%
Portfolio 2033
92.5%
7.5%
20%
80%
Key
BONDS AND INCOME
STOCKS
Target allocations as of10/1/2013.

17. Fixed Portfolios 40% 100% 60% 100% 100% 100% 100% Equity Portfolio
Global Equity Market Index
Portfolio
60%
40%
Balanced Portfolio
100%
Bond and Income Portfolio
Inflation Focused Bond
Portfolio
100%
U.S. Treasury Money Market Portfolio
100%
100%
STOCKS
BONDS
BONDS AND INCOME
MONEY MARKET
Choose any portfolio you want OR Choose more than 1 portfolio (diversify)
You can move funds from one portfolio to another once per calendar year
You can select a new portfolio for each new contribution
You may invest in a mix of Enrollment-Based and Fixed Portfolios
Target allocations as of10/1/2013.

18. Unique Maryland Tax Benefits
Prepaid College Trust
College Investment Plan
Deduct up to $2,500 from your Maryland adjusted gross income per account each year.
Payments in excess of $2,500 per account can be carried forward and deducted in future years until the full amount has been deducted.
Deduct up to $2,500 from your Maryland adjusted gross income per beneficiary each year.
Contributions in excess of $2,500 per beneficiary can be carried forward and deducted for up to the next 10 years.
Only the Account Holder is eligible for the Maryland income deduction and only on contributions he or she makes.

19. Additional Tax Benefits
For Both Plans:
Any investment growth is tax-deferred at the State and federal level
When funds are used for eligible college expenses, earnings are
Maryland tax-free
Federally tax-free
Please note that state tax benefits are generally only available to residents of that state. Earnings on a distribution not used for qualified expenses may be subject to income taxes and a 10% federal penalty. The availability of tax or other benefits may be conditioned on meeting certain requirements such as residency, purpose for or timing of distributions, or other factors, as applicable.

20. College Investment Plan
Compare the Plans
Prepaid College Trust
College Investment Plan
Affordability
Choose a variety of payment and tuition options
Minimum investment:
$250 by check; or
$25 a month
Flexibility
Change tuition/payment option nearly at any time
Choose from a variety of investment options
Eligible Institutions
4 yr Colleges/Universities
2 yr Community Colleges
Trade / Technical Schools
Benefits Paid/Distributions
Semester by Semester
Any dollar amount available in your account
Eligible Expenses
Tuition and Mandatory Fees at a Maryland public college
Up to the Weighted Average Tuition everywhere else
Room and Board eligible when the beneficiary receives a scholarship
Any qualified expense defined by IRS Publication 970

21. What are the steps to enroll for each plan?
Prepaid College Trust
Step One:
Select a Tuition Plan
Step Two:
Select a Payment Option
Step Three:
Complete an enrollment form for each child you want to enroll by the end of the enrollment period
2013 – 2014 Enrollment Period:
December 1, 2013 through April 7, 2014.
College Investment Plan
Step One:
Choose one or more investment options
Step Two:
Choose how much and how often you want to contribute
Step Three:
Complete an enrollment form for each child
Enrollment is open any time
Please read the entire Enrollment Kit before deciding to enroll

22. CollegeSavingsMD.org/gifting
The gift of education is an option to support your savings efforts.
There are a wide variety of gift certificates and contribution slips available for download.
Birthday
Christmas
Hanukkah
Birth
In Memory of
Kwanzaa
General OR
CollegeSavingsMD.org/gifting

23. College Savings Plans of Maryland Board
Five members serve by virtue of the public office they hold:
Nancy K. Kopp – State Treasurer
Peter Franchot – State Comptroller
William E. Kirwan, Ph.D. – Chancellor, University System of Maryland
Danette G. Howard, Ph.D. – Secretary of Higher Education
Lillian M. Lowery, Ed.D. - State Superintendent of Schools
Five members are appointed by the Governor:
Gary Dorsch – Allegiance Capital
Helene Grady - Vice President for Planning and Budget at The Johns Hopkins University
Russell V. Kelley, Ph.D. – Morgan State University (Retired)
John D. Kenney - Retired Director, General Accounting Division, Office of the Maryland Comptroller
Lewis A. Robinson – Prince George’s County Educators’ Association

24. Additional Features & Benefits
Maryland Prepaid College Trust
Newborns can be enrolled any time during the year from the date of their birth until their first birthday at prices that are in effect when the enrollment is completed
Maryland College Investment Plan
No sales loads, commissions or enrollment fees
Open an account in anticipation of having a child
Adults can save for themselves if planning for future higher education
General Facts
Plans are an excellent vehicle for investing gifts to children
Grandparents are a growing enrollment demographic
Funds in both plans are typically treated as parental assets in determining federal financial aid (FAFSA Form)
Finaid.org

25. Maryland Prepaid College Trust Maryland College Investment Plan
CollegeSavingsMD.org
888.4MD.GRAD ( )

26. Enrolling in the College Savings Plans of Maryland is an important decision for you and your family. Please read the entire Enrollment Kit carefully before deciding to enroll. Section 529 plans offered by other states may offer tax or other benefits to taxpayers or residents of those states that are not available under the College Savings Plans of Maryland. If you live outside of Maryland, you should consider any college savings program offered by your home state or your Beneficiary’s home state prior to making a decision to invest in the College Savings Plans of Maryland. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision. In addition, you should periodically assess, and if appropriate, adjust your Section 529 plan investment choices with your time horizon, risk tolerance and investment objectives in mind.
1Morningstar analysts reviewed 64 plans for both its 2013 ratings (10/22/13) and 2012 ratings (10/15/12), of which 4 plans received a “Gold” rating. To determine a plan’s rating, Morningstar’s analysts considered five factors: the plan’s strategy and investment process; the plan’s risk-adjusted performance; an assessment of the individuals managing the plan’s investment options; the stewardship practices of the plan’s administration and parent firm; and whether the plan’s investment options are a good value proposition compared to its peers. Plans were then assigned forward-looking ratings of “Gold,” “Silver,” “Bronze,” “Neutral,” and “Negative.” 21 of the industry’s smallest plans were not rated in 2013 and 22 were not rated in 2012.
For its 2011 ratings, Morningstar analysts reviewed 58 plans, of which 6 plans received a “Top” rating, and 53 plans for its 2010 ratings, of which 5 plans received a “Top” rating. Ratings for each plan in 2011 and 2010 were based on five factors: the quality of the underlying investment options; performance of those options; the skill of the managers of those options; the costs associated with each plan; and the stewardship practices of each plan’s program manager. Plans were then assigned ratings of “Top,” “Above Average,” “Average,” “Below Average,” and “Bottom.” To earn a “Top” rating under the previous ratings scale, a plan needed to be best-in-class across all five areas.
Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts’ current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar’s expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees.