Maryland College Investment Plan Faces Turmoil Amid Controversy

During the 2023 General Assembly session, lawmakers passed bills that abolished the Maryland 529 board that previously oversaw the state's college savings plans. This move came after a series of controversies and issues surrounding the management of the funds. The Maryland college savings plan director quietly resigned amidst controversy, leaving investors and account holders concerned about the future of their investments.

The embattled executive director of the State's college savings program stepped down amidst growing criticism and scrutiny. Lawmakers and account holders criticized Maryland 529 for obfuscation and incompetence after the agency suspended earnings on 31,000 prepaid accounts. Parents who invested in the state's prepaid tuition program expressed frustration over the decision to set a 6% retroactive earnings rate for account holders.

A retroactive 6% earnings rate will be applied for Maryland account holders participating in the 529 Prepaid College Savings Trust plan. This decision has sparked outrage among investors who feel that their investments are being mismanaged. The online system has been down for months, further adding to the frustration of account holders who are unable to access their information.

For almost a year, starting in spring 2022, hundreds of account holders with the Maryland 529 Prepaid College Trust sought answers to why their earnings were suspended. What's next for Maryland 529 college savings plan as treasurer takes charge remains uncertain. Lawmakers and officials are working to address the issues and restore confidence in the state's college savings program.

WASHINGTON, DC – Today, Congressman Jamie Raskin (MD-08), Senator Chris Van Hollen (D-MD), Congressman Dutch Ruppersberger (MD-02), and other officials have called for transparency and accountability in the management of the Maryland college savings plans. The controversy surrounding the program has raised concerns about the oversight and governance of the funds.

Overall, the Maryland college savings plan is facing turmoil and uncertainty as questions continue to swirl around its management and operations. Investors and account holders are eager for answers and solutions to the ongoing issues plaguing the program. The future of the Maryland 529 savings plan remains unclear as officials work to address the challenges and restore trust in the system.