MD 529 pre paid tuition debacle

[Anonymous]

Not sure if anyone has been following the news on this but the MD prepaid tuition program is an absolute disaster. The prepaid trust has hired a law firm, an accounting firm, and a PR firm to spin a false narrative that parents were never owed ongoing investment returns, despite contractual evidence to the contrary. Only senator Mary Washington appears to be in the side of the parents and calling for a full investigation of the trust. There is a growing group of 700 parents on the Facebook group, "save our 529 interest MD prepaid plan" Is there anything else we can do? Most of the local news reports I see are surface reporting. It does not appear that the attorney general has been helpful thus far.

[Anonymous]

The Facebook group is "Free our interest now, MD 529." The issues are very complicated, and the problems with the management of the prepaid fund go back many years. They should just shut it down and distribute the assets equitably.

[Anonymous]

Why would you get interest in a prepaid plan? I thought you were just pre-paying and thereby “locking in” lower tuition rates?

[Anonymous]

Anonymous wrote:Why would you get interest in a prepaid plan? I thought you were just pre-paying and thereby “locking in” lower tuition rates?

for those change their mind, they can get money back with certain interest rates

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why would you get interest in a prepaid plan? I thought you were just pre-paying and thereby “locking in” lower tuition rates?

for those change their mind, they can get money back with certain interest rates

It is complicated- depending when people bought, they overpaid for their contracts. And the trust was grossly overfunded. Subsequently- the board decided to give interest on initial investments at the rate of 6%. In December 2021 they trust issued annual statements that overvalued the amount of the accounts but people were told it was accurate. It is a very big mess.

[Anonymous]

Is this another T Rowe Price fail?

[Anonymous]

Anonymous wrote:Is this another T Rowe Price fail?

Pp- no this has nothing to do with TRowe

[Anonymous]

Didn’t affect investment plans right? Only prepaid?

[Anonymous]

Yes this is only the 529 pre-paid plan

[Anonymous]

I am surprised there isn't a law firm signing up families for a class action...or at least I haven't seen one in the media coverage. It's such a mess.

[Anonymous]

This is only pre paid issue for parents who did not go in state so makes no sense to do that.

[Anonymous]

Anonymous wrote:This is only pre paid issue for parents who did not go in state so makes no sense to do that.

If a kid doesn't get into UMD, it makes a lot of sense to not go instate. If the plan made promises about interest rates for accounts not used in state, they should be held liable

[Anonymous]

Anonymous wrote:I am surprised there isn't a law firm signing up families for a class action...or at least I haven't seen one in the media coverage. It's such a mess.

I bet it will turn out to be no-so-easy to sue the state.

[Anonymous]

You have two choices for your college savings: trust in the greedy criminals on wall street or the incompetent bureacrats of state government.

[Anonymous]

Anonymous wrote:You have two choices for your college savings: trust in the greedy criminals on wall street or the incompetent bureacrats of state government.

Incompetent contracting with connected and over-priced firms. There is a reason that the Nevada plan is popular with people who don't live in Nevada