Two General Assembly bills aim to abolish the board of Maryland 529, the beleaguered state higher education savings agency, and move the organization under the auspices of the state treasurer by June, a change State Treasurer Dereck Davis supports.
Del. Cathi Forbes, a Baltimore County Democrat, has introduced the House version of the legislation and Sen. Joanne Benson, a Prince George’s County Democrat, is the chief sponsor of an identical bill in her chamber.
Maryland 529 is named for the federal tax code section that allows parents to invest money for their children’s education and later withdraw it tax-free. The agency has faced criticism since last year, when parents who invested in its Maryland Prepaid College Trust said Maryland 529 suspended access to their accounts without warning, leaving them to scramble to pay their children’s tuition.
Maryland 529 blamed the debacle on an interest calculation error discovered during the botched transition to a new program manager. Affected parents disputed that, saying the agency board reneged on a contract clause entitling them to a higher compounded monthly interest rate.
Click here to read the rest of the article written by Lia Russell over at The Baltimore Sun
