Maryland’s college savings program failed parents

The first I learned that Maryland’s 529 Prepaid College Trust had changed the way it paid for rollovers — reducing balances by tens of thousands of dollars — was through a Facebook group organized by frustrated parents. Nothing about the recent problems at the Prepaid College Trust has been transparent. What’s really at stake is a breach of contract. Our contracts gave us the right to transfer our principal balances plus 100 percent of the earnings if we wanted to switch to another educational savings plan. Thousands of parents have used that option, earning 5 or 6 percent on their balances.