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“A broken promise”: Maryland’s college savings program forbids parents from making withdrawals.

Hundreds of families invested in Maryland’s 529 prepaid plans have been unable to access all of the money. Administrators say calculating error may have affected all 31,000 prepaid accounts. Account holders, mostly parents, say the trust has never been clear on why this happened. It offered no timeline to resolve the problem. Maryland offers two types of 529 college savings accounts.

Prepaid plans let families lock in future tuition payments at today’s prices. But a calculation glitch prevented them from paying out interest on the plan. A spokeswoman for the trust says “tremendous progress has been made toward the resolution”.