MARYLAND (WBFF) — “It feels a bit like a betrayal,” said Maryland 529 account holder, Wendy Hall.
When Wendy Hall’s son Daniel was accepted to Cornel University, a private research institution in Ithaca, NY, she couldn’t have been more proud. However, when she attempted to pay for his costly tuition with money from her Maryland 529 savings account, she couldn’t have been more shocked.
“Suddenly, we could not access those funds,” said Hall.
Along with 30,000 others, the interest in her account was frozen without warning. Maryland 529 blamed a calculation error, but promised no funds would be lost, only delayed. Almost a year later, those funds remain frozen.
Meanwhile, tuition was still due.
“So, consequently, we ended up having to refinance our home,” said Hall, “It’s as if the rug has been pulled out from under us financially and we don’t want to deny our children the opportunity for an excellent education.”
After months of seeing red, dozens of affected families dressed in red for a meeting with the state’s House Appropriations Committee and Maryland 529 executives on Thursday.
“Sitting behind you is a room full of people that aren’t able to pay their bills,” said Del. Catherine Forbes (D-Baltimore County).
529 plans are just another way the government steals from taxpayers. Why should I have to help pay for someone else’s kid to go to college? The taxes that aren’t paid on 529 distributions for higher education expenses are tax dollars that then have to be made up for by taking them from somewhere/ someone else. Socialism much? It’s like tax deductions for charitable donations. Same thing. Why must I support someone else’s decision to support a charity that I might not want to support?