"It's disgraceful" | Lawmakers demand answers from Maryland 529 administrators
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.
RELATED |Maryland 529 completely freezes some college funds without explanation
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," saidDel. Catherine Forbes (D-Baltimore County).
During which, lawmakers scolded the agency’s top officials for their lack of transparency and urgency as families struggle to make ends meet.
"Frankly, it’s disgraceful," saidDel. Ben Barnes (D-Anne Arundel & Prince George’s Counties), "This legislature is really looking into your governance and thinking maybe we need some big changes here."
"It’s a total disaster obviously," saidDel. Nino Mangione (R-Baltimore County), "This is quite a nightmare for a lot of people."
"I have found, unfortunately, the presentation from Maryland 529 to just be completely tone-deaf," saidDel. Jheanelle Wilkins (D-Montgomery County).
"I don’t think that we are moving swiftly enough to fix this problem," saidDel. Darryl Barnes (D-Prince George’s County).
Executive Director Anthony Savia claims the math mistake was made by an antiquated, 20-year-old computer system that was overpaying on interest for years.
Under what Savia calls the correct calculation, parents like Heather Boley are now losing tens of thousands of dollars. In a 2021 statement she received from her Maryland 529 plan, Boley's total federal student aid reporting value was more than $94,000. With the new calculation formula, that value dropped to just $36,000.
"So, these families would have no idea that what they got in 2021 wasn’t accurate?" questioned Forbes.
"That is correct," said Savia.
Savia admitted, over the last year, "The agency did not communicate with the account holders like they should have," he said.
And yet, FOX45's countless requests for an interview with Savia have all been dismissed. In December,Maryland 529 spokesperson Michelle Winner claimed, "Tony [Savia] is focused on getting the payments issued as soon as possible and not available for an interview." But when a FOX45 reporter attempted to speak with him on Thursday, he refused.
"I’ve been trying to get an interview with you for months now and you pledged transparency is your most recent statement, why won’t you answer our questions?" asked a FOX 45 reporter.
Instead of responding, Savia slowly walked away as the reporter continued asking questions.
RELATED |"I'm scrambling" | Maryland 529 slashes college savings after years of overpaying interest
"You’re just ignoring us? You don’t think these families have a right to know what’s going on with their money? How can parents trust a state agency that won’t even answer their questions?" the reporter asked.
It remains unclear how the issue will be resolved.
Maryland 529 left the meeting promising to update lawmakers on their progress in a week.
"It’s a serious problem and we need very serious answers as fast as we can," saidMangione.