Marylanders urged to apply for Student Loan Debt Relief Tax Credit

ANNAPOLIS, Md. – Comptroller Peter Franchot is urging eligible Marylanders to apply for the Student Loan Debt Relief Tax Credit by the upcoming deadline of September 15th.

The program is administered by the Maryland Higher Education Commission and provides an income tax credit for Maryland residents, making eligible undergraduate and/or graduate education payments on loans from an accredited college or university.

To qualify, you must claim Maryland residency for the 2022 tax year, file 2022 Maryland state income taxes, have incurred at least $20,000 in undergraduate and/or graduate student loan debt, and have at least $5,000 in outstanding student loan debt upon application for the tax credit.

MHEC will prioritize tax credit recipients and dollar amounts based on applicants who have higher debt burden to income ratios, graduated from an institution of higher education in Maryland, did not receive a tax credit in a prior year, and were eligible for in-state tuition. Students who do not attend an in-state institution are still eligible, however, they may not receive as large a tax credit as those who go to school in Maryland. You do not have to be a college graduate to qualify.

We’re told selected recipients will be asked to prove that they used the full amount of the tax credit for the repayment of eligible student loans, otherwise they may have to repay the credit.

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