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How to apply for Maryland’s student loan debt relief tax credit

Posted: 11.28

Since 2017, Maryland’s student loan debt relief tax credit has provided over $40 million to over 40,000 Marylanders.  In 2021, approximately 9,000 Maryland residents received a tax credit between $875 and $1,000.

Here are the facts you need to apply.

What is the Maryland Student Loan Debt Relief Tax Credit Program’s deadline?

The deadline for the 2022 tax year is September 15.

How does the program work?

Maryland residents who are making undergraduate and/or graduate education loan payments from accredited colleges or universities may be eligible for an income tax credit.

Do you have to be a college graduate to qualify?

No, you do have to be a college graduate to apply.

How do you qualify?
  • You must claim Maryland residency for the 2022 tax year
  • You must file 2022 Maryland state income taxes
  • You must have borrowed at least $20,000 in student loans
  • You must have an outstanding student loan balance of at least $5,000
How are selections made?

Applicants who meet the following criteria receive selection priority:

  • Graduated from a Maryland college or university
  • Have a higher debt burden to income ratio
  • Did not receive a tax credit last year
  • Were eligible for in-state tuition
I am a Maryland resident but attended an out-of-state college.  Do I qualify for the tax credit?

If you attended an out-of-state college or university you are eligible but may receive a smaller amount than a resident who attended a Maryland school.

What is the application process?
  1. Applicant submits application
  2. MHEC reviews application
  3. MHEC makes an award decision and notifies applicants via email
  4. Applicants that have been awarded provide proof of college loan payments
Where can I find the Maryland Student Loan Debt Relief Tax Credit?

To apply for the tax credit, visit the Maryland Higher Education Commission’s website to access the online application.  For application assistance, check out the How to successfully fill out your Student Loan Debt Relief Tax Credit Application podcast.

Are there any other student loan debt payment programs?

President Biden announced the student loan forgiveness plan and the extension of the student loan payment freeze.  Check out Do you qualify for Biden’s student loan forgiveness plan?