How to apply for Maryland’s student loan debt relief tax credit
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?
Applicant submits application
MHEC reviews application
MHEC makes an award decision and notifies applicants via email
Applicants that have been awarded provide proof of college loan payments
Where can I find the Maryland Student Loan Debt Relief Tax Credit?