ANNAPOLIS, Md. (August 23, 2022) – Comptroller Peter Franchot urges eligible Marylanders to act fast and apply for the Student Loan Debt Relief Tax Credit Program for Tax Year 2022. Applications must be submitted by September 15.
“Going to college may seem out of reach for many Marylanders given the huge expense, but tax credits like these help make it possible. I urge everyone to apply now before time runs out,” Comptroller Franchot said. “Any way to bring down the cost of higher education is a big benefit.”
The program, which is administered by the Maryland Higher Education Commission (MHEC), 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 be eligible, 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 applying 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 located 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 for the tax credit, but 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.
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, recipients may have to repay the credit.
More than 40,000 Marylanders have benefited from the tax credit since it was introduced in 2017. with more than $40 million distributed through the program.
In 2021, 9,155 Maryland residents received the Student Loan Debt Relief Tax Credit. Those who attended in-state institutions received $1,067 in tax credits, while eligible applicants who attended out-of-state institutions received $875 in tax credits.
For more information or if you have additional questions, contact the Maryland Higher Education Commission at 410-767-3300 or 1-800-974-0203 or visit https://mhec.maryland.gov/