There's good news for Maryland residents who have incurred at least $20,000 in undergraduate and/or graduate student loan debt: you may be eligible for a Maryland tax credit.
Am I Eligible for the Credit?
To be eligible for the Student Loan Debt Relief Tax Credit, you must:
- Maintain Maryland residency for the 2020 tax year;
- Have incurred at least $20,000 in undergraduate and/or graduate student loan debt;
- Have at least $5,000 in outstanding student loan debt remaining when applying for the tax credit;
- Have completed and submitted an application to the Maryland Higher Education Commission by September 15, 2020; and
- Have submitted all required graduate and/or undergraduate student loan information, including Maryland income tax information and college transcripts
How Much Is the Credit Worth?
The credit can be worth up to $5,000. With that money saved on your Maryland taxes, you must use the credited amount to pay down your student loan debts in either a one-time payment or through monthly payments during the two year period after the credit has been awarded.
How Do I Apply?
To apply, you must submit an application to the Maryland Higher Education Commission by September 15, 2020. Note that you must include a copy of your undergraduate and/or graduate transcripts for the loan years in which you incurred the debts.
To apply online, click here and look for the blue "Apply Online" button.
To download a copy of the application, click here.
Need Help?
There's a list of frequently asked questions here. Contact us online or call 800.899.4623.
Published on August 27, 2020