ANNAPOLIS - Comptroller Peter Franchot urges eligible Marylanders to act fast and apply for the Student Loan Debt Relief Tax Credit Program for Tax Year 2021. Applications must be submitted by Sept. 15.
“It’s regrettable that the cost of higher education is preventing many people from pursuing their college dreams,” Comptroller Franchot said. “The Student Loan Debt Relief Tax Credit is a fantastic way to make college more affordable and I encourage all eligible Marylanders to apply by Sept. 15.”
The program, which is administered by the Maryland Higher Education Commission, 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 2021 tax year, file 2021 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.
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.
Nearly 10,000 Marylanders received the tax credit in each of the last few years, costing the state about $9 million annually.
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 the website.