As students return to colleges and universities — many for the first time in more than a year — COVID-19 lingers and continues to impact their collegiate experience.
At the same time, another dilemma looms large for many students and their families: How to pay for that education.
As Maryland’s Comptroller, I want to make sure all taxpayers have the information they need to receive any tax relief possible. Maryland’s Student Loan Debt Relief Tax Credit can help save you money, but you need to act fast because the deadline to apply is Sept. 15.
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.
These include loans obtained in pursuit of an associate, bachelor’s, master’s, professional graduate, doctoral or post-doctoral degrees.
To be eligible, you must also meet these criteria:
- File 2021 Maryland state income taxes.
- 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.
Applications for this credit must be sent by Sept. 15. You’ll need to provide the required graduate and/or undergraduate student loan information, including Maryland income tax information and college transcripts.
MHEC will prioritize tax credit recipients and amounts based on qualified taxpayers 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.
Selected recipients must show that they used the full amount of the tax credit for the repayment of eligible student loans. If that cannot be verified, you may have to repay the credit.
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 https://mhec.maryland.gov/.
And, of course, I want to extend my best wishes to students, parents, faculty, support staff and administrators embarking on another semester at all our fantastic colleges and universities.