The Maryland Higher Education Commission’s deadline to check eligibility for tax credits to help pay off student loan debt is Sept. 15. A total of $18 million in tax credits is available to state residents filing their 2023 tax returns via the Student Loan Debt Relief Tax Credit program.
To be eligible, applicants must claim Maryland residency for the 2023 tax year, file 2023 Maryland state income taxes, have initially incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least $5,000 in outstanding student loan debt at the time of application for the tax credit.
This year, Maryland State employees with student loan debt will be given awarding priority. Everyone who applies must be currently making undergraduate and/or graduate education loan payments. Those who receive the tax credit will be required to prove they used the full amount of the tax credit towards the payment of their eligible student loans. Otherwise, the recipient will have to return the credit.
To apply, go to www.mhec.maryland.gov/preparing/pages/studentloandebtrelieftaxcredit.aspx.