Governor Hogan Announces $9 Million in Additional Tax Credits for Student Loan Debt
ANNAPOLIS, MD (STL.News) Governor Larry Hogan announced nearly $9 million in tax credits to more than 9,000 Maryland residents with student loan debt, awarded by the Maryland Higher Education Commission (MHEC). To date, nearly $41 million in tax credits has been awarded to Maryland residents.
“Since its launch in 2017, more than 40,600 residents have benefited from the Maryland Student Loan Debt Relief Tax Credit Program,” said Governor Hogan. “Programs such as this allow for greater opportunities for our students and expanded options to assist with student loan debt, especially during this time when people are being squeezed by higher costs.”
Maryland taxpayers who 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 are eligible to apply for the Student Loan Debt Relief Tax Credit.
There were 9,155 Maryland residents who were awarded the 2021 Student Loan Debt Relief Tax Credit. The tax credits were divided into two groups of eligibility, including Maryland residents who attended a Maryland institution and Maryland residents who attended an out-of-state institution. There were 5,145 applicants who attended in-state institutions and will each receive $1,067 in tax credits, while 4,010 eligible applicants attended out-of-state institutions and will each receive $875 in tax credits.
Last year, MHEC awarded the Student Loan Debt Relief Tax Credit to 7,962 Maryland residents.
“We have now administered a total of $40,838,314 in tax credits to Maryland residents since the program originated,” said Maryland Secretary of Higher Education Dr. James D. Fielder. “MHEC remains committed to administering innovative programs like this, which promote and provide student success with less debt.”
The tax credit is claimed on the recipient’s Maryland income tax return when they file their Maryland taxes. If the credit is more than the taxes owed, they will receive a tax refund for the difference. For example, if $800 in taxes is owed without the credit, and a $1,000 Student Loan Debt Relief Tax Credit is applied, the taxpayer will get a $200 refund.
Under Maryland law the recipient must submit proof of payment to MHEC, showing that the tax credit was used for the purpose of paying down the qualifying student loan debt.
To learn more about the Maryland Student Loan Debt Relief Tax Credit Program, visit MHEC’s website.