In 2017, 65% of graduates from public and private nonprofit colleges had student loans. Nationally, students left school with an average of $28,650 in student loans. In comparison, Maryland students had an average of $29,300 in student loans.
Student loan debt makes it harder for individuals to pay monthly bills and balance financial obligations relating to childcare, housing, and health care. The burden of student loan debt may also affect home buying as well as saving for retirement.
Fortunately, Maryland’s Student Loan Debt Relief Tax Credit is available to Maryland taxpayers who have at least $20,000 in student loan debt. In 2018, more than 9,494 Marylanders were eligible for student loan debt relief and the state awarded more than $9 million in tax credits.
To be eligible for the Tax Credit, you must:
1. Complete and submit an application to the Maryland Higher Education Commission by September 15th, either electronically or through the post office;
2. Maintain Maryland residency for the 2019 tax year;
3. Have incurred at least $20,000 in undergraduate and/or graduate student loan debt; and
4. Have at least $5,000 in outstanding student loan debt remaining when applying for the tax credit.