Applications for the 2018 Student Loan Debt Relief Tax Credit are now being accepted, Maryland Higher Education Commission Secretary James Fielder announced Monday.
This year, both undergraduate and graduate student debt is eligible for the tax credit. The application is available for download on the MHEC’s website.
Successful applicants will not receive a check, but rather a tax credit on their 2018 Maryland taxes.
“This tax credit is an innovative example of how Marylanders can achieve student success with less debt,” Fielder said in a statement. “As students increasingly pay off their student debt, they will see increasing opportunities to invest in their future outside of the classroom. This could mean homeownership or other investments.”
The tax credit will be available to Maryland taxpayers who:
- File Maryland state income taxes for the 2018 tax year;
- Have incurred at least $20,000 undergraduate and/or graduate student loan debt;
- Have at least $5,000 in outstanding student loan debt remaining when applying for the tax credit;
- Have completed and submitted an application to the Maryland Higher Education Commission by Sept. 15, 2018;
- Have submitted all required graduate and/or undergraduate student loan information, including Maryland income tax information and college transcripts; and
- Must agree to pay the complete tax credit received into their outstanding loan balance within two years and provide a record of the payment.
Gov. Larry Hogan recently announced plans to introduce emergency legislation during the 2019 legislative session that would allow Marylanders to deduct 100 percent of the interest paid on their student loans from their income tax return.