Marylanders paying off their student loans still have time to apply for debt relief to help reduce the amount they still owe.
Marylanders paying off their student loans still have time to apply for debt relief to help reduce the amount they still owe.
The deadline for the State Student Loan Debt Relief Tax Credit program for the 2022 tax year is September 15.
“Going to college may seem out of reach for many Marylanders given the huge expense, but tax credits like these help make it possible. I urge everyone to apply now before the time is up,” Comptroller Peter Franchot said. “Any way to reduce the cost of higher education is a big plus.”
The program works by providing an income tax credit to residents of Maryland who make qualifying undergraduate and/or graduate education payments on loans from an accredited college or university. It is administered by the Maryland Higher Education Commission (MHEC).
You do not need to be a college graduate to qualify, but you must declare Maryland residency for the 2022 tax year and file 2022 Maryland state income taxes to qualify. be eligible. You must also have borrowed at least $20,000 in student loan debt and still have an outstanding balance of at least $5,000 when applying for the tax credit.
Applicants who have a higher debt-to-income ratio, graduated from a Maryland school, did not earn a tax credit the previous year, and were eligible for in-state tuition will be given priority. If you attended an out-of-state school, you are still eligible for the tax credit, but you may not receive as large an amount as those who attended a school in Maryland.
More than 40,000 Marylanders have received the tax credit since it was introduced in 2017, and more than $40 million has been distributed through the program, according to a press release from the comptroller’s office.
Some 9,000 residents received the credit in 2021, with those who went to school in the state receiving more than $1,000 and $875 for out-of-state schools.
For more information on the application process, visit the Maryland Commission on Higher Education website.
On Wednesday, President Joe Biden is expected to announce a decision to cancel up to $10,000 in federal student loans for many Americans and extend the payment pause until January, the Associated Press reported.
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