Maryland residents looking to claim student loan debt relief must do so in less than two weeks.
Eligible people have until Sept. 15 to apply for a Student Loan Debt Relief Tax Credit of up to $1,000. The credit’s goal is to aid residents of the Chesapeake Bay state who took out college loans.
To qualify for the tax credit, applicants who attended a Maryland institution must have filed their state income taxes and have a student loan of at least $20,000 while maintaining $5,000 or more in unpaid debt, according to a Southern Maryland Chronicle report. Recipients do not need to have graduated from college to qualify for the credit.
Out-of-state applicants are eligible as well but may not receive as large of a credit. Recipients must also prove the credit will go toward paying loans, the report said, or else they may have to pay the full amount of the credit.
The tax credit program, in place since 2017, has assisted over 40,000 Maryland residents. In 2021, approximately 9,155 state residents received the credit, with those who attended in-state institutions receiving $1,067. Those attending out-of-state institutions received $875, according to the report.
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“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 time runs out,” Maryland Comptroller Peter Franchot said in the report. “Any way to bring down the cost of higher education is a big benefit.”
Maryland is among several states seeking to provide financial relief to residents. States such as Connecticut, Illinois, New York, Pennsylvania, and Rhode Island installed tax rebates or one-time direct payments to residents in various cities.
