People living in Maryland have under a week to claim a student loan debt relief tax credit of up to $1,000.
The tax credit, intended to help eligible state residents who took out student loans to pay for college, is accepting applications until its deadline on Sept. 15. State residents can still apply for the credit even if they did not graduate college.
“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 a Southern Maryland Chronicle report. “Any way to bring down the cost of higher education is a big benefit.”
Since the program started in 2017, over 40,000 people have benefited from it. In 2021, approximately 9,155 residents received the credit, with people who attended in-state institutions receiving $1,067 in financial relief and people who attended out-of-state institutions receiving $875, according to the report.
Qualified applicants must have filed state income taxes in Maryland and have at least $20,000 in student loans while maintaining at least $5,000 or more in unpaid debt. Applicants who partake in President Joe Biden’s student loan forgiveness offer can still apply for this tax credit as long as they still meet the requirements, the Maryland Higher Education Commission told the Washington Examiner.
Anyone who went to out-of-state institutions and applied for this credit may have smaller credits compared to those who went to colleges and universities in Maryland, according to the state. The credit must be used to help with student loan debt, or else the applicant may have to repay it.