Eligible residents of the Chesapeake Bay state have until Sept. 15 to apply for the tax credit which is aimed at helping individuals who took out student loans to pay for college or university.
Eligible applicants must have filed their state income taxes and have amassed student loans of at least $20,000 while maintaining $5,000 or more in unpaid debt. Graduating from the college or university the individual took out loans to attend is not a requirement for the tax credit.
“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 to the Southern Maryland Chronicle. “Any way to bring down the cost of higher education is a big benefit.”
Individuals who studied at out-of-state institutions may have smaller tax credits when compared to those who went to colleges and universities within Maryland, according to the state. The state also says the tax credit must be used to help with student loan debt, if it is used for other purposes the individual may have to repay the credit.
Approximately 9,155 state residents received the credit in 2021, with students who attended in-state colleges and universities receiving about $1,067 in relief per taxpayer and those who attended out-of-state colleges and universities receiving about $875 per taxpayer, according to the report.
Information about the program and applications for the tax credit is available on the state’s website.