Marylanders, you still have time to apply for student loan debt relief tax credit

Heather Jauquet

Applications close on September 15, 2021

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Did you know that Maryland college students can apply for student loan debt relief credit? It is for Maryland residents who are still making loan payments for an undergraduate or graduate degree of study.

Who is eligible?

Maryland taxpayers who have incurred at least $20K in undergraduate or graduate student loan debt can apply for the Student Loan Debt Relief Tax credit. 

If you are a student who has incurred loan debt to obtain any of the following degrees: associate, bachelor, master's, professional graduate, doctoral, or post-doctoral, you are eligible to apply for the tax credit. You must have incurred at least $20K in student loans and have at least $5K in outstanding student loans. 

Who may apply

Maryland taxpayers who have maintained Maryland residency for the 2021 tax year can apply to the program. 

How to apply

To apply, Marylanders need to complete the Student Loan Debt Relief Tax Credit application.

The deadline closes at 11:59pm on September 15, 2021.

The free online application takes 10-30 minutes to complete. Approval takes 90 to 135 days. 

To be considered for the tax credit, it is imperative to follow the directions carefully on the application. Any applications containing errors or omissions will be rejected and will lose priority in the review process.

10 Things to know when applying

  1. Use a permanent email address. Do not use a work or college email address. A permanent email address is required to issue tqax credits and all correspondence with the Student Loan Debt Relief Tax Credit program.
  2. You will need supporting documentation in a PDF format. Your supporting documentation needs to include the following: 1) Loan debt information in the borrower’s name and it must be the same person as the applicant 2) A copy of your Maryland income tax return for the most recent prior tax year 3) Include only the undergraduate and/or graduate transcripts that correspond to your college loan debt documentation.
  3. You will need to provide the total student amount incurred and the eligible loan balance still due at the application submission. 
  4. Your Maryland Adjusted Gross Income, line 16 on form 502 of your Maryland State Income Tax return. 
  5. You need to provide the names, location, dates of any colleges or universities you attended, and your degrees. You will also need to indicate if you were charged Maryland in-state intuition.  
  6. You need to indicate if you have ever applied for the tax credit if you were awarded a tax credit, the year it was granted, and when you provided the required information to the Commission.
  7. Remember to SIGN the application.
  8. Provide any follow-up documentation if you have received any tax credit and show that you used the total amount of the tax credit on outstanding student loan debt.
  9. You can submit a hard copy instead of an online application.
  10. Direct all questions to studentdebttaxcredit.mhec@maryland.gov

Good luck, and may the odds be ever in your favor!

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Heather Jauquet writes articles centered around the DMV and her adventures in other local communities. Follow her to get information about Montgomery County education, government, and community news. When she's not writing, she's running. Got a story to share? Email her: hjauquet@gmail.com

Gaithersburg, MD
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