Hogan announces $9 million in student loan debt relief
Nearly 10,000 Maryland students will be seeing additional tax credits for student loan debt, Gov. Larry Hogan said.
The governor announced in a news release that nearly $9 million in tax credits will be granted to residents who have student loan debt, which will be awarded through the Maryland Higher Education Commission.
“Since its launch in 2017, more than 40,600 residents have benefited from the Maryland Student Loan Debt Relief Tax Credit Program,” Hogan said in the release. “Programs such as this allow for greater opportunities for our students and expanded options to assist with student loan debt, especially during this time when people are being squeezed by higher costs.”
Taxpayers who have incurred at least $20,000 in undergraduate, or graduate, student loan debt and have a minimum of $5,000 in outstanding student loan debt are eligible to apply for Student Loan Debt Relief Tax Credit, according to the release.
In 2021, 9,155 residents were awarded credits under the program, according to the release. Tax credits are divided into groups of eligibility, one for Maryland residents attending an in-state institution and Maryland residents attending college out of state.
The 5,145 applicants attending in-state institutions, according to the release, will receive $1,067 in tax credits, while the 4,010 eligible applicants attending out-of-state schools stand to receive $875 in tax credits.
The program, according to the release, benefited 7,962 Maryland students last year.
“MHEC remains committed to administering innovative programs like this, which promote and provide student success with less debt,” Maryland Secretary of Higher Education Dr. James D. Fielder said in the release.
The credit is to be claimed on the recipient’s state income tax return when they file their taxes. Should the credit be more than the taxes owed, the students will receive a tax refund for the difference.
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