Baltimore, MD – (August 20, 2018) –Maryland Higher Education Commission
(MHEC) Secretary Dr. James D. Fielder announced that applications for the
2018 Student Loan Debt Relief Tax Credit are now being accepted.
This year, both undergraduate and graduate student debt is eligible for the
tax credit, and the application can be downloaded by going to
www.mhec.maryland.gov and clicking on File for the 2018 Tax Credit
Quick Links. This is not a check, but rather a tax credit on the former or
current student’s 2018 Maryland taxes.
College debt is now estimated to be $1.48 trillion nationwide and the
average debt in Maryland is $27,455 per student. Governor Larry Hogan has
consistently made college affordability one of his administration’s top
priorities and has worked with the Maryland Higher Education Commission to
produce solutions for our students and graduates. The reforms championed by
the governor will provide much-needed relief to the hundreds of thousands
of Marylanders who are currently burdened by student debt.
“This tax credit is an innovative example of how Marylanders can achieve
student success with less debt,” Secretary Fielder said. “As students
increasingly pay off their student debt, they will see increasing
opportunities to invest in their future outside of the classroom. This
could mean homeownership or other investments.”
The tax credit will be available to Maryland taxpayers who:
- File Maryland State Income Taxes for the 2018 tax year;
- Have incurred at least $20,000 undergraduate and/or graduate student
- Have at least $5,000 in outstanding student loan debt remaining when
applying for the tax credit;
- Have completed and submitted an application to the Maryland Higher
Education Commission by September 15, 2018;
- Have submitted all required graduate and/or undergraduate student loan
information, including Maryland income tax information and college transcripts; and
- Must agree to pay the complete tax credit received into their
outstanding loan balance within two years and provide a record of the payment.
Further, Governor Hogan recently announced that he will introduce emergency
legislation on the first day of the 2019 legislative session, allowing
Marylanders to deduct 100 percent of the interest paid on their student
loans from their income tax return. Since taking office, the Hogan
administration has been working to make college more affordable by
investing more than $7.1 billion in higher education and providing easier
access to financial aid and student debt relief resources.