Governor Larry Hogan today announced that the Maryland Higher Education Commission (MHEC) has awarded $9 million in tax credits to nearly 9,500 Maryland residents with student loan debt. Nationally, student loans exceed $1.48 trillion and Maryland’s average is $27,455 per graduate.
“Student loan debt is a daunting and overwhelming burden for thousands of Marylanders,” said Governor Hogan. “These tax credits will help ensure access and success for students committed to furthering their education, while bolstering our economy. We are providing real solutions for our students and continuing to invest in making college more accessible and affordable for all Marylanders seeking a higher education.”
More than 9,494 students were eligible for the student loan tax credits. The tax credits were divided into two groups of eligibility: Maryland residents who attended a Maryland institution and those who attended an out-of-state institution. There were 5,232 eligible applicants who attended in-state institutions and will each receive $1,000 in tax credits, while 4,263 eligible applicants attended out-of-state institutions and will receive $883 in tax credits. Last year, MHEC authorized a total of $5 million for the Student Loan Debt Relief Tax Credit.
“Governor 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,” Maryland Higher Education Commission Secretary James Fielder said. “The reforms championed by the governor are providing relief to the hundreds of thousands of Marylanders who are currently burdened by student debt.”
To further address the student debt burden, Governor Hogan has introduced the Student Debt Relief Act of 2019, which will allow Marylanders to deduct 100% of the interest paid on their student loans from their state income tax. It will also expand the Maryland Community College Promise Scholarship Program to include four-year Maryland public institutions and double the deduction for families participating in Maryland 529 savings plans from $2,500 to $5,000. The governor is urging the Maryland General Assembly to work with his administration to pass this critical bill during the current legislative session.
Since taking office, Governor Hogan has invested more than $7.1 billion in higher education and has diligently worked with Maryland’s public colleges and universities to cap tuition growth at two percent annually for Maryland residents at these schools. To learn more about the program and apply for next year's tax credit, visit: Student Loan Debt Relief Tax Credit.