Maryland residents who are seeking to file a claim for up to $1,000 in student loan debt relief tax credits have just five days left to submit their paperwork.
The deadline to submit an application is Thursday, after which the state will close the portal. The tax credit is intended to help eligible residents who took out student loans to pay for their college tuition, and the tax credits will be available even if the applicant did not graduate.
WHAT TO KNOW ABOUT BIDEN’S STUDENT DEBT RELIEF PLAN AND HOW TO CLAIM IT
“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,” said Maryland Comptroller Peter Franchot. “Any way to bring down the cost of higher education is a big benefit.”
In order to become eligible for the tax credits, applicants must have claimed Maryland residency on their 2022 tax filings and have had at least $20,000 in student loans from either an undergraduate or graduate program, with $5,000 or more in outstanding debt at the time of the application, according to the state. The state will prioritize applications based on debt-to-income ratios, whether the applicant graduated from a Maryland university, whether the resident received a tax credit in the previous tax year, and if they were eligible for in-state tuition.
Maryland residents who did not attend a state school may be eligible for relief, but they may not receive as large of a tax credit.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Those who receive relief may be asked to prove they used the full amount of the tax credit to go toward their student loan payments; otherwise, they may be asked to repay the credit. More than 40,000 Marylanders have benefited from the state’s Student Loan Debt Relief Tax Credit Program since it was introduced in 2017, with the state distributing more than $40 million.
Applicants who partake in President Joe Biden’s student loan forgiveness offer can also apply for this tax credit as long as they meet the requirements, the Maryland Higher Education Commission told the Washington Examiner.
