Maryland residents have only two days left to file a claim for up to $1,000 in student loan debt relief tax credits.
The tax credit, which is accepting applications until Thursday, is intended to help eligible state residents who took out student loans to pay for college. People living in Maryland can apply for the credit even if they did not graduate college.
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“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,” Maryland Comptroller Peter Franchot said in a Southern Maryland Chronicle report. “Any way to bring down the cost of higher education is a big benefit.”
Since the program started in 2017, over 40,000 people have benefited from it. In 2021, approximately 9,155 residents received the credit, with people who attended in-state institutions receiving $1,067 in financial relief and people who attended out-of-state institutions receiving $875, according to the report.
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. Maryland residents who did not attend a state school may be eligible for relief, though they may have smaller credits compared to those who attended schools in-state.
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The credit must be used to help with student loan debt, or else the applicant may have to repay it. Applicants who participate in President Joe Biden’s student loan forgiveness offer can also apply for this tax credit as long as they still meet the requirements, the Maryland Higher Education Commission told the Washington Examiner.
The state will prioritize applications based on debt-to-income ratios, graduation from a Maryland university, tax credits in the previous tax year, and eligibility for in-state tuition.
