bigstock-Business-Team-Professional-Occ-115816337.jpg
                          The Tax Credit Deadline was September 15th.   Please Check Back                              ​                                     on July 1, 2019 to Apply for Next Year's Tax Credit.

 
Student Loan Debt Relief Tax Credit

  

Who is eligible to receive the Student Loan Debt Relief Tax Credit?
 

The tax credit will be available to Maryland taxpayers who:
 

1.  File Maryland State Income Taxes for the tax year;


2.  Have incurred at least $20,000 undergraduate and/or graduate student loan debt; 


3.  Have at least $5,000 in outstanding student loan debt remaining when applying for the tax credit;


4.   Have completed and submitted an application to the Maryland Higher Education Commission postmarked by September 15, 2018; and


5.   Have submitted all required graduate and/or undergraduate student loan information, including Maryland Income Tax Information and college transcripts.

How does MHEC decide who receives Tax Credits each year?

MHEC follows the statutory law and regulations when prioritizing who will receive tax credits in any year. Section 10-740(D) of the Tax General Article of the Annotated Code of Maryland states: “The Commission shall prioritize tax credit recipients and amounts based on qualified taxpayers who: (1) have higher debt burden to income ratios; (2) graduated from an institution of higher education located in the State; (3) did not receive a tax credit in a prior year; and (4) were eligible for in-State tuition.”  See also 13B.08.17.05 of the Code of Maryland Regulations (COMAR).

How to Apply for the Student Loan Debt Relief Tax Credit

To download the application, ​or Maryland Student Loan Debt Relief Tax Credit Application 2018.pdfMaryland Student Loan Debt Relief Tax Credit Application 2018.pdf​​

If you have questions, please view the Frequently Asked Questions 2018.pdfFrequently Asked Questions 2018.pdf for more information.

*Please be reminded that this is not a check, but rather a tax credit on your 2018 Maryland Taxes.

​​​​​​​​Proof of Payment to Lender

 

Upon receiving the Student Loan Debt Relief Tax Credit for 2018, each recipient must use the credit within two years to pay down the balance of the student loan debt.  Failure to do so will result in recapture of credit back by the State.

 

Recipients of the Student Loan Debt Relief Tax Credit have two option for debt repayment:

(1) Make a one-time payment for the amount of your tax credit to the lender, or

(2) Make monthly payments to the lender until the amount of the tax credit is paid to the lender

 

Providing Documentation of Proof of Payment:

(1) One-time payment - A copy of transaction log from the lender providing proof that amount was paid to the lender

(2) Monthly Payments - A copy of transaction log from the lender showing monthly payments totaling the amount of the credit

 

Mail All Proof of Payments to:

Maryland Higher Education Commission

Student Loan Debt Relief Tax Credit

6 N. Liberty Street, 10th floor

Baltimore, MD 21201

 

PLEASE PROVIDE A VALID EMAIL ADDRESS ALONG WITH PROOF OF PAYMENT. Upon receiving documentation, a confirmation email will be sent.

 

For more information email us at studentdebttaxcredit.mhec@maryland.gov​.

 

                     The Tax Credit Deadline was September 15th.   Please Check Back                                                                   on July 1, 2019 to Apply for Next Year's Tax Credit.​

 

If you have a complaint about your student loan servicer and need information on what steps you can take to resolve your concerns, you can contact the Maryland Student Loan Ombudsman at https://www.dllr.state.md.us/finance/consumers/frslombud.shtml​​

 

 ​

​​
​​​