Questions & Answers

Can I claim the Student Loan Debt Relief Tax Credit?

You can claim the Student Loan Debt Relief Tax Credit if you meet the following conditions:

  1. You have incurred at least $20,000 in total undergraduate and/or graduate student loan debt.
  2. You have at least $5,000 in outstanding undergraduate student loan debt when you submitted an application for certification to the Maryland Higher Education Commission.

The maximum credit is $5,000. The refundable tax credit must be claimed against the State income tax for the taxable year in which the Maryland Higher Education Commission certifies the tax credit.

If you want to take the credit, you must submit an application to the Maryland Higher Education Commission by September 15th of each year. You can use Maryland's OneStop website  to apply.

The Maryland Higher Education Commission will give priority to qualified taxpayers who:
  1. Have higher debt burden to income ratios;
  2. Graduated from an institution of higher education located in Maryland;
  3. Did not receive a tax credit in a prior year; or
  4. Were eligible for in-state tuition.

The total amount of the credit claimed shall be recaptured if you don't use the credit for the repayment of the undergraduate student loan debt within 2 years.

For more information contact:
Maryland Higher Education Commission
6 North Liberty Street
Baltimore, MD 21201
Phone: (410) 767-3300 or (800) 974-0203

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