Some borrowers can still apply for up to $5,000 in student loan tax relief
Maryland residents with student loan debt have until Sept. 15, to apply for the state’s student loan debt relief tax credit, which offers up to $5,000 in relief for the 2025 tax year.
The program, active since 2017, aims to reduce financial pressure for borrowers at a time when federal student loan repayments and collections have resumed. To qualify, applicants must be Maryland residents for the 2025 tax year, have filed a state income tax return, and have at least $20,000 in original student loan debt with $5,000 still outstanding.
Maryland has allocated $9 million to the program this year, prioritizing certain groups such as state employees. While the maximum award is $5,000, most applicants are expected to receive between $1,800 and $1,870, according to state officials. In past cycles, about 85% of applicants received some form of credit.
The application process takes roughly 15 to 30 minutes, and the Maryland Higher Education Commission expects to notify award recipients by December, according to Newsweek. Funds must be applied directly to outstanding loan balances, and recipients must provide proof of payment within three years or risk repayment of the credit.
Read more: Newsweek
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