07-08-2025
Student loan borrowers in Maryland eligible for up to $5,000 in relief
Marylanders with student loans can get up to $5,000 in relief by applying for the Student Loan Debt Relief Tax Credit for the 2025 tax season.
Borrowers can apply for the tax credit through the Maryland Higher Education Commission through September 15. Most taxpayers who apply will get an average of $1,800, according to Director of Communications for the MHEC Kristin Clarkson.
To be eligible, you must be a Maryland taxpayer who has incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least $5,000 in outstanding debt at the time of applying for the tax credit.
The program has been around since 2017. A total of $9 million has been allocated by the Maryland General Assembly for the 2025 tax year, down from $17 million last year, according to Clarkson.
Last year, about 85 percent of people who applied received some money, Clarkson said.
Marylanders completing a program at a 4-year public institution come out with about $22,000 of debt, and at HBCU institutions, it's about $28,000, according to Clarkson.
"Any little bit helps whenever you're paying down those student loans, especially with a lot of people coming back into repayment based on things that are happening on the Federal level," said Clarkson. "So, we are just here to make sure that people know about this credit and do what they can to try to benefit from it."
You can apply for the Student Loan Debt Relief Tax Credit here. The application takes about 15-30 minutes to complete and closes on September 15, 2025.
The Maryland Higher Education Commission will notify applicants who will receive funds by December 2025. If you do receive funds, you will have three years to show you've applied the money to your balance with your lender or be required to pay back the funds.
