AMERICANS have until September 15 to get a $5,000 debt relief payment from a $9 million pot.
The payment aims to support one of the most contentious debt types in the country, and affects one in four adults.
The payment aims to support one of the most contentious debt types in the country, and affects one in four adults[/caption]
Student loan repayments are one of the most prevalent forms of debt in the US.
Pew Research recently found that one in four adults under 40 carry student loan debt, typically between $20,000 and $25,000.
But Americans are being offered a financial relief to ease the struggle through the Maryland Higher Education Commission (MHEC).
The MHEC is now offering those in the state of Maryland the chance to receive the Student Loan Debt Relief Tax Credit.
The credit is available to state taxpayers who took out at least $20,000 in student loans.
For Maryland residents, this could save them thousands of dollars, with the application window closing on September 15.
Those deemed eligible can receive an average tax credit of about $1,870.
You could save up to $5,000 on your student loan repayments in the 2025 tax year, out of a $9 million pot.
Experts have urged those in Maryland to apply, given the high rate of those normally accepted.
Last year, nearly 85% of applicants qualified for some level of financial relief.
Kristin Clarkson, communications director at MHEC, told Baltimore station WMAR-2 News: “Most people that apply do qualify for some amount of money, so we want to make sure that people know, don’t count yourself out, because it is very likely that you will qualify for at least some amount of money.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “This is an incredible opportunity for in-state borrowers, especially those who are seeing interest starting to accrue after years of a pause on accumulation.”
HOW TO BE ELIGIBLE
There are a few eligibility requirements to be aware of before applying.
Primarily, you need to be a Maryland tax payer who maintains Maryland residency for the 2025 tax year.
What’s a good credit score?
FICO, the most widely known credit scoring system, and its rival VantageScore both use a range of 300-850 points.
Below we list what’s considered a good and bad credit score, according to both systems.
FICO
- Poor: 300-579
- Fair: 580-669
- Good: 670-739
- Very good: 740-799
- Exceptional: 800 or above
VantageScore
- Very poor: 300-499
- Poor: 500-600
- Fair: 601-660
- Good: 661-780
- Excellent: 781-850
You also need to have filed a state income tax return in Maryland,as well as having at least $5,000 in outstanding student loan debt at the time of application.
Apart from the $20,000 loan minimum, you also need to be actively paying back your student loans when you apply.
Applicants may apply each year without a cap, but need to present the necessary documents from their loan services and tax prepares.
Those deemed eligible must apply the credit from the MHEC directly to their student debt.
The money cannot be used for anything else.
As a borrower, you have three years to show proof that the full credit amount was paid toward their loan.
If you fail to do this, the state will reclaim the tax credit through the Comptroller’s Office.
Further details and application materials can be found on the MHEC website.
The Maryland Higher Education Commission will notify successful candidates by December 2025.
The MHEC is now offering those in the state of Maryland the chance to receive the Student Loan Debt Relief Tax Credit[/caption]
