ANNAPOLIS (WJZ) — Nearly 9,500 Maryland residents with student loan debt are being awarded tax credits, Gov. Hogan announced Friday.
The Maryland Higher Education Commission has awarded $9 million in tax credits to the residents with student loan debt.
“Student loan debt is a daunting and overwhelming burden for thousands of Marylanders,” said Governor Hogan. “These tax credits will help ensure access and success for students committed to furthering their education, while bolstering our economy. We are providing real solutions for our students and continuing to invest in making college more accessible and affordable for all Marylanders seeking a higher education.”
According a release from Hogan’s office, the tax credits were divided into two groups of eligibility- Maryland residents who attended a Maryland institution and those who attended an out-of-state institution.
There were 5,232 eligible applicants who attended in-state institutions that will each receive $1,000 in tax credits, while there were 4,263 eligible applicants attended out-of-state-institutions and will receive $883 in tax credits.
MHEC authorized a total of $5 million for the student Loan Debt Relief Tax Credit last year, according to the release.
“Governor Hogan has consistently made college affordability one of his administration’s top priorities and has worked with the Maryland Higher Education Commission to produce solutions for our students and graduates,” Maryland Higher Education Commission Secretary James Fielder said. “The reforms championed by the governor are providing relief to the hundreds of thousands of Marylanders who are currently burdened by student debt.”
Gov. Hogan also announced in the release the Student Debt Relief Act of 2019, which will reportedly allow Marylanders to deduct 100 percent of their student loans from their state income tax.
It will also expand the Maryland Community College Promise Scholarship Program to include four-year Maryland public institutions and double the deduction for families participating in Maryland 529 savings plans from $2,500 to $5,000, according to the governor’s office.