MARYLAND (WDVM) — Governor Larry Hogan announced that the Maryland Higher Education Commission (MHEC) has awarded about $9 million in tax credits to more than 9,000 Marylanders with student loan debt.

“Since its launch in 2017, more than 40,600 residents have benefited from the Maryland Student Loan Debt Relief Tax Credit Program,” said Governor Hogan. “Programs such as this allow for greater opportunities for our students and expanded options to assist with student loan debt, especially during this time when people are being squeezed by higher costs.”

“Maryland taxpayers who have incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least five thousand dollars in outstanding student loan debt are eligible to apply for the Student Loan Debt Relief Tax Credit,” a press release from the governor’s office said.

“We have now administered a total of $40,838,314 in tax credits to Maryland residents since the program originated,” said Maryland Secretary of Higher Education Dr. James D. Fielder. “MHEC remains committed to administering innovative programs like this, which promote and provide student success with less debt.” 

Hogan’s office said that when the taxpayer files their Maryland taxes, they claim the tax credit on their Maryland income tax return. If the credit is over the amount paid in taxes, they will get a tax refund for the difference.

For further clarity, officials gave this example:

If $800 in taxes is owed without the credit, and a $1,000 Student Loan Debt Relief Tax Credit is applied, the taxpayer will get a $200 refund.

For more information visit their website.