Americans who have until September 15 to receive $5,000 in debt relief – Nearly all applicants may qualify

If you are struggling with student loan debt and live in Maryland, there is some good news—you could get up to $5,000 in debt relief, but you have to act before September 15.

This opportunity is coming from the Maryland Higher Education Commission (MHEC). It is called the Student Loan Debt Relief Tax Credit, and it is designed to help state residents who are paying off student loans. The best part is, nearly 85% of people who applied last year got approved.

What is the student loan debt relief tax credit?

This is a state-run program that provides a tax credit to Marylanders who are actively paying off their student loans. The money comes from a $9 million fund, and it is meant to reduce the financial burden on people who borrowed money for college. The average credit amount is $1,870 but some people may get as much as $5,000 and last year, most applicants qualified for some amount of relief.

Also, Kristin Clarkson, MHEC’s communications director, told WMAR-2 News,

“Most people that apply do qualify for some amount of money, so we want to make sure that people know, do not count yourself out, because it is very likely that you will qualify for at least some amount of money.”

Who qualifies for the maryland student loan tax credit?

To be eligible, you need to meet a few basic requirements:

• You must be a Maryland taxpayer
  
• You need to maintain Maryland residency for the 2025 tax year
  
• You must have at least $5,000 in outstanding student loan debt
  
• You must have borrowed a minimum of $20,000 in student loans
  
• You should be actively making payments on your loans when you apply
  
• You need to have filed a state income tax return in Maryland

So if you are a Maryland resident making regular student loan payments, there is a good chance you qualify.

How to apply for the tax credit

If you think you are eligible, here is how you can apply:

1. Visit the Maryland Higher Education Commission’s website
   
2. Look for the Student Loan Debt Relief Tax Credit application
   
3. Submit your loan documents and tax return information
   
4. Be sure to apply before the September 15 deadline

You can apply every year, and there is no lifetime cap on how many times you can qualify. That means you might be able to benefit from this more than once.

How is the credit used?

This is very important: The money does not come as a check you can spend on anything you want. Instead, it is applied directly to your student loan balance.

Also, once you receive the credit:

• You have three years to show that you used it to pay down your student loan
  
• If you fail to prove this, the state may reclaim the credit through the Comptroller’s Office

So, you will want to keep track of your payments and keep receipts or loan statements to show that you followed the rules.

Why you should not wait to apply

With a deadline of September 15, time is running out to take advantage of this offer. Alex Beene, a financial literacy instructor at 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.”

Whether your loan is private or federal, interest adds up quickly. Any money that helps reduce your balance—even a few thousand dollars—can save you big over time.

Where to get more information

You can find everything you need to apply—including eligibility details and required documents—on the Maryland Higher Education Commission website.

If you are a Maryland resident with student loans, do not miss this. You could be one of the many who qualify for serious relief.

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