Economy

Student Stimulus Check From Maryland: Deadline Looms For Student Loan Debt Relief Tax Credit

Rising prices of food and other things have disrupted the budgets of many Americans. Thus, it is important that people avail themselves of all federal and state benefits that are still available. One such benefit is available to Maryland residents, who can still apply for the student loan debt relief tax credit. This student stimulus check from Maryland can give up to $1,000 to eligible recipients, and the deadline to apply is less than three weeks away.

When Is The Deadline?

Maryland’s student loan debt relief tax credit has been providing relief to residents for years now. More than 40,000 residents have received the tax credit since the start of the program in 2017, including about 9,000 residents who benefitted from this rebate last year.

According to a press release from the comptroller’s office, more than $40 million have been distributed through the program since 2017. The Maryland Higher Education Commission (MHEC) is responsible for administrating this program.

“Going to college may seem out of reach for many Marylanders given the huge expense, but tax credits like these help make it possible. I urge everyone to apply now before time runs out,” Comptroller Peter Franchot said in a press release.

Under the program, residents making eligible undergraduate and/or graduate education payments on loans from an accredited college or university can get an income tax credit.

The deadline to apply for this year’s student stimulus check from Maryland is September 15.

Student Stimulus Check From Maryland: Who Will Get It?

Residents don’t need to be college graduates to qualify for the tax credit, but to be eligible, they must claim Maryland residency for the 2022 tax year, as well as file 2022 Maryland state income taxes.

Another requirement is that the applicants must have had a student loan debt of at least $20,000 and the outstanding balance should be at least $5,000 at the time of applying for the tax credit.

Applicants with a higher debt burden to income ratio, graduates from a school in the state, those who didn’t get the tax credit already and were eligible for in-state tuition, will get priority. It is a requirement that the applicants use the tax credit toward their student loan debt, or else they will have to repay the credit.

A point to note is that applicants who went to a school outside Maryland will also be eligible for the tax credit, but their amount of tax credit may be smaller than those who went to a Maryland school. In 2021, those who went to school in-state got around $1,067 compared to $875 for those who went to an out-of-state school.

For more information on the program, including how to apply and eligibility requirements, visit the Maryland Higher Education Commission website. Also, applicants can contact the Maryland Higher Education Commission at 410-767-3300 or 1-800-974-0203 or visit https://mhec.maryland.gov/ for any questions about the program.

This article originally appeared on ValueWalk

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.