Maryland offers an income tax credit for residents making eligible undergraduate and/or graduates education payments on loans from an accredited college or university. To be eligible, you must claim Maryland residency for the 2022 tax year, file 2022 Maryland state income taxes, have incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least $5,000 in outstanding student loan debt upon applying for the tax credit. More details are available here.
President Joe Biden has also announced this week that the Department of Education will be canceling $10,000 in student loans and $20,000 for those receiving Pell grants. Eligible recipients must have an income below $125,000 a year. Additionally, there will be a monthly cap for repayments of 5% of the individual’s yearly income. The decision made by the administration on Wednesday comes after several extensions to the student loan moratorium that is to end on January 2023.