Maryland Student Loan Forgiveness Programs | Loan Repayment Programs

Here in this blog post, you will find details about the Maryland student loan forgiveness program, loan repayment programs, and more.

Maryland may be a small state, but it’s bursting with opportunity, and education is no exception. 

Whether you’ve lived in Maryland forever or are planning to move, the appeal of attending schools in Maryland is clear. There are certainly great universities out there. 

Add in the charm of the scenic Chesapeake Bay, delicious blue crabs, and a baseball game at Camden Yards, and you have a great college experience.

  If you’re convinced you should apply to a school in the state known as “Little America,” let us help you find ways to make it as affordable as possible. 

As you can see, most students in the state receive financial aid and have many options. Let’s take a closer look at how to fund higher education. 

The Institute for College Access & Success reports that more than half of students who enroll in a four-year university in Maryland leave with debt from student loans. 

For instance, the graduating class of 2018–2019 had an average debt of about $30,000. 

Thankfully, the state of Maryland has acknowledged the increased cost of higher education. 

Maryland has created a number of loan forgiveness and repayment programs as part of its attempts to aid students with their student loan debt.

See Also: Student Loan Forgiveness for Nurses in Kentucky | Review

Average Student Loan Debt in Maryland

Most Maryland students do take out loans to finance their education in this exciting Mid-Atlantic state. 

Here’s how the numbers stack up: As of 2020, 55% of Maryland college attendees had student loan debt. On average they owed $30,461.

Maryland Student Loan Forgiveness

If you’ve taken out student loans to attend school in Louisiana, it’s never too early to start thinking about a repayment plan. 

And guess what? There are several payment methods available.  

Take a deep breath. After school, I have time to pay off the loan.

 The standard student loan repayment term is 10 years, but subsidies are available for eligible borrowers who need more time to pay off their loans (up to 25 years).  

Federal student loan interest rates vary depending on the year the loan is taken. 

The directly subsidized or unsubsidized loan interest rate for students 2022-2023 at 4.99%; 

The direct unsubsidized loan interest rate for college graduates and professionals at 6.54%; 

Direct loan PLUS for college graduates has an interest rate of 6.54%. Professionals, students, and parents are 7.54%. 

Federal student loan interest rates are fixed and set annually by Congress.  

For personal loans, interest rates and other terms are set by the lender and depend on a number of factors. 

Government student loans typically offer lower interest rates and more flexible repayment options compared to private student loans.

The best Maryland student loan forgiveness programs are listed below.

Check Also: Can a Parent PLUS Loan Be Transferred to the Student?

1. Maryland Student Loan Debt Relief Tax Credit

The Maryland Student Loan Debt Relief Tax Credit is available to eligible Maryland taxpayers with at least $20,000 in student loan debt and at least $5,000 outstanding at the time of application.  

 However, tax credits prioritize recipients and award levels based on specific circumstances. 

For example, the responsible committee considers whether loans have been received in the previous year and considers the relationship between the debt burden and the borrower’s income.   

However, he must provide proof of student loan payments within two years of receiving the tax credit. If you do not provide proof, you may have to repay this amount in the next tax year.   Value:  Up to $5,000. 

2. Maryland State Loan Repayment Program for Healthcare Professionals

The SLRP program in Maryland finds and keeps healthcare workers to help at-risk populations. 

The Maryland Loan Assistance Repayment Program is one of the various state and federal funding sources used by the program (MLARP). As a result, each financing source has different needs. 

For SLRP federal grants, doctors and physician assistants (PAs) are qualified. You must work as a primary care physician full-time at a public or nonprofit hospital to be eligible. 

But it must be situated in an area with a medically disadvantaged population or a recognized Health Professional Shortage Area (HPSA) (MUA).

Only doctors, PAs, and medical residents in their last year of residency may use state funds through the MLARP. In an HPSA, MUA, or a rural county, recipients may work at a nonprofit or for-profit medical facility. 

Amount: For a two-year service obligation, up to $50,000 per year is available.

Read Also: The Pros and Cons of Student Loans: Are They Worth It?

3. Janet L. Hoffman Loan Assistance Repayment Program

Residents of Maryland who serve low-income or underserved populations in the public or nonprofit sectors are eligible for the Janet L. Hoffman Loan Assistance Repayment Program. 

Lawyers, nurses, licensed clinical counselors, physical and occupational therapists, social workers, speech pathologists, and teachers are among the professions that qualify. 

You must have received your degree from a Maryland-based university to be eligible. Your annual gross income must also be less than $130,000 if you’re married and $60,000 if you’re single. 

Amount: Depending on the total debt listed on your application, up to $30,000 will be dispersed over three years.

4. Maryland Dent-Care Loan Assistance Repayment Program

Dentists in Maryland who treat at least 30% of Maryland Medical Help Program beneficiaries are eligible for student loan assistance through the MDC-LARP program. 

However, only residents of Maryland who work full-time as dentists in the state are eligible for this program. 

Amount: For a maximum of three years of employment, up to $23,740 annually.

You might also want to see this: Student Loan Permanently Assigned to Government | Here’s What to Know

5. Maryland SmartBuy Home Buyer Assistance & Forgiveness Program

The Maryland SmartBuy 3.0 program is a distinctive, cutting-edge strategy created to give student loan borrowers a route to homeownership. 

You need to buy a property in Maryland and owe at least $1,000 in student loans in order to qualify for this program. 

Then, the state will contribute 15% of the purchase price to the buyer’s outstanding student loan balance. 

The remaining balance on any student loans, which is limited to 15% of the purchase price, must be settled in full during the closing process. 

Amount: A minimum of $1,000 and a maximum of 15% of the cost of the home ($30,000).

6. John R. Justice Grant Student Loan Repayment Program

State and federal public defenders and prosecutors in Maryland are given aid with repayment through the John R. Justice Grant Program. 

This three-year service commitment is required for this federally financed program, which is given out depending on the recipient’s capacity to pay back their school loans. 

A ratio of student loan debt to adjusted gross income and a cost-of-living adjustment is used to calculate repayment capacity. 

However, financing is constrained since each appellate court district is given a certain amount of money for public defenders and prosecutors. 

Quantity: Varies.

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7. Maryland Loan Assistance Repayment Program for Foster Care Recipients

Former foster children who have graduated from a Maryland institution are eligible for the MLARP for Foster Care Recipients. 

Additionally, you have to hold a job with a state, county, or local government at least part-time. 

Being a resident of Maryland and having been assigned to an outside placement by the state’s social services division are prerequisites for eligibility. 

10% of the total amount owed on all student loans or $5,000, whichever is less.

Federal Loan Forgiveness Programs

Federal loan forgiveness programs may also be available to Maryland borrowers. These well-liked programs consist of:

1. Public Service Loan Forgiveness program (PSLF)

After making 120 required payments, borrowers who are employed by the government or a nonprofit organization may apply for tax-free debt forgiveness.

2. Income-Driven Repayment (IDR) Plan Forgiveness.

No matter their work status, borrowers may qualify for loan forgiveness after 20 to 25 years of qualified payments. However, they can also be hit with a tax bomb on the forgiven amount. 

To be clear, only borrowers with federal student loans—not those with private student loans—are eligible for PSLF and IDR forgiveness.

Check Also: How to Beat National Collegiate Student Loan Trust in Court

Other options to Reduce your Student Loan Debt

If you don’t qualify for one of Maryland’s student loan forgiveness programs or federal programs, refinancing may be a good option to reduce your debt burden.  

Student loan refinancing lowers interest rates, lowers monthly payments, and improves credit terms with private lenders. 

 But if you’re on federal student loans, refinancing may not be worth it. 

This is because you will no longer be able to take advantage of certain federal benefits and protections, such as flexible repayment schedules and waiver programs.   

Check all available state and federal waiver programs before proceeding with a refinance. 

Most importantly, these programs are basically free money and can help you reduce your student loan balance.  

Our team of student loan experts will review all repayment options and help you plan the most efficient path to debt relief. Book your consultation today.

Read More: How to Apply for a Limited Waiver for Student Loan Forgiveness


Does Maryland impose taxes on forgiven student loans? 

Maryland is a conformance state, which means that except for areas where the General Assembly has passed decoupling legislation, it generally complies with federal income tax standards. Therefore, Maryland will not count the reduction of student loan debt as taxable income. 

How does debt reduction in Maryland operate? 

An organization that offers credit counseling helps you sign up for the program. They assist you in determining an affordable monthly payment, and they then negotiate with your creditors to lower or eliminate interest. Marylanders who meet the requirements can pay off their debt in 36–60 installments.


It is true that making timely loan payments is not always simple. 10% to 20% of student loans often have defaulted when it comes to repayment.

(Of course, during the pandemic-related federal student loan payment suspension that started in March 2020, this was not the case.) 

To obtain the default rate for your particular educational institution, visit the Federal Student Aid page of the US Department of Education. 

Let’s look at refinancing possibilities to prevent you from joining the ranks of student loan defaulters.


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