Maryland Programs to Pay Off Student Loans

Maryland offers more than just federal programs like PSLF to help with student loan debt. The state has its own repayment and forgiveness options that can ease your balance.

Depending on your situation, you could qualify through your job, your tax return, or even by buying a home in Maryland. These programs can put thousands of dollars toward your loans if you meet the requirements.

Maryland SmartBuy 3.0

If you’re looking to buy a home in Maryland and still have student debt, the SmartBuy 3.0 program can help. The state will pay off up to 15% of your home’s purchase price — capped at $20,000 — toward your student loans when you close on a house through the Maryland Mortgage Program.

The catch: one borrower’s entire loan balance must be paid off at closing with SmartBuy funds. The money comes as a 0% interest second loan, and Maryland forgives 20% of it each year you stay in the home. After five years, the debt is gone. Sell or move sooner, and you’ll need to repay the remaining balance.

Maryland Student Loan Debt Relief Tax Credit

Maryland also offers a Student Loan Debt Relief Tax Credit. If you’ve borrowed at least $20,000 and still owe $5,000 or more, you can apply for a one-time credit worth up to $5,000 on your state income taxes.

In recent years, the average award has been closer to $1,800. To keep the credit, you must put an equal amount toward your student loan within three years and show proof to the state. Otherwise, you’ll have to pay it back.

Maryland runs several loan repayment programs for medical professionals who agree to work in shortage areas. The exact benefit depends on your role and service commitment.

Physicians and Physician Assistants

If you’re a doctor or physician assistant working full time in a designated shortage area, you could get up to $100,00 for two years of full-time service through the Maryland Loan Repayment Program for Physicians and PAs. Work part time, and the benefit is up to $50,000.

Nurses and Nursing Support Staff

Nurses can also qualify for relief through the Maryland Loan Repayment Program for Nurses. Advanced practice nurses (like nurse practitioners or nurse midwives) may get up to $100,000 over two years. Registered nurses and licensed practical nurses can earn up to $50,000. Nursing assistants and other support staff may qualify for up to $5,000.

Dentists in Maryland may also qualify if they treat a high number of Medicaid patients. The Maryland Dent-Care Loan Assistance Repayment Program offers up to $23,740 per year, for a maximum of about $71,000 over three years.

Maryland offers loan repayment help to teachers, lawyers, and other public service employees. Benefits vary depending on your role and where you work.

Janet L. Hoffman Loan Assistance Repayment Program

Teachers, lawyers, social workers, nurses, and other public service professionals may qualify for up to $30,000 over three years through the Janet L. Hoffman Loan Assistance Repayment Program. You’ll need to work full time in an eligible Maryland community and keep your loans in good standing.

John R. Justice Grant Program

Public defenders and prosecutors can also receive help through the John R. Justice Grant Program. Awards are smaller — typically a few thousand dollars a year — but require a three-year commitment to stay in public service law.

Maryland also offers smaller programs that serve specific groups of public employees.

• The MCPS SEIU Student Debt Relief Fund helps Montgomery County Public Schools support staff (not teachers or administrators) pay down their student loans, with annual payments capped at $5,250.

• The SmartWork Student Loan Repayment Plan provides up to $20,000 over 10 years to state employees in shortage jobs — like nurses, correctional officers, and IT staff. You’ll receive annual payments as long as you stay in your role.

Maryland also has programs designed for specific groups who often carry heavy student debt.

Police Officers and Probation Agents

Full-time police officers and probation agents with degrees from Maryland public colleges can receive annual payments toward their loans through the Maryland Loan Assistance Repayment Program for Police Officers and Probation Agents. The award ranges from 10% to 40% of your balance each year, but it can’t exceed 40% of your salary. You can renew for up to three years.

Foster Care Alumni

Former foster care youth who earned a college degree in Maryland and now work full time for the state or local government may also qualify for relief. The Maryland Loan Assistance Repayment Program for Foster Care Recipients offers up to $5,000 a year, or 10% of your original loan balance, for a maximum of three years.

Maryland’s programs can take a real bite out of your student loan balance, but each comes with strings attached. Most require you to stay in a job or home for several years. If you leave early, you may have to pay the money back.

Before applying, think about how the program fits your overall financial picture. For example, SmartBuy could wipe out your loans when you buy a house — but only if you’re ready for the costs of homeownership. Likewise, a repayment program for teachers or nurses could add thousands toward your debt, but you’ll need to commit to working in certain locations or roles.

Related: State Student Loan Forgiveness Programs