The Maryland Senate recently passed Senate Bill 676, the College Affordability Act of 2016. This Legislation will help to provide much-needed student loan relief to Marylanders by taking a multi-pronged approach to providing student loan relief to Marylanders. Here is a quick summary of what the bill does:
- Establishes a matching State contribution to eligible college savings accounts – Starting with accounts established after Dec. 31, 2016 a State contribution of $250 may be made per beneficiary. The State contribution is always $250 per beneficiary. Based on account holder’s income, the account holder has to also contribute between $25-$250 per beneficiary. To be eligible for a State matching contribution an account holder must:
- apply each year between Sept 15 and Sept 20,
- be a Maryland resident,
- have Maryland taxable income no greater than $112,500 for individual or $225,000 for joint filers.
- Creates a refundable tax credit up to $5,000 for undergraduate student loan debt – Creates a tax credit for “qualified taxpayers” defined as those who incurred at least $20,000 in undergraduate student loans and have at least $5,000 in remaining debt. This is limited by budget constraints, so neutral measures including debt-to-income ratios will be used to determine who receives this tax credit.
Join us in thanking Senator Mathias for his work on this important legislation and for passing student loan relief in Maryland by adding your name below!
Thank you, Senator Mathias!
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