HEARING ALERT: Student Debt Relief Act Of 2017

Important Legislation Offering Vast Majority Marylanders Student Loan Debt Relief
Note: Senate Budget And Taxation Committee to Hold Hearing on SB 320 on February 22, 2017, 1:00 PM

“We are asking for your help to tackle the growing problem of college debt by passing the Student Debt Relief Act, which will allow Marylanders to deduct one hundred percent of the interest paid on their student loans from their state income tax return.” - Governor Larry Hogan, February 1, 2017

Governor Hogan Has Recognized The Impact Student Loan Debt Has On Marylanders

Governor Hogan: “Having a college education is more important now than ever before, but the harsh reality many face today is that earning a college degree often goes hand-in-hand with accumulating crippling college debt.” (Press Release, “Governor Hogan Announces 2017 Student Debt And Tuition Relief Initiative, Investments In Higher Education,” Office Of the Governor, 1/10/17)
In 2016 U.S. Student Loan Debt Hit A Record $1.31 Trillion. “Total U.S. student debt hit a record $1.31 trillion last year, the 18th consecutive year Americans' education debt rose, according to the Federal Reserve Bank of New York.” (Shahien Nasiripour,” Bloomberg, 2/17/17)
Nearly 60% Of College Students In Maryland Graduate College With Student Debt Averaging More Than $27,000. (“Project On Student Debt,” The Institute For College Access & Success, Accessed: 2/21/17)

The Hogan Administration Has Put Forth Innovative Measures To Offer Individuals Relief From Student Debt

In 2016, Governor Hogan Introduced Legislation To Create The Maryland SmartBuy Program.
Governor Hogan Signed The Legislation Into Law; Legislation Received Near Unanimous Support In Both Chambers Of The Maryland General Assembly. (“Senate Bill 381,” Maryland General Assembly, 4/26/16)

The Washington Post Headline: “This Program Could Revolutionize Homeownership For Student Loan Borrowers” (Danielle Douglas-Gabriel, “This Program Could Revolutionize Homeownership For Student Loan Borrowers,”The Washington Post, 11/24/16)
SmartBuy Is The First Program Of Its Kind In The Nation That Makes Move-In Ready Homes Available To Eligible Individuals, While Eliminating The Burden Of Student Loan Debt. “In 2016, the administration launched the Maryland SmartBuy initiative, a first-in-the-nation program that allows eligible buyers to purchase move-in-ready homes while eliminating their student loan debt burden. The first SmartBuy purchase was made on September 30, 2016.” (Press Release, “Governor Hogan Announces 2017 Student Debt And Tuition Relief Initiative, Investments In Higher Education,” Office Of the Governor, 1/10/17)

In 2016, Governor Hogan Signed Legislation To Study The Expansion Or Creation Of A Bonding Authority For The Refinancing Of Student Loans. “The Maryland Higher Education Commission and the Maryland Health and Higher Educational Facilities Authority, in consultation with the Department of Legislative Services and any other appropriate agencies, shall study the expansion or creation of an appropriate bonding authority for the refinancing of student loans in Maryland… The study shall examine: whether there are any entities in the State that have bonding authority and currently have the capability and capacity to offer a student loan refinancing program… The study shall make findings and recommendations on: the entities in the State that are best suited to offer a student loan refinancing program…” (“House Bill 1015,” Maryland General Assembly, 4/26/16)

Maryland Educators Have Supported Governor Hogan’s Commitment; Offered Praise For His 2017 Higher Education Initiatives Aimed At Addressing Student Debt

University System Of Maryland Chancellor Robert Caret Said He Hoped The Legislature Would Pass The Governor’s Proposed Higher Education Initiatives. “System Chancellor Robert Caret, who stood at the conference alongside Board of Regents members and university President Wallace Loh, said he hoped the legislature would pass Hogan's initiatives. ‘Obviously, the governor is very, very committed to keeping the cost down for students, and hence, hopefully decreasing debt as part of that,’ he said.” (Evan Berkowitz, “Gov. Larry Hogan Wants To Cap Tuition Increases At University System Of Maryland Schools,” The Diamondback, 1/10/17)
Dr. Robert Caret: “I thank Governor Hogan for his administration’s continued investment in higher education, and I applaud his efforts to ensure that even more Marylanders have access to the world-class education our universities have to offer.” (Press Release, “Governor Hogan Announces 2017 Student Debt And Tuition Relief Initiative, Investments In Higher Education,” Office Of The Governor, 1/10/17)

University Of Maryland College Park Chancellor Wallace Loh: “This Is Real Commitment To Higher Education.” Loh affirmed his support of this commitment. ‘[Hogan's] going to reduce their tuition increases [and] therefore have a favorable impact on debt, and then [there's] all his commitments in capital projects,’ Loh said when asked how the governor's proposals would affect students. ‘This is real commitment to higher education.’” (Evan Berkowitz, “Gov. Larry Hogan Wants To Cap Tuition Increases At University System Of Maryland Schools,” The Diamondback, 1/10/17)

Student Debt Relief Act Of 2017

Governor Hogan’s Proposal Will Provide Relief To The Majority Of Marylanders With Student Loan Debt; Marylanders Making Less than $200,000 A Year, And Couples Making Less than A Combined $250,000 A Year Will Be Able To Deduct 100% Of The Interest Paid On Their Student Loan From Their Maryland State Income Tax Return.”’Qualified student loan’ means a loan incurred to attend and receive a baccalaureate or graduate level degree from an institution of higher education. ‘Qualified taxpayer means a taxpayer who: makes payments on a qualified student loan during the taxable year; and for an individual who does not file a joint income tax return, has federal adjusted gross income for the taxable year that does not exceed $200,000; or for a married couple filing a joint income tax return, has federal adjusted gross income for the taxable year that does not exceed $250,000. The subtraction under subsection (A) of this section includes the amount of interest paid on a qualified student loan by the qualified taxpayer during the taxable year.” (“Senate Bill 320,” Maryland General Assembly, 1/20/17)