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Thread: Student Loan Interest 100% Tax-Deductible for All Marylanders Making Less Than $200,000

  1. #1
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    Student Loan Interest 100% Tax-Deductible for All Marylanders Making Less Than $200,000

    Governor Hogan Announces 2017 Student Debt and Tuition Relief Initiative, Investments in Higher Education

    Student Loan Interest 100% Tax-Deductible for All Marylanders Making Less Than $200,000 - Tuition Growth Capped at State Colleges & Universities

    Governor Larry Hogan announced the administration's 2017 Student Debt and Tuition Relief Initiative, as well as targeted investments in higher education. Governor Hogan made the announcement at the University of Maryland, College Park, where he was joined by Maryland Secretary of Higher Education James Fielder and Maryland Secretary of Housing and Community Development Ken Holt; as well as University of System Maryland Chancellor Dr. Robert Caret; University of Maryland, College Park President Dr. Wallace Loh and the University's Board of Regents; University of Maryland University College President Dr. Javier Miyares ; St. Mary's College President Dr. Tuajuanda Jordan; Morgan State University President Dr. David Wilson; and Maryland Association of Community Colleges Executive Director Dr. Bernie Sadusky.

    The governor's proposal includes legislation to make student debt interest payments tax-deductible for all Marylanders earning less than $200,000 per year, funding to cap tuition growth at Maryland colleges and universities at a maximum of two percent, and targeted investments in priority projects at Maryland's higher education institutions.

    "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," said Governor Hogan. "We believe that our new Student Debt and Tuition Relief Initiatives will provide much-needed relief from student loan debt, and will help us continue to make college in Maryland more affordable."

    In 2015, the Hogan administration immediately began working to ease the burden of student debt, which in many cases has become a burden to homeownership, by creating a mortgage initiative to help Marylanders with $25,000 or more in student loan debt, resulting in $90 million in mortgages closed. 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.

    "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," said Chancellor Caret.

    Governor Hogan's 2017 Student Debt and Tuition Relief Initiative and higher education investments include:

    Student Debt Relief Act of 2017: Under this proposal, the vast majority of Marylanders will be able to deduct 100 percent of the interest paid on their student loan debt from their income tax return . Beginning in 2018, Marylanders making less than $200,000 and couples making less than a combined $250,000 per year will not pay any Maryland income tax on their student loan interest payments. This proposal is expected to save Marylanders, many of whom are currently struggling to pay off college debt, $20 million each year.

    Tuition Relief Initiative: Governor Hogan also announced his plan to make Maryland's public colleges and universities more affordable by providing major tuition relief for the second year in a row. Maryland universities requested to raise tuition by as much as five percent in 2017, but Governor Hogan announced that the state would partner with these institutions to invest an additional $17.5 million dollars to allow 14 Maryland colleges and universities to cap tuition growth at two percent including all 12 University System of Maryland institutions, as well as Morgan State University and St. Mary's College.

    Investing in Higher Education: The governor announced an investment of more than $380 million in the 2017 Capital Budget for higher education projects across the state, including:

    -- $89 million for construction of the new Biomedical Sciences Education facility at the University System of Maryland, Universities at Shady Grove Education Center;

    -- $40 million to continue construction of the Interdisciplinary Life Sciences Building at the University of Maryland, Baltimore County;

    -- $26 million to start construction for a new science facility at Towson University;

    -- $9 million to begin construction of Morgan State University's Student Services building;

    -- $25 million for continued construction of the James Clark Bioengineering Building at the University of Maryland, College Park.

    Additionally, Maryland's community colleges will receive $56 million to fully fund all of their requested projects for the year, with an additional $8 million for projects at Goucher College, McDaniel College, and St. John's College.

  2. #2
    Board Mommy vraiblonde's Avatar
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    About time.

    While he's at it, he can repeal the stupid law that says out of state employees of Maryland corporations get socked hard with taxes.
    "Too much agreement kills a chat."
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  3. #3
    Quote Originally Posted by vraiblonde View Post
    About time.

    While he's at it, he can repeal the stupid law that says out of state employees of Maryland corporations get socked hard with taxes.
    For those who don't understand how relatively useless this is...

    1. MD tax deductible interest...whooppie..

    For tax year 2016, Maryland's personal tax rates begin at 2% on the first $1000 of taxable income and increase up to a maximum of 5.75% on incomes exceeding $250,000
    http://taxes.marylandtaxes.com/Indiv.../default.shtml

    the full tax table can be found on page 19 of the 2016 return booklet: http://forms.marylandtaxes.com/curre...nt_booklet.pdf

    So you are at that $200,000 income level with a state tax of 5.5% and paid $5000 in student loan interest during the year...what's your "refund"? $275. Wow!!! How does that help "struggling Marylanders" pay off their student loans?

    As for the "tuition cap"...ask any parent with a kid in college...that doesn't include fees, room and board, books or any other cost associated with attendance. The U can't get its annual bump from tuition...just raise dining hall prices or the cost of on campus housing or parking fees...or all of the above.

    As for the continual parade of new campus buildings...maybe tuition fees etc could be kept better in line without $380M in new spending?

  4. #4
    Quote Originally Posted by tommyjo View Post
    For those who don't understand how relatively useless this is...

    1. MD tax deductible interest...whooppie..

    http://taxes.marylandtaxes.com/Indiv.../default.shtml

    the full tax table can be found on page 19 of the 2016 return booklet: http://forms.marylandtaxes.com/curre...nt_booklet.pdf

    So you are at that $200,000 income level with a state tax of 5.5% and paid $5000 in student loan interest during the year...what's your "refund"? $275. Wow!!! How does that help "struggling Marylanders" pay off their student loans?

    As for the "tuition cap"...ask any parent with a kid in college...that doesn't include fees, room and board, books or any other cost associated with attendance. The U can't get its annual bump from tuition...just raise dining hall prices or the cost of on campus housing or parking fees...or all of the above.

    As for the continual parade of new campus buildings...maybe tuition fees etc could be kept better in line without $380M in new spending?
    Dang. Good post. I'm reminded again why I fell in love with you in the first place.
    You can't be a real country unless you have a beer and an airline. It helps if you have some kind of a football team, or some nuclear weapons, but at the very least you need a beer. -Frank Zappa

  5. #5
    I Need a Life b23hqb's Avatar
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    All of that "savings" from the MD income stream has to be made up somewhere, right? Who's gonna pay for those lost $$$$$?
    "In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress." John Adams

  6. #6
    INGSOC GURPS's Avatar
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    Quote Originally Posted by tommyjo View Post

    ...what's your "refund"? $275. Wow!!! How does that help "struggling Marylanders" pay off their student loans?


    I'll take that $ 275, since you obviously do not need it
    Weíre tempted to suggest a conspiracy here ó but itís just liberals agreeing yet again that conservatives have hidden, evil motives, because modern liberals simply canít conceive of any other reason to disagree with the liberal consensus.

  7. #7
    Board Mommy vraiblonde's Avatar
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    Quote Originally Posted by GURPS View Post
    I'll take that $ 275, since you obviously do not need it
    For real. It may be small, but it's still something.
    "Too much agreement kills a chat."
    ~Eldridge Cleaver

  8. #8
    Doris Day meets Lady Gaga Bann's Avatar
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    Quote Originally Posted by tommyjo View Post

    For those who don't understand how relatively useless this is...

    1. MD tax deductible interest...whooppie..

    http://taxes.marylandtaxes.com/Indiv.../default.shtml

    the full tax table can be found on page 19 of the 2016 return booklet: http://forms.marylandtaxes.com/curre...nt_booklet.pdf

    So you are at that $200,000 income level with a state tax of 5.5% and paid $5000 in student loan interest during the year...what's your "refund"? $275. Wow!!! How does that help "struggling Marylanders" pay off their student loans?

    As for the "tuition cap"...ask any parent with a kid in college...that doesn't include fees, room and board, books or any other cost associated with attendance. The U can't get its annual bump from tuition...just raise dining hall prices or the cost of on campus housing or parking fees...or all of the above.

    As for the continual parade of new campus buildings...maybe tuition fees etc could be kept better in line without $380M in new spending?
    How about parents don't lead their kids down the college tuition loan path in the first place? How about finding less expensive ways to go to college? If you and/OR your parents cannot afford to pay a loan BACK, then don't take the loan out. Find other ways.

    That having been said - the STATE giving a tax break on the student loan interest is a good thing. Why look a gift horse in the mouth? If you take out a loan - pay it back. Stop whining

  9. #9
    Quote Originally Posted by vraiblonde View Post
    For real. It may be small, but it's still something.
    TJ has so much friggin money, she doesn't realize how much an extra $275 would mean to most people.
    "Pain heals. Chicks dig scars. Glory... lasts forever." - Shane Falco

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