Maryland Student Loan Forgiveness Programs

Maryland offers a wide set of student loan repayment assistance programs, from a tax credit any resident with enough debt can apply for to repayment help for teachers, nurses, doctors, dentists, police officers, and legal aid lawyers. The Student Loan Debt Relief Tax Credit has the widest reach, and the Hoffman program matters most for public sector and nonprofit workers. Health care workers should watch the Maryland Department of Health's March 1 to April 15 window, and borrowers who don't fit any program should start with federal forgiveness programs.

Student Loan Debt Relief Tax Credit

The Maryland Higher Education Commission (MHEC) awards this credit to Maryland residents who borrowed at least $20,000 for undergraduate or graduate school and still owe at least $5,000 when they apply (MHEC). Recipients must put the full credit toward their loans and send proof of payment within three years of the end of the tax year, which is December 31, 2029, for a 2026 credit. Borrowers on an income-driven plan can see how the payment interacts with forgiveness in our best student loan repayment plans breakdown.

Janet L. Hoffman Loan Assistance Repayment Program (LARP)

Hoffman LARP pays $1,500 to $10,000 a year based on total debt, with a three-year limit of $4,500 to $30,000, for Marylanders working full time for state or local government or a nonprofit in a listed field (MHEC). Income caps are $75,000 for single filers and $150,000 for married filers, or $100,000 and $185,000 for nurse faculty. MHEC's 2026–2027 conditions of award describe a one-year-only award for this cycle, with eligible recipients able to reapply for up to three award years (MHEC conditions of award). Teachers in the program should also read our list of student loan forgiveness options for teachers.

The Nancy Grasmick awards within Hoffman LARP cover public school teachers in STEM subjects or in schools where at least 75% of students receive free meals, school nurses, and school psychologists, social workers, and counselors (MHEC eligible fields). Lawyers qualify only if they provide legal services to low-income residents, and those same jobs usually count toward nonprofit student loan forgiveness through PSLF.

MLARP For Physicians And Physician Assistants

The Maryland Department of Health (MDH) pays physicians and physician assistants up to $100,000 for full-time work, or $50,000 part time, over a two-year obligation, and final-year medical residents take on a three-year obligation for the same amounts (MDH). MDH says eligibility rules and the number of awards can change each year based on legislation and funding. Doctors comparing this against federal awards should read our breakdown of student loan forgiveness for doctors.

MLARP For Nurses And Nursing Support Staff

Created by SB 696 in 2022 and amended by HB 19 and SB 216 in 2025 (Chapter 416), this state-funded MDH program pays APRNs up to $100,000, RNs and LPNs up to $50,000, and nursing support staff up to $5,000 for full-time work, with half those amounts for part-time work (MDH). Nurses who don't fit have other routes in our roundup of student loan forgiveness for nurses.

Maryland Dent-Care Loan Assistance Repayment Program (MDC-LARP)

MDC-LARP pays full-time dentists $50,000 a year for a three-year commitment and full-time dental hygienists $10,000 a year for a two-year commitment, with part-time awards up to half those amounts (MDH Office of Oral Health). Dentists must treat Maryland Medicaid recipients as at least 30% of their patients each year. Dentists comparing options should also review our graduate school forgiveness breakdown.

MLARP For Police, Probation, And Corrections Officers

MHEC pays a share of an officer's salary toward student loans: 10% for debt under $15,000, 20% for $15,000 to $40,000, 30% for $40,000 to $75,000, and 40% for debt over $75,000, never more than the debt itself (MHEC). Awards renew for up to three years. Officers at state and local agencies also work for PSLF employers, which our PSLF breakdown covers.

MLARP For Foster Care Recipients

Marylanders who spent three or more years in out-of-home foster care can receive the lesser of $5,000 or 10% of their student debt each year if they work at least 20 hours a week for state, county, or local government (MHEC). Awards renew for up to three years, subject to available funds. Our student loan forgiveness for foster parents article covers related federal options.

Workforce Shortage Student Assistance Grant

WSSAG pays $2,000 a year at a Maryland community college or $4,000 a year at a four-year Maryland school to students entering child care, human services, teaching, nursing, physical and occupational therapy, social work, or public service (MHEC). Recipients work in the field one year per year of award if full time, or two years per year of award if part time. Nursing students can compare it with the options in our nursing student loan forgiveness roundup.

Teaching Fellows For Maryland Scholarship

Teaching Fellows covers 100% of tuition, mandatory fees, and room and board at Maryland public colleges for students who commit to teaching in a high-needs school or shortage area, with a smaller award and an institutional match at private nonprofit colleges (MHEC). Recipients teach for two years in a qualifying school, or in any Maryland public school if no high-needs position is available. Pair it with our list of student loan forgiveness options for teachers.

Police Officer And Probation Agent Scholarship

This MHEC scholarship pays 50% of resident undergraduate tuition and mandatory fees at eligible Maryland public senior institutions for current and future police officers and probation agents (MHEC). Recipients work as a police officer in Maryland for at least five years during the eight years after graduation. Officers with existing debt should look at the MLARP program above and our PSLF breakdown.

Cybersecurity Public Service Scholarship

MHEC funds cybersecurity students with at least a 3.0 GPA who have finished a quarter of their program credits and agree to work in cybersecurity for a Maryland school system, public high school, community college, or state or local government, or to teach cybersecurity (MHEC). The award converts to a loan if you don't finish the program or the work requirement. Engineering and computing majors can find other routes in our engineering student loan forgiveness roundup.

Maryland is one of the states that automatically conform with federal tax rules, so it follows federal treatment of canceled student debt (The College Investor). PSLF, Teacher Loan Forgiveness, and death and disability discharges stay tax-free at both levels.

Forgiveness under income-driven plans became federally taxable again on January 1, 2026, when the American Rescue Plan exclusion expired, and conforming states like Maryland may tax it as well (Taxes And Student Loan Forgiveness). Borrowers expecting IBR or RAP forgiveness can estimate the bill with our student loan tax bomb calculator.

NHSC loan repayment awards are tax-free (HRSA). Ask MHEC or MDH whether your Maryland award will be reported as income, and read our explainer on the 1099-C and student loan forgiveness before filing.

Does Maryland Have A Student Loan Forgiveness Program?

Maryland offers student loan repayment assistance programs rather than broad loan forgiveness. It runs 11 programs, including a statewide tax credit, loan repayment for public service and health care workers, and service scholarships for future teachers, police officers, and shortage-field workers. Borrowers outside those programs rely on federal programs like PSLF and income-driven plan forgiveness.

What Changed In The Hoffman LARP Program?

The income cap is now $75,000 for single filers and $150,000 for married filers (MHEC). MHEC's 2026–2027 conditions describe a one-year-only award for this cycle, so confirm renewal terms before counting on three years, and pair it with our PSLF breakdown.

Can Maryland Nurses Get Help Repaying Student Loans?

Nurses have three routes: MDH's nursing MLARP pays up to $100,000 for APRNs and $50,000 for RNs and LPNs, and Hoffman LARP and the WSSAG scholarship both list nursing (MDH). Our nursing forgiveness roundup covers federal Nurse Corps funding on top.

How Much Can Maryland Teachers Get Toward Their Student Loans?

Teachers can receive up to $10,000 a year through Hoffman LARP, including the Nancy Grasmick awards for STEM and high-poverty schools (MHEC). Federal Teacher Loan Forgiveness adds up to $17,500, and public school teachers can pursue PSLF, but the same years can't count toward both federal programs.

Is Student Loan Forgiveness Taxable In Maryland?

Maryland conforms to federal tax rules, so PSLF and Teacher Loan Forgiveness are tax-free while income-driven plan forgiveness granted after 2025 may be taxable (The College Investor). Use our tax bomb calculator to estimate what you'd owe.