Maximize Your Student Loan Savings

Hello, this is Governor Janet Mills and thank you for listening.

You know, choosing to go to college shouldn't trap somebody in decades of debt, with interest rates that snowball until what you owe becomes impossible to pay off. And yet, that is the reality for many people, especially young people, who make good-faith payments on their student loan debt and still struggle to get by.

Three years ago I worked with the Legislature to make Maine's student loan relief program a lot less complicated and more generous -- in fact, it's now one of the most generous debt relief programs in the country.

Unlike our old tax credit that had a lot of complicated criteria, our new student loan repayment tax credit is simple and straightforward. Basically, if you graduated any time after 2007 with a degree in any subject, from any college, community college, or university anywhere, and you now live and work and you pay income taxes in Maine, then you're eligible to save up to $2,500 a year on your student loans.

If you're paying down your student loan, you can claim this credit on your state income taxes and get up to $2,500 to offset some or all of your state income tax. For a couple who are both paying down their student loans it's $2,500 for each of them a year.

For example, a taxpayer who owes the State of Maine $500, but who made $2,500 in eligible student loan payments during the year, would receive a refund of $2,000.

Since we overhauled the student loan relief program we've provided more than $140 million in tax relief to Maine people who can now put that money towards buying a house, raising a family, starting a small business, or just keeping up with more expensive everyday needs, like groceries.

The strength of our economy depends on keeping talented people working in our state and paying taxes here. There's a simple, generous, and clear tax credit to help you pay down your student debt and start or continue a career here in Maine. As the year draws to a close, and as you start to think about filing your taxes for 2025, I strongly, strongly encourage you to consider claiming Maine's student loan repayment tax credit to maximize your savings.

For more information about this tax credit for taxpayers in Maine, please visit maine.gov/revenue. That's maine.gov/revenue.

This is Governor Janet Mills and thank you for listening.