Maine Student Loan Relief Program
$25,000
Program at a Glance
- Location: Statewide, Maine
- Status: Available through the Maine individual income-tax return
- Maximum annual credit: $2,500 per qualified taxpayer
- Lifetime maximum: $25,000 per qualified taxpayer
- Who it’s for: Maine taxpayers repaying eligible student loans for qualifying degrees earned after 2007
- Eligible degrees: Associate, bachelor’s and graduate degrees
- School location: Accredited colleges and universities located inside or outside Maine
- Income requirement: Minimum earned income determined annually using Maine’s minimum wage
- How to access: Claim the credit when filing a Maine individual income-tax return
- Last verified: October 2026
View Maine Student Loan Tax Credit Information ↗
About the Program
The Maine Student Loan Repayment Tax Credit provides eligible Maine taxpayers with a refundable credit for qualifying student-loan payments. The credit can equal the amount of eligible payments made during the tax year, up to an annual maximum of $2,500 and a lifetime maximum of $25,000 per taxpayer.
The current credit replaced Maine’s former Educational Opportunity Tax Credit beginning with the 2022 tax year. It is part of the state’s Job Creation Through Educational Opportunity program.
What Applicants Should Know
This is a refundable state income-tax credit, not an upfront relocation grant or direct student-loan payment. Eligible taxpayers claim the benefit when filing their Maine income-tax return.
The amount received depends on the qualifying student-loan payments the taxpayer made directly to the lender during the portion of the year in which the taxpayer was a Maine resident. Someone who paid less than $2,500 in eligible payments would generally be limited to the amount actually paid.
The taxpayer must make payments directly to the lender. Payments made by another person or paid directly by an employer do not qualify.
Who May Qualify
A qualified taxpayer generally must:
- Be a Maine resident or qualifying part-year resident
- File a Maine individual income-tax return
- Have earned an associate, bachelor’s or graduate degree after 2007
- Have earned the degree from an accredited college or university
- Meet the applicable minimum earned-income requirement
- Make eligible student-loan payments directly to the lender
- Have student loans that were part of the taxpayer’s financial-aid package
- Have the qualifying loans issued in the taxpayer’s name
Both public and private student loans may qualify. Certain loans from relatives or qualified employer plans do not qualify.
Credit Amount
The refundable credit is based on eligible student-loan payments made during the tax year.
- Maximum annual credit: $2,500
- Maximum lifetime credit: $25,000 per taxpayer
- Minimum benefit: Based on the amount of eligible payments actually made
- Refundable: The credit may produce a refund even when it exceeds the taxpayer’s Maine income-tax liability
If both spouses filing a joint return independently qualify, each spouse may calculate a separate credit using a separate worksheet.
How to Claim the Credit
The credit is claimed by completing Maine’s Student Loan Repayment Tax Credit Worksheet and submitting it with Form 1040ME.
A first-time claimant generally must provide:
- A complete college transcript showing the degree and graduation date
- Documentation showing that the student loans qualify
- Documentation showing the payments made directly to the lender during the tax year
Maine Revenue Services may request additional supporting documentation.
View the Maine Student Loan Repayment Tax Credit
This information is provided for general informational purposes and is not individual tax advice. Eligibility and credit calculations depend on the taxpayer’s circumstances and the rules applying to the relevant tax year.
Official information:
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