Maryland Student Loan Forgiveness Programs 2026: Complete Guide

What Are Maryland Student Loan Forgiveness Programs?

Maryland's student loan forgiveness programs are state-funded initiatives that provide loan repayment assistance to residents working in specific high-need professions or public service roles. These programs are separate from federal forgiveness options and have their own eligibility criteria, funding limits, and application cycles. Most Maryland programs require full-time employment in the state for a minimum period, typically three to four years.

The major state programs include the Janet L. Hoffman Loan Assistance Repayment Program (LARP) for federal and state employees, the Maryland Health Practitioner Loan Repayment Program for healthcare professionals, the Teaching Fellows for Maryland Scholarship and Loan Repayment Program for educators, and the Maryland Loan Assistance Repayment Program for Lawyers (LAP-Law).

Below is a comparison of the key Maryland state programs as of 2026.

Award amounts are subject to annual state funding and may change. Verify current limits on each program's official page. *The Teaching Fellows program is also a scholarship that covers tuition in exchange for teaching service.

Application processes are not centralized. Each program has its own cycle, required forms, and documentation. The following steps apply generally to the major Maryland programs as of 2026.

1. Identify eligible employment: Confirm your employer qualifies. LARP requires a position as a state or federal employee or work for a 501(c)(3) nonprofit. Health practitioner programs require work in a designated Health Professional Shortage Area (HPSA) or at a qualifying Maryland facility.
2. Check the current application window: Maryland programs typically open applications in the spring (March–May) or fall (September–November). LARP and the health practitioner program post exact dates at MHEC's website.
3. Gather documentation: You will need your signed employment verification, proof of student loan debt (billing statements or NSLDS report), and a service agreement from your employer. Some programs also require a formal commitment letter signed by your supervisor.
4. Complete the online application: Use the Maryland Higher Education Commission's (MHEC) online portal or the specific program's submission portal. Pay close attention to required essays or attestations about your loan debt and service plans.
5. Submit before the deadline and follow up: Applications are reviewed in batches. Award decisions are usually sent within 60–90 days. If awarded, you will sign a promissory note or contract and must submit periodic service verifications.

For the Teaching Fellows program, applicants must also have or be pursuing a Maryland teaching certificate in shortage areas. LAP-Law applicants must be barred in Maryland and employed at least half-time in qualifying public interest law work.

A key practical point: Maryland prioritizes applicants who have already completed some or all of their service year before applying. Many programs pay retroactively after you have completed a year of eligible work. Applying at the start of your service year is common, but funding is not guaranteed.

Maryland's loan forgiveness programs for state employees and nonprofit workers overlap with the federal Public Service Loan Forgiveness (PSLF) program. Both can be pursued simultaneously, but the strategies differ.

Federal PSLF forgives remaining federal Direct Loan balances after 120 qualifying monthly payments (roughly 10 years) while working full-time for a qualifying employer. Many Maryland state employees already work for a PSLF-qualifying employer (state government, 501(c)(3) nonprofit). State programs like LARP provide up to $10,000 per year in grants that pay down your federal loan balance directly, which reduces the amount ultimately forgiven by PSLF.

There is no rule against receiving both Maryland LARP awards and PSLF credit simultaneously. However, any LARP payment reduces the outstanding loan principal, which may reduce the final PSLF forgiveness amount. Borrowers should compare the expected value of PSLF forgiveness (potentially 100% of remaining balance) against the up-front cash from LARP.

A borrower earning $55,000 per year as a state employee with $45,000 in federal Direct Loans might receive $10,000 per year from LARP for three years. That $30,000 in direct payments could leave $15,000 in remaining debt, which could be forgiven via PSLF after approximately 2 additional years of payments. Alternatively, foregoing LARP and relying solely on PSLF would likely require the full 10 years before any forgiveness. The optimal approach depends on the borrower's total debt amount, income-driven repayment plan, and how long they expect to remain in qualifying employment.

See also: Can I Get Student Loan Forgiveness If I Work for a Nonprofit for more on PSLF eligibility for nonprofit and government employees.

Common Limitations

Maryland's forgiveness programs have notable limitations. First, funding is limited and competitive. The Janet L. Hoffman LARP program received roughly 1,200 applications for only about 200 awards in a typical funding cycle. Second, most programs require full-time employment (at least 35 hours per week) and a minimum service commitment of three to four years. Leaving employment early can trigger repayment of all amounts received. Third, awarded amounts are considered taxable income at the federal level (and may be taxed by Maryland as well), which can reduce the net benefit substantially for borrowers in higher tax brackets.

Caveats Before You Decide

If you currently work for a Maryland public school system, the Teaching Fellows program may be a better option than LARP because it combines a scholarship for tuition (if still enrolled) with loan repayment for existing debt. However, the Teaching Fellows program also carries a GPA requirement (minimum 3.0) and mandates teaching in specific shortage regions, which may limit flexibility for career changes.

For health practitioners, annual awards can reach $100,000, but the program imposes a four-year commitment in a designated HPSA. Practitioners who fail to complete the service term must repay the full amount received plus interest. Those considering the program should verify that their specific practice location qualifies as a shortage area before applying.

There are also two federal programs worth considering alongside Maryland's offerings: Teacher Loan Forgiveness (for teachers in low-income schools) and Income-Driven Repayment (IDR) forgiveness after 20 or 25 years. Borrowers may find that consolidation into an IDR plan plus eventual forgiveness offers more predictable outcomes than competitive state grants.

Expert Tips

• LEARN MORE LARP and PSLF simultaneously, time your LARP application to coincide with your first year of PSLF-qualifying employment.
• Use MHEC's online portal to track your application status; many programs do not send confirmation emails before the funding deadline.
• For health practitioners, request a preliminary eligibility determination from the Maryland Department of Health to confirm your practice location and loan type qualify before applying.
• Keep records of all service agreements, payment receipts, and employer certifications for at least 10 years in case of audit.
• Consider consulting a student loan advisor who specializes in Maryland's programs, as rules change periodically with state budget cycles.

Mistakes to Avoid

• Assuming state awards automatically count toward PSLF, they reduce your loan balance but do not count as qualifying payments.
• Missing the application window entirely, many Maryland programs have strict annual deadlines with no exceptions.
• Failing to report state loan repayment assistance on your federal tax return, the full amount of the award is taxable income in the year received.
• Neglecting to check whether your employer qualifies, some state contractors and quasi-governmental agencies do not qualify for PSLF or LARP.

Pros and Cons

Pros:
Up to $100,000 per year for health practitioners; $10,000 annually for LARP recipients; works alongside PSLF; targeted to high-need professions and underserved areas; no cap on number of private loans covered (LARP pays any eligible student loans).

Cons:
Highly competitive; taxable income; multi-year service commitment with repayment penalty; state funding can be cut mid-cycle; limited to full-time employment.

Bottom Line

Maryland's loan forgiveness programs offer meaningful benefits for borrowers in qualifying professions, especially health practitioners and public servants. The programs pair well with federal PSLF for those who qualify. However, competition for awards is intense, and the tax burden and service requirements are real. Most borrowers should LEARN MORE LARP and PSLF simultaneously and compare the net benefit after taxes.