Bill > HB19

This bill establishes the Maryland Public Service Loan Forgiveness Program, which aims to attract, recruit, and retain state employees by assisting them in repaying their higher education loans. An "eligible employee" is defined as someone employed by the state in its executive, legislative, or judicial branch. A "higher education loan" includes any loan for undergraduate or graduate study, covering tuition, educational, or living expenses, obtained from various sources including colleges, universities, government entities, commercial lenders, or tax-exempt organizations. The program, referred to as the "Program," will provide funds to cover 100% of an eligible employee's remaining higher education loan debt, provided they received a degree from an accredited Maryland college or university, have been employed by the state for a specified cumulative number of years, and meet any other criteria set by the Office. Priority for participation will be given to employees who graduated from institutions within the University System of Maryland or from institutions where at least 40% of students are eligible for federal Pell Grants. The Department of Budget and Management will inform state employees about the program, and the Office will adopt regulations to implement it and report annually to the General Assembly on its progress and impact on state employee recruitment and retention, with the Act taking effect on October 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0019?ys=2026RS