Maine Will Help You Pay Off Your Student Loans. Yes, Really.
Come for the student loan forgiveness. Stay for the blueberry pie. Maine's Educational Opportunity Tax Credit turns your annual loan payments into a dollar-for-dollar tax credit — and for STEM graduates, it pays you back even if you owe nothing.
The Student Loan Repayment Tax Credit (SLRTC)
In 2008, Maine launched one of the boldest talent retention programs in the country: a tax credit that reimburses residents for their student loan payments, dollar for dollar. The goal was straightforward — stop the brain drain, attract educated workers, and give young people a financial reason to plant roots in the state.
It worked well enough that in 2022 Maine replaced it with an even stronger version. The Student Loan Repayment Tax Credit (SLRTC) expanded eligibility, simplified the rules, and is the program currently in effect. Tens of thousands of Maine residents have benefited across both programs. Today it covers any accredited degree, from any college, in any field.
The headline: if you have a STEM degree, or if you attended a Maine institution, the credit is refundable — meaning Maine will send you a check even if you owe zero state income tax. You are not just reducing a bill. You are receiving money.
What Type of Credit Do You Get?
The credit type depends on your degree field and where you went to school.
Source: Maine Revenue Services. Consult a qualified Maine tax professional for your specific situation.
How to Claim It
Four steps from graduation to reimbursement.
Graduate from any accredited college
The degree can be from any accredited institution — in Maine or out of state. Associate's, bachelor's, or graduate level all qualify.
Move to Maine and get a job
You must live in Maine and work in Maine full-time. Remote workers employed by out-of-state companies may qualify — check with a tax professional.
Make your student loan payments
Pay your loans as normal throughout the year. Keep records of what you pay — principal and interest both count toward the credit.
Claim the credit on your Maine tax return
File Maine Form 1040ME and include Schedule PTFC/STFC. The credit equals what you paid that year, up to the annual cap. STEM and Maine college graduates receive a refundable credit — meaning if the credit exceeds your tax bill, Maine sends you a check.
The Real Math
What this actually looks like over 10 years for a STEM graduate paying $300/month in loans.
Example is illustrative. Actual credit amounts are subject to annual caps and program rules. Individual results will vary.
Maine Is Actively Recruiting Graduates
Maine's population skews older than any other state, and the legislature decided to do something about it. The SLRTC is a deliberate policy response: the state gives you back, as a dollar-for-dollar tax credit, whatever you paid toward your student loans that year. If you have a STEM degree or attended a Maine college, the credit is refundable — meaning if it exceeds your state tax bill, Maine writes you a check for the difference. The goal is straightforward: make the financial case for staying in Maine strong enough that educated young people choose it over higher-cost states.
- Any accredited degree — associate's, bachelor's, or graduate
- Must live in Maine as your primary residence
- Must work in Maine full-time (remote workers may qualify)
- Both federal and private student loans count
- No income limit — all earners qualify
- Stackable with federal forgiveness programs
Common Questions
Is there an income limit?
No. The SLRTC has no income cap. High earners and low earners both qualify — you simply need to live and work in Maine and have qualifying student loan debt.
What counts as a STEM degree?
The State of Maine follows the federal definition of STEM fields, which includes science, technology, engineering, mathematics, and related disciplines like computer science, data science, healthcare sciences, and environmental science.
What if I work remotely for an out-of-state employer?
This is a gray area. Maine Revenue Services considers you 'working in Maine' if Maine is your primary work location. Many remote workers qualify, but the specifics depend on your employment structure. Consult a Maine CPA.
Can I stack this with federal loan forgiveness programs?
Yes. The SLRTC is a state-level benefit and does not interfere with federal programs like Public Service Loan Forgiveness (PSLF) or income-driven repayment. Stacking both is possible and common.
Does the credit apply to private student loans?
Yes — both federal and private student loans qualify as long as the debt was incurred to pay for a qualifying degree.
How long does the program run?
The original Educational Opportunity Tax Credit (EOTC) ran from 2008. In 2022, Maine replaced it with the Student Loan Repayment Tax Credit (SLRTC), which expanded eligibility and simplified the rules. The SLRTC is the current active program.
Get the Full Picture
The Maine Relocation Guide includes a dedicated chapter on the SLRTC — eligibility rules, how to file, STEM field list, and a worksheet to calculate your estimated benefit before you make the move.
Talk to Someone Who Made the Move
Our network of Maine-based realtors works with relocating graduates regularly. They know which towns have the strongest job markets, broadband access, and communities for young families.
Connect with a Maine Realtor