Higher Education - Maryland Public Service Loan Forgiveness Program - Establishment

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0019*

HOUSE BILL 19
F2, P4 6lr1621
(PRE–FILED)
By: Delegate Toles
Requested: October 31, 2025
Introduced and read first time: January 14, 2026
Assigned to: Appropriations

A BILL ENTITLED

AN ACT concerning 1

Higher Education – Maryland Public Service Loan Forgiveness Program – 2
Establishment 3

FOR the purpose of establishing the Maryland Public Service Loan Forgiveness Program 4
to assist in the repayment of higher education loans owed by State employees in 5
order to attract, recruit, and retain these employees; requiring the Office of Student 6
Financial Assistance within the Maryland Higher Education Commission to 7
administer the Program ; and generally relating to the establishment of the 8
Maryland Public Service Loan Forgiveness Program for State employees. 9

BY adding to 10
Article – Education 11
Section 18 –4201 through 18 –4206 to be under the new subtitle “Subtitle 42. 12
Maryland Public Service Loan Forgiveness Program” 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2025 Supplement) 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17

Article – Education 18

SUBTITLE 42. MARYLAND PUBLIC SERVICE LOAN FORGIVENESS PROGRAM. 19

18–4201. 20

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 21
INDICATED. 22

2 HOUSE BILL 19

(B) “ELIGIBLE EMPLOY EE” MEANS AN INDIVIDUAL EMPLOY ED BY THE 1
STATE IN THE EXECUTIVE, LEGISLATIVE, OR JUDICIAL BRANCH. 2

(C) “HIGHER EDUCATION LOAN” MEANS ANY LOAN FOR U NDERGRADUATE 3
OR GRADUATE STUDY TH AT IS OBTAINED FOR T UITION, EDUCATIONAL EXPENSES, 4
OR LIVING EXPENSES FROM: 5

(1) A COLLEGE OR UNIVERSIT Y, GOVERNMENT, OR COMMERCIAL 6
SOURCE; OR 7

(2) AN ORGANIZATION , AN INSTITUTION , AN ASSOCIATION , A 8
SOCIETY, OR A CORPORATION THAT IS EXEMPT FROM TAXATION UNDER § 501(C)(3) 9
OR (4) OF THE INTERNAL REVENUE CODE OF 1986. 10

(D) “PROGRAM” MEANS THE MARYLAND PUBLIC SERVICE LOAN 11
FORGIVENESS PROGRAM. 12

18–4202. 13

(A) THERE IS A MARYLAND PUBLIC SERVICE LOAN FORGIVENESS 14
PROGRAM. 15

(B) THE PURPOSE OF THE PROGRAM IS TO ATTRACT, RECRUIT, AND RETAIN 16
STATE EMPLOYEES. 17

(C) THE OFFICE SHALL DISTRIBUTE FUNDS FROM THE PROGRAM TO ASSIST 18
IN THE REPAYMENT OF HIGHER EDUCATION LOAN S OWED BY AN E LIGIBLE 19
EMPLOYEE WHO: 20

(1) RECEIVED AN UNDERGRADUATE, GRADUATE, OR PROFESSIONAL 21
DEGREE FROM AN ACCREDITED COLLEGE OR UNIVERSITY IN THE STATE; 22

(2) HAS BEEN EMPLOYED BY THE STATE FOR AT LEAST 10 23
CUMULATIVE YEARS; AND 24

(3) SATISFIES ANY OTHER CRITERIA ESTABLISHED BY THE OFFICE. 25

18–4203. 26

(A) SUBJECT TO THE AVAILABILITY OF FUNDS, THE AWARD AMOUNT UNDER 27
THE PROGRAM SHALL BE 100% OF THE ELIGIBLE EMPL OYEE’S REMAINING TOTAL 28
HIGHER EDUCATION LOAN DEBT. 29

HOUSE BILL 19 3

(B) AN AWARD UNDER THE PROGRAM SHALL BE USED ONLY FOR 1
REPAYMENT OF HIGHER EDUCATION LOANS OWED BY THE ELIGIBLE EMPLOYEE. 2

18–4204. 3

THE DEPARTMENT OF BUDGET AND MANAGEMENT SHALL PROV IDE 4
INFORMATION ABOUT THE PROGRAM TO STATE EMPLOYEES. 5

18–4205. 6

(A) THE OFFICE SHALL ADOPT RE GULATIONS TO CARRY O UT THIS 7
SUBTITLE. 8

(B) THE REGULATIONS SHALL ESTABLISH THAT PRIOR ITY FOR 9
PARTICIPATION IN THE PROGRAM SHALL BE GIVEN TO AN ELIGIBLE EMPLOYEE WHO 10
GRADUATED FROM: 11

(1) AN INSTITUTION WITHIN THE UNIVERSITY SYSTEM OF 12
MARYLAND; OR 13

(2) AN INSTITUTION OF HIG HER EDUCATION WHERE AT LEAST 40% 14
OF THE ENROLLED STUDENTS ARE ELIGIBLE TO RECEIVE FEDERAL PELL GRANTS. 15

18–4206. 16

SUBJECT TO § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE OFFICE 17
SHALL REPORT TO THE GENERAL ASSEMBLY ON OR BEFORE JANUARY 1 EACH YEAR 18
ON: 19

(1) THE IMPLEMENTATION OF THE PROGRAM; AND 20

(2) ANY EFFECT S THE PROGRAM HAS ON STATE EMPLOYEE 21
RECRUITMENT OR RETENTION. 22

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
October 1, 2026. 24