Key Points
- A growing number of U.S. employers are offering retirement plan matches tied to student loan payments.
- Typical match rates fall in the 4-6 % of salary range.
- Adoption remains low as it is a complicated offering and requires significant HR support to implement.
Under the provision in SECURE 2.0 (passed in late 2022) that took effect in 2024, employers can make matching contributions to qualified retirement plans (such as a 401(k), 403(b), SIMPLE IRA or 457) based on an employee’s qualified student-loan payments rather than only traditional elective deferrals.
In simple terms: if you make a student loan payment that meets the plan’s definition of “qualified”, your employer treats that payment as though you’d made a 401(k) deferral, and therefore your company match kicks in. The IRS issued guidance (Notice 2024-63) confirming that this match must be offered on the same terms as the employer’s ordinary retirement match (e.g., same percentage of pay, same vesting schedule).
What qualifies as a student loan payment? Typically federal or private loans incurred for higher education of the employee, spouse or dependent (provided the employee is legally liable – like a Parent PLUS Loan). The payment must be made during the plan year and meet other plan-specific conditions.
By enabling this match, employers aim to address a common dilemma: should employees focus on paying down debt or saving for retirement? This benefit allows both.
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Which Companies Are Offering The Student Loan Repayment 401k Match?
While adoption is low, here are some major companies offering it:
|
Company |
Match Details |
|---|---|
|
Abbott Laboratories |
5% match if employee pays at least 2% towards student loans |
|
Avangrid |
6% match |
|
Boeing |
10% match |
|
Chipotle |
4% match |
|
Comcast |
6% match |
|
Kraft |
100% match of the first 3%, then 50% match of the next 2% |
|
News Corp. |
100% match of the first 1%, then 50% match of the next 5% |
|
RTX (Raytheon) |
4% match |
|
Travelers Insurance |
5% match |
|
Verizon |
6% match |
|
Walgreens |
4% match |
|
Workday |
6% match |
What This Means For Student Loan Borrowers
For many workers, this benefit eases the pressure of balancing student loan repayment and retirement savings. If you’re repaying student debt, this allows you to build retirement assets without foregoing employer match simply because you aren’t putting money into a 401(k) deferral.
But there are realities to watch:
Eligibility and verification. Even when a company offers the benefit, you’ll likely need to meet eligibility requirements such as minimum tenure (some programs require a year of service or 1,000 hours) before the match can apply. Walgreens’ program, for example, states eligibility after one year + 1,000 hours of service. Further, you must typically submit proof of the loan payments (amount, date, borrower name, account) via a partner platform. Failure to do so may disqualify you for the match.
Match formula matters. Because the match must follow your company’s standard 401(k) match rules, you need to check what rate applies and whether the student loan payments count toward the full match or only part of it. If your employer’s ordinary match is, say, 50% up to 6% of pay, the student loan match follows that formula.
Immediate vs delayed vesting. The same vesting schedule that applies to normal employer contributions will apply to the student loan match. If your company has a delayed vesting (e.g., full vesting after three years) then the match is subject to that. That means if you leave early – they can claw it back!
Household budgeting impact. If you take advantage of this match, you may feel less pressure to choose between paying down debt and saving for retirement. However, you still need to balance cash-flow: making student loan payments plus securing employer-match plus possibly elective deferrals. It’s helpful to figure out how much match your employer offers and work backward to ensure you meet any payment thresholds.
What To Do Next?
The student loan-based retirement match is a helpful tool for workers managing dual financial priorities. It allows employers to treat loan payments like retirement contributions and deliver the same match, turning what was often a trade-off into an aligned benefit.
While adoption is still early and not every company offers it yet, the trend is slowly growing – especially among large employers in talent-competitive sectors. For borrowers and savers alike, now is a smart time to explore whether this benefit applies to you, understand the rules, and put a strategy in place to tap it if available.
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Editor: Colin Graves
The post Which Companies Offer Student Loan 401(k) Matches appeared first on The College Investor.
