Enter a search term.
line drawing document and pencil

File a claim

Need to file an insurance claim? We’ll make the process as supportive, simple and swift as possible.

Action Teams

If you want to make an impact in your community but aren't sure where to begin, we're here to help.
Illustration of stairs and arrow pointing upward

Contact support

Can’t find what you’re looking for? Need to discuss a complex question? Let us know—we’re happy to help.
Use the search bar above to find information throughout our website. Or choose a topic you want to learn more about.

How the SECURE Act 2.0 may help employees with student loans

Two male colleagues working together at a computer.
SrdjanPav/Getty Images

Deciding between paying your student loans and saving for retirement is a conundrum for many younger workers. You want to reduce your student loan balance, but know that saving for retirement is also important. Thanks to the SECURE Act 2.0 student loan provisions that take effect in 2024, your employer may offer you a better chance of doing both.

Secure Act 2.0 & student loan matching

Employer-sponsored retirement accounts, like 401(k)s, 403(b)s and SIMPLE IRAs, provide the opportunity for workers to save for retirement with the possibility of employers kicking in money as well. Often, if you contribute a certain percentage of your salary to your retirement plan, employers typically have a policy of putting in a matching portion. Choosing to divert some of your paycheck to retirement can be hard to do when you also feel like you should use that money to pay off student loan debt.

The recent federal legislation known as the SECURE Act 2.0 is a game-changer. Beginning in 2024, when you make student loan payments, your employer will have the option to match your student loan payments as if they were payments to a qualified retirement plan. Under the new law, your loan payments will be treated as elective deferrals just like your contributions, triggering SECURE Act 2.0 employer-matching contribution policies. This allows eligible employees of employers who choose to offer this match, to make saving for retirement a priority and not miss out on matching contributions for their retirement plans.

Qualifications for getting a student loan match

Your loan payment must be for a qualified student loan (according to IRS guidelines) that was taken out to pay for higher education costs—like tuition, fees, books or expenses—for you, your spouse or a dependent. Loans used for expenses like room and board, non-credit courses and sports are not eligible.

The student must have been enrolled at least half-time in a program that leads to a certificate or degree. There is no requirement that the student must graduate.

Check with your employer to find out if they have a matching program for their retirement plan and if they will be offering to match student loan payments as well. If they do match, find out what documentation they need for your loan payments to match them when the option becomes available.

Get help navigating Secure Act 2.0 changes

It's important to discuss these SECURE Act 2.0 changes as well as the other significant changes in the law with an experienced professional. Consider reaching out to a local financial advisor to learn more about the legislative updates and how you can use them to optimize your financial security.