From CNBC: 2024-12-04 16:37:03

Companies can now offer a “match” on student loan payments by contributing to workers’ 401(k) plans. Over 100 companies, including Kraft and Workday, have implemented this benefit, with 5% already adopting it. Secure 2.0, a retirement package, allows employers to match student loan payments starting in 2024.

Comcast is among the companies adding a student loan-401(k) match benefit in 2025 to help workers manage their finances and attract college graduates. The benefit is available to companies with other retirement plans, like 403(b) or SIMPLE IRAs. The match can be up to 6% of annual earnings.

The student loan benefit allows workers to receive a match on qualified payments, limited by the annual 401(k) contribution limit. Employers set a match cap, typically around 3% to 6% of annual salary. Companies may structure the benefit differently, but the goal is to help workers balance debt repayment and retirement savings.

Employers had started offering 401(k)-linked student loan benefits before Secure 2.0. Abbott was among the first companies to provide this benefit in 2018, with others following suit. Pharmaceutical companies were early adopters, with larger firms seeing the most significant increase in offering this benefit by 2023.

While many companies have added a student loan-401(k) match benefit, some are hesitant, with 55% saying they are “not at all likely” to adopt it in 2025. Reasons for hesitancy may include already offering different educational benefits to employees. However, interest in the benefit is expected to increase over time. Employers may not see the need for student loan repayment benefits if 401(k) participation is not affected, especially for higher earners. Some companies already offer non-elective contributions to workers, even if they don’t participate in the 401(k). However, some view this policy as unfair to only certain employees with student debt.

Despite the potential benefits, none of Lander’s clients have adopted the student loan repayment policy yet. It is recommended that employers discuss this option with their consultant to determine its necessity and impact on their workforce. Considerations should be made on whether this benefit is essential for employee retention and satisfaction.

Read more: More employers add 401(k) plan match for workers paying student loans