The SECURE Act 2.0: Get a Retirement Match for Student Loan Payments

By Kassondra Cloos | Published on February 23, 2026

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For many young Americans, saving for retirement is a “tomorrow” problem. Student loan payments take up too much of their disposable income, so it’s not easy to contribute to their workplace retirement plans even when they have access to employer matching. Thanks to the new SECURE Act 2.0, however, employers can now contribute to retirement plans based on their employees’ student loan payments.

What is the SECURE Act 2.0?

The original SECURE Act — which stands for “Setting Every Community Up for Retirement Enhancement” — was passed by Congress in 2019. The SECURE Act 2.0 was signed into law in late 2022, and many of the provisions come into effect this year and next year.

The act intends to address challenges that make it harder for people to save for retirement, such as student loan repayment. It also:

• Expands access to retirement programs for part-time workers
• Makes it easier for people to access retirement funds for emergency expenses
• Increases catch-up amount limits so people can save more later in life, when their incomes are higher and they’re closer to retirement age

This is happening now because the U.S. has been experiencing somewhat of a retirement “crisis.” Alongside major increases in cost-of-living expenses, just 40% of people feel that their retirement savings were on track, according to a Federal Reserve survey. Those funds are increasingly important as Americans are living longer and longer lives.

How the SECURE Act 2.0 affects student loan borrowers

The SECURE Act 2.0 includes a provision that allows employers to treat an employee’s qualifying student loan payments as elective deferrals or after-tax contributions for the purpose of matching contributions to retirement plans.

In other words, your employer may have the option to provide matching contributions to your retirement accounts based on your student loan payments.

For example, in the past, if you contributed 3% of your yearly salary to your retirement account, an employer who offers a matching program might contribute up to 3% as well.

Under the new provision, if you contributed 3% of your yearly salary to student loan payments, an employer offering a matching program could contribute 3% to your retirement account.

Traditionally, borrowers burdened with student loan debt had to forego saving for retirement to pay down their student loans. The SECURE Act 2.0 aims to encourage employers to support their employees’ retirement savings goals while helping them pay down their student loans.

Who is eligible for the new program?

The SECURE Act 2.0 changes certain rules for workplace retirement plans that should make it easier for people to save. Eligibility varies for each provision of the act, but anyone with student loans and an employer-sponsored retirement plan is eligible as far as governmental plans are concerned.

Starting this year, employer contributions can match a combination of elective deferrals and qualified student loan payments. This includes both federal and private student loans, as long as they were used for higher education expenses.

This also includes student loans that have been refinanced, regardless of whether they were originally federal or private student loans. There is some debate, however, about whether Parent PLUS loans will qualify.

Other key provisions of the act include:

• As of this year, eligible employees will be able to link their employer retirement plan to an emergency savings account, so that they can make up to four early withdrawals per year penalty-free.
• Previously, employer matches needed to be made pre-tax. The new law allows plan sponsors to deposit contributions into Roth accounts, which can be distributed tax-free in retirement. With a Roth 401(k) or Roth IRA account, you generally pay more income tax up front, but less tax in the long run.
• Under current law, part-time employees who worked at least 500 hours in three consecutive years are eligible for retirement savings plans. Starting next year, the wait will be shortened to two years.
• Beneficiaries of 529 college savings plans will be able to convert up to $35,000 of unused funds into Roth contributions, though the rollovers will be subject to annual contribution limits.

How do I get my employer to offer this matching program?

Whether you’re already enrolled in an employer-sponsored retirement plan or not, the first thing you should do is contact your HR department. Find out what benefits your company offers, and ask how to enroll.

If your HR department isn’t familiar with the new rules, you could also try contacting the provider of the retirement plan — or a financial advisor, if you have access to one. Ask for guidance on how to prove your student loan payments so that you can take advantage of employer matching as a plan participant.

If your company doesn’t offer a defined contribution plan or matching benefit, it’s still worth talking to your HR department to express your interest. Retirement plans can be a great tool for employee retention, so it might not be a bad idea to (gently) make it clear that this would help keep you around.

What else changed with the SECURE Act 2.0?

The SECURE Act 2.0 includes provisions that impact virtually everyone. Whether you have an employer-sponsored retirement plan now or you may have one in the future, the act changes the way everyone can contribute to and withdraw from their retirement savings accounts.

Significant additional changes include:

• Starting last year, the age for required minimum distributions (RMD) changed from 72 to 73. In 2033, this will change again to age 75. This means people can save longer, and allow that money to grow, before they’re required to dip into it.
• Starting in 2025, most companies will be required to set up automatic enrollment in their retirement savings programs, with a contribution of 3%. Current law allows companies to require employees to opt in. Small businesses with 10 or fewer employees, and new businesses less than three years old will be exempt from auto enrollment.
• Starting in 2027, the old “Saver’s Credit” will change into the “Saver’s Match.” Instead of receiving a tax credit, low- to middle-income taxpayers will be eligible for up to $2,000 per year in federal matching, which will be deposited directly into their individual retirement account or employer-sponsored plan.
• Starting in 2025, catch-up contribution limits will increase.
• As of 2023, retirees over the age of 70.5 can make a charitable gift annuity of up to $50,000 as part of a qualified charitable deduction (QCD).

When does the SECURE Act 2.0 take effect?

The effective dates of the SECURE Act 2.0 are spread out over the next decade, though some measures have already taken hold. The provision allowing student loan payments to count toward employer matching went into effect Jan. 1, 2024.

Learn more about Earnest student loan refinancing

If you’re struggling to make your student loan payments while saving for retirement, refinancing your student loans could help free up more of your income. Earnest offers low rates, flexible repayment plans, and a 9-month grace period – three months longer on average. Want to see what you’re eligible for? Try our rate calculator. It’s fast, free, and won’t affect your credit score.

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About the Author

Kassondra Cloos

Kassondra Cloos is a writer, editor, and former Earnest client. She refinanced her own student loans with Earnest after graduating and has first-hand experience with the refinancing process. She has been writing about personal finance and student loans since 2017. She also writes about sustainable travel and adventure for The Guardian, Outside, Backpacker, and many other publications. You can find more of her work via her travel newsletter, Out of Office.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.