3 Tiers of Support: Build Student Loan Benefits for Any Budget

Posted on: May 14, 2025

Student loan debt affects millions of Americans—including many of your employees. For younger workers, this can delay major life milestones like buying a home, saving for retirement, or even starting a family. For older workers, it can delay retirement. That debt doesn’t just stay at home—it shows up at work as stress, distraction, and turnover.

The good news? There are several solutions employers can use to help relieve the financial stress. Best of all? Supporting employees with student loan debt doesn’t have to be a one-size-fits-all investment. Whether you’re exploring low-cost options or ready to roll out a more robust program, there’s a smart, scalable approach that can work for your team—and your budget.

Here are three ways to support your workforce with student loan benefits, from cost-neutral to full-scale:

1. Entry-Level Support (Cost-Neutral): Match Student Loan Payments With 401(k) Contributions

Thanks to the SECURE Act 2.0, employers can treat employees’ student loan payments as 401(k) contributions for the purpose of matching—even if the employee isn’t contributing directly to their retirement plan.

This provision is a game-changer for financially strapped employees who’ve had to choose between paying off debt and saving for retirement. Now they don’t have to choose—and you don’t have to increase your benefits budget to help them.

Why This Works

While this option doesn’t directly lower an employee’s student loan balance, it does relieve stress for your employee, who may be forced to make tough decisions about their financial priorities. The benefits it provides are several, including:

  • Keeping employees on track for retirement.
  • Recognizing real financial behavior.
  • Making use of your existing retirement match budget.

Learn more about implementing provisions of SECURE Act 2.0 with help from BenefitEd’s expert team.

2. Mid-Level Support: Make Direct Contributions to Student Loan Debt

If you’re ready to take a more active role, a student loan repayment benefit allows your company to contribute directly toward employees’ student loan balances.

You set the amount and frequency—it could be a flat monthly contribution, a milestone-based incentive, or a mix of both. This option is highly valued by employees and can quickly set your company apart in a competitive hiring market.

Why This Works

The help from employers in making direct payments toward their student loans would relieve pressure for many employees. This mid-level option offers:

  • A flexible structure that can be tailored to your workforce, goals, and budget.
  • A competitive edge in recruiting and help retaining employees.
  • Reassurance to your employees that you’re invested in their financial future.

3. Top-Tier Support: Offer Comprehensive Education Benefits

For employers seeking to lead the way in employee support and retention, combining multiple education benefits offers powerful long-term impact. This could include:

This trio supports your employees’ past, present, and future education journeys—helping them pay down existing debt, save for their own or their children’s future, and continue their own learning and growth today.

Why This Works

Companies that provide a higher level of support for their employees who have student loan debt can gain several benefits, including:

  • Building a reputation as offering a best-in-class benefits package.
  • Attracting talent across generations and life stages.
  • Driving loyalty and engagement by showing long-term investment.

Learn more about BenefitEd’s flexible suite of full education benefits.

Whatever Level You Choose, Your Help Matters

You don’t need a huge budget to make a meaningful impact. Even small steps—like recognizing student loan payments through your 401(k) match—can help get your employees on the path to a brighter financial future and show them you care.

Whether you’re just getting started or ready to expand your offerings, BenefitEd can customize the education benefits strategy that fits your team—and your goals. Our platform can be customized to the needs of your employees, your goals, and your budget.

Ready to Help Employees—and Your Bottom Line?

If you’re ready to consider your options, reach out to our expert team. Let’s start building education benefits that matter to your employees—according to your budget.