Should You Really Use 401(k) to Pay Off Student Loans? – Avoid This Mistake + FAQs

Imagine staring at a $30,000+ student loan balance while your 401(k) nest egg grows untouched.

Americans collectively owe over $1.7 trillion in student loans, and one recent poll found 51% of Americans with retirement accounts have raided them early for cash. The temptation to trade a future nest egg for relief from today’s debt is real – but is it a wise move or a costly mistake?

Spoiler: using your 401(k) to pay off student loans is usually a 🚩 red flag, but there are nuances and rare exceptions. We’ll cover the crucial laws, pitfalls to avoid, real-world scenarios, and smarter alternatives so you can make an informed decision.

• 🎯 Direct Answer & Expert Verdict: Whether tapping your 401(k) to crush student debt is a good idea (and our verdict right up front).
• ⚠️ Hidden Costs & Penalties: The taxes, penalties, and long-term investment growth you’d sacrifice by cashing out retirement savings early (it’s more than you think).
• 📜 Laws & Loopholes: Key federal rules (and a new 2024 law) plus state-specific nuances that affect using a 401(k) for loan repayment.
• 🔎 Real-Life Scenarios: Side-by-side comparisons of three common approaches – an early withdrawal, a 401(k) loan, and doing nothing – to see which strategy wins over time.
• 💡 Better Alternatives: Smart ways to manage student loans (income-driven plans, refinancing, etc.) without derailing your retirement plans.

Quick Answer: Usually a Bad Idea to Tap Your 401(k)

By and large, using your 401(k) savings to pay off student loans is not recommended.

The reason is simple: any money you withdraw from a 401(k) before age 59½ will likely get hit with a 10% early withdrawal penalty on top of regular income taxes. That means you lose a sizable chunk of your savings right off the bat.

More importantly, once you pull money out of your 401(k), it’s no longer invested for your retirement. You lose years (perhaps decades) of compound growth, which could leave you with far less money when you actually need it in retirement.

In most cases, the long-term cost to your financial future far outweighs the short-term benefit of becoming student debt-free a bit sooner.

Bottom line: It’s usually a bad trade-off. You’re essentially robbing your future self to pay a bill today. That said, there are a few limited scenarios where tapping a 401(k) might be considered – for example, if you’re over 59½ (no penalty applies) and have ample retirement funds, or if your student loan interest rate is sky-high and you’ve exhausted all other options.

The Temptation: Why Borrowers Eye Their 401(k) for Debt Relief

Why would anyone think about using retirement money to pay off student loans? 😕 It usually comes down to immediacy and stress. Student debt can feel like a heavy weight for years or even decades. The idea of instantly erasing that burden by dipping into your 401(k) is undeniably appealing. Here are a few reasons people find this option tempting:

• Psychological Relief: The emotional toll of debt is real. Becoming debt-free by cashing out retirement savings can feel like getting a fresh start. No more monthly loan bills, no more interest accruing, no more debt hanging over your head. For many, that relief seems worth almost any cost.
• “It’s My Money” Mentality: You might look at your 401(k) statement and think, “I have $50,000 sitting there. Why not use it? It’s my money, after all.” It’s easy to view your retirement account as an emergency piggy bank. After all, unlike a bank loan or credit card, the 401(k) is your own savings.
• High Interest Pain: Some borrowers have private student loans with high interest rates (think 8%, 10%, even 12%). Watching a high-interest loan grow can be frustrating. Using a chunk of 401(k) money to pay it off might seem smart if the alternative is years of hefty interest payments.
• Improving Cash Flow: Freeing up the cash from a monthly student loan payment can make a big difference in your budget. For someone struggling to buy a home or start a family, eliminating a $300-$500/month loan payment by tapping retirement funds might look like a quick fix to improve their debt-to-income ratio.
• Avoiding Default or Garnishment: In extreme cases, a borrower facing default on student loans (and potential wage garnishment or credit damage) might see their 401(k) as the only salvation to settle the debt and avoid financial ruin.

These reasons are understandable. It’s human nature to want to solve an urgent problem by using available resources. However, what’s important is seeing the full picture. That “available” 401(k) money comes with strings attached — and that leads us to the hidden costs that aren’t immediately obvious in the heat of the moment.

⚠️ The Hidden Costs: Taxes, Penalties & Lost Growth

Before you decide to pull the plug on your 401(k) for loan repayment, consider the steep price of accessing that money early. Cashing out retirement funds is not like withdrawing from a savings account. Here are the key hidden costs:

• Immediate Tax Hit: Traditional 401(k) withdrawals are subject to federal income tax (and usually state income tax as well). If you take out $20,000 from your 401(k) to pay loans, that $20k is treated as extra income on your tax return. For example, if you’re in the 22% federal tax bracket, you’ll owe about $4,400 in federal taxes on that withdrawal (plus any state taxes). Suddenly, part of your money is gone to Uncle Sam, not to your loans.
• 10% Early Withdrawal Penalty: On top of income taxes, the IRS slaps on a 10% penalty for early withdrawals if you’re under 59½. Using the $20,000 example, that’s an extra $2,000 lost. Combined with the income tax, you might lose around $6,400 (or more) out of that $20k withdrawal right off the bat. In some states, it gets worse – for instance, California charges an additional 2.5% penalty on early distributions. So the true cost of accessing that money is very high.
• Lost Investment Growth: Taxes and penalties are the immediate sting, but the opportunity cost is even bigger. Money in your 401(k) is invested, potentially earning returns and compounding over time. When you withdraw funds, you forego all the future gains those funds would have earned. This can amount to a huge loss for your future self. For example, $20,000 left in a 401(k) could grow to roughly $76,000 after 20 years (assuming a 7% average annual return). By withdrawing it now, you’re forfeiting that future nest egg. Essentially, you trade a chunk of your comfortable retirement for a smaller student loan balance today.
• Hard to Replace: After you take money out, it’s difficult to put it back. Annual 401(k) contribution limits mean you can’t just refill the account on your own schedule; it could take years to rebuild the balance you eroded, if you ever do. Meanwhile, you’ve permanently lost the advantage of time and compounding.
• Less Retirement Security: Ultimately, tapping your 401(k) leaves you with a smaller retirement fund. That could mean delaying retirement or retiring with less income. It might also leave you more vulnerable in later years (since you’ll have fewer savings to draw on for medical bills or living expenses in old age). While you may gain relief now, you risk feeling the pinch when you’re older and no longer working.

Let’s put this into perspective with a concrete example: Say you’re 35 years old and decide to withdraw $40,000 from your 401(k) to wipe out $40,000 in student loans. After a 10% penalty and, let’s assume, ~20% combined federal/state taxes, you could easily lose around 30% of that withdrawal to the IRS – leaving you only about $28,000 to actually apply to your loans. (You’d still owe the remaining $12,000 on your student debt, which you’d have to find elsewhere.) Meanwhile, that $40,000 you removed is no longer growing in your retirement account. If left invested, $40k could potentially grow to over $300,000 by the time you’re 65. That’s a $300k loss to your future retirement for the sake of paying off $28k of debt now. 😬

When you run the numbers, it becomes clear why financial advisors cringe at the thought of cashing out a 401(k) for anything other than dire emergencies. You’re paying a big premium to use that money for debt relief. Next, we’ll compare this approach to some alternatives, like taking a 401(k) loan or simply keeping your retirement funds intact.

Comparing Your Options: 401(k) Withdrawal vs. 401(k) Loan vs. Staying the Course

If you’re determined to leverage your retirement savings to deal with student loans, it’s critical to understand the different methods and how they stack up:

1. 401(k) Early Withdrawal (Cash-Out) – Permanently taking money out of your 401(k) to pay off debt.
2. 401(k) Loan – Borrowing money from your 401(k) balance, which you must repay to your account over time.
3. Do Nothing (Keep Investing) – Leaving your 401(k) alone and paying your student loans through regular payments or other strategies.

Let’s illustrate the outcomes of these three scenarios side by side:

In most cases, the “Stay the Course” approach wins over time. Yes, you keep the student loan for now, but you avoid the severe downsides of the other two options. The 401(k) loan can be a middle-ground if you’re disciplined, but it carries risk (job loss or default can put you right back into withdrawal territory). We’ll delve more into alternatives in a moment, but first, let’s review what the law says – because some rules and new laws might influence your decision.

📜 Understanding the Law: Federal Rules (and New Changes) First

Before making any decision, you should know the legal landscape around retirement funds and student debt. Here’s a breakdown of relevant federal laws and regulations:

• IRS Early Withdrawal Rules: The federal law is clear – if you withdraw from a 401(k) before age 59½, you’ll incur a 10% early withdrawal penalty on the taxable portion of the distribution, unless you meet a specific exception. Unfortunately, paying off student loans is not one of the allowed exceptions. (Those exceptions mainly include things like serious medical bills, permanent disability, or separating from your job at age 55+.) So from the IRS’s perspective, a student loan payoff doesn’t get special treatment; it’s a premature dip into retirement, and it’s penalized accordingly.
• 401(k) Loans Are Permitted: Federal rules do allow 401(k) loans (up to certain limits) as an alternative to outright withdrawals. By law, you can borrow up to 50% of your vested 401(k) balance, or $50,000, whichever is less, and typically must repay it within 5 years (longer if it’s used to buy a home). No taxes or penalties apply to a properly repaid 401(k) loan. This is why some borrowers consider a 401(k) loan to pay off student debt – it avoids the IRS penalty. However, not all employer plans offer loans, and if they do, they may impose their own limits or rules.
• Retirement Funds are Protected in Bankruptcy: Here’s an important legal protection – 401(k) accounts (and similar retirement plans) are generally shielded from creditors and lawsuits under federal law (ERISA). Even if you default on debts (including student loans), creditors typically cannot seize your 401(k) assets. This protection is one reason to think twice before withdrawing funds. If you’re in such financial trouble that you’re considering drastic measures, remember that your retirement money is, by design, hard for others to touch. (However, once you withdraw money and put it in your bank, those funds lose their protected status.)
• Student Loans Hard to Discharge: On the flip side, federal student loans have notoriously strict rules for discharge – they usually survive even bankruptcy (unless you prove “undue hardship” in court, a very tough standard under the Brunner test). This harsh reality sometimes pressures people into thinking their only option to get rid of student debt is to pay it off by any means necessary (even draining retirement savings). It’s a flaw in the system that student debt is sticky while retirement funds are untouchable by creditors. But Congress has started addressing related issues in other ways.
• New Law – 401(k) Match for Student Loan Payments: A recent federal law change (the SECURE Act 2.0 of 2022) is actually good news for borrowers. Starting in 2024, employers can offer a 401(k) “student loan match” program. This means if you direct your money to pay student loans instead of contributing to your 401(k), your employer can still contribute a matching amount to your 401(k) as if you had made a retirement contribution. 💡 Translation: You don’t have to miss out on retirement savings (the match) just because you’re prioritizing student loan payments. This new provision doesn’t directly help you pay off loans with your 401(k), but it alleviates the opportunity cost of focusing on debt over savings. If your employer offers this benefit, take advantage – it’s essentially free retirement money while you tackle your loans.
• COVID-19 Precedent: In 2020, Congress temporarily waived the 10% penalty on up to $100k of retirement withdrawals for COVID-related hardships. Some folks used that opportunity to pay down debt. However, that was a one-time exception during an emergency. As of now, there is no general federal program waiving penalties for using retirement funds on student loans. The standard rules (and penalties) are back in full force.

Bottom line (federally): The government strongly prefers you leave your retirement money alone until retirement – hence the penalties. It has even created new ways (like the loan-match program) to encourage you to pay loans without shortchanging your 401(k). Now, let’s consider how your decision might be affected by where you live, since state laws add another layer to the equation.

State-by-State Nuances: Taxes and Other Considerations

State laws can influence the cost and consequences of using a 401(k) for student loan repayment. Here are some nuances to be aware of:

• State Income Taxes: If your state has an income tax, an early 401(k) withdrawal will usually be subject to state tax as well as federal. For example, if you live in a state with a 5% income tax, that $20,000 withdrawal we discussed might incur roughly another $1,000 in state taxes. A few states (like Pennsylvania) exempt retirement income from taxation even if taken early, but most tax it as ordinary income. On the other hand, if you’re in a state with no income tax (e.g., Florida, Texas), you dodge the state tax hit – but you’ll still owe the federal taxes and penalty.
• Additional State Penalties: Some states piggyback on the federal penalty with their own penalty for early withdrawals. California, for instance, imposes an extra 2.5% state penalty on early distributions from retirement accounts. That means a Californian under 59½ would effectively pay 12.5% in penalties (10% federal + 2.5% state) on a 401(k) cash-out, plus taxes. It’s important to know if your state has any similar rules because it can tilt the math even further against withdrawing funds.
• Creditor Protection Under State Law: While ERISA-covered 401(k)s are protected by federal law, if you have an IRA or a retirement plan that isn’t covered by ERISA, state laws determine how safe those are from creditors. Most states protect traditional and Roth IRAs in bankruptcy (often up to a certain dollar amount), but protection outside bankruptcy can vary. If you were thinking of rolling a 401(k) to an IRA to then use for loans, be careful – you might alter how well the funds are shielded from creditors. In any case, leaving money in a 401(k) generally offers strong protection in all states.
• Community Property States: If you’re married and live in a community property state, technically your spouse has a legal half-interest in what you accumulate during the marriage (including retirement savings). This usually only matters in divorce or death, but it’s a reminder that taking a big chunk from retirement could also impact your spouse’s financial security. It’s more of a side note, but worth considering if, say, you’re emptying a 401(k) that your spouse was counting on for both of your retirement.
• State Programs or Incentives: A few states have their own programs to help with student loans (like tax credits for payments or state-specific refinancing options). While these don’t directly relate to 401(k)s, they could provide alternatives so you wouldn’t feel as much pressure to raid your retirement. It’s worth researching if your state offers any relief or assistance for student loan borrowers.

In summary, always factor in your state’s tax bite and rules. Depending on where you live, the penalty and tax situation could be even more punishing than you initially expect – or occasionally a tad more lenient. Now, having gone through the pitfalls and laws, let’s weigh the pros and cons explicitly and look at scenarios where tapping your 401(k) might (or might not) make sense.

Pros and Cons of Using a 401(k) to Pay Off Student Loans

To synthesize the discussion, here’s a quick look at the potential advantages and disadvantages of using your 401(k) money for student debt. This highlights why it’s usually a tough call:

As the table shows, the cons usually outweigh the pros except in very specific situations. Speaking of which, let’s discuss those scenarios: when might tapping your 401(k) actually make sense, and when is it clearly a bad idea?

When Could It Make Sense to Use Your 401(k)? (Rare Cases)

We’ve been largely against the idea, but are there times when using retirement money to clear student debt might be reasonable? It’s rare, but possible. Consider these scenarios as exceptions:

• You’re Nearing Retirement Age: If you’re older than 59½, the 10% penalty is off the table. Suppose you’re 60 years old and still have a small student loan balance remaining. At this point, withdrawing from your 401(k) is just a normal taxable distribution (something you’ll be doing in a few years anyway). If your retirement is otherwise on track and the loan is just an annoyance, you might decide to pay it off for peace of mind. Example: Mary is 62 with a $500,000 401(k) and $10,000 left on a student loan at 5% interest. She’s retired and living on Social Security plus some withdrawals. Mary could take out $10k from her 401(k) now to kill the debt. She’ll pay tax on that $10k, but no penalty. Given her large remaining nest egg, this move barely dents her retirement security, and she’s happy to be debt-free. For someone like Mary, using the 401(k) to eliminate a small balance can be a reasonable choice.
• Extraordinarily High Interest Debt: If your student loans have an exorbitant interest rate (maybe you have a private loan at 12% APR) and you can’t refinance it, the math changes a bit. A 12% guaranteed cost (debt interest) is hard to swallow, and investments may not reliably return that high a rate. Using some retirement funds to knock out a portion of that debt could save you a lot of interest in the long run. However, you’d still need to account for taxes/penalties — effectively, your withdrawal might cost ~30% upfront, so you’d need that debt interest to greatly exceed 30% of the balance over the payoff period to even break even. In practice, it’s only potentially favorable if the loan is both high-interest and you plan to stretch payments over many years. Even then, it’s worth exploring other avenues (like a home equity loan or other lower-interest sources) before raiding a 401(k).
• No Other Options in a Crisis: If you’re genuinely out of options – for example, you lost your job, emergency funds are depleted, you can’t afford your loan payments, and default is looming – dipping into retirement might be the lesser of two evils. Defaulting on federal student loans can lead to aggressive collection (and for federal loans, they can even garnish your wages or take a portion of Social Security later, without a court order). In such a dire scenario, using some 401(k) money to get through the crisis or keep the loans current might be justifiable. This is truly a last resort scenario when keeping your retirement intact is a luxury you can’t afford in the moment. Important: Before doing this, make sure you’ve talked to your loan servicer about hardship options (deferment, forbearance) and see if you qualify for income-driven repayment that could temporarily reduce or suspend your payments. Those programs exist precisely to help avoid drastic measures.
• Oversaved for Retirement: A good problem to have: if you’ve been an exceptionally disciplined saver, it’s conceivable that you have “more than enough” in retirement funds and relatively small student debt. In technical financial planning terms, every dollar in your 401(k) might not be giving you additional utility if you’re already on track to meet your retirement goals comfortably. In that case, using a small percentage of your 401(k) to eliminate a moderate student loan could be rational. However, very few people are truly in a position of excess retirement savings (more than they’ll ever need). And even if you think you are, it’s wise to double-check assumptions (maybe with a financial advisor) because life can throw curveballs that make that extra cushion suddenly useful.

Ask yourself this key question: “Will using my 401(k) now significantly hurt my retirement security later?” If the answer is “no, it won’t really hurt” – which would likely require being older or having an unusually large surplus – then the move might be acceptable. If the answer is “yes” or even “maybe,” pause and explore other options.

💡 Smarter Alternatives to Tapping Retirement Funds

Before pulling the trigger on a 401(k) withdrawal, make sure you’ve looked into these alternative strategies for handling student debt. They can help lighten the load without raiding your future nest egg:

• Income-Driven Repayment (IDR) Plans: If you have federal student loans, consider enrolling in an IDR plan. These plans cap your monthly payment based on your income and family size. In some cases (if your income is low relative to debt), your payment could be very small, even $0. While interest can still accrue, IDR can remove the immediate strain and prevent default. Importantly, any balance remaining after 20 or 25 years on an IDR plan can be forgiven by the government. (Note: forgiven balances may be taxable as income in the future, except for Public Service Loan Forgiveness which is tax-free.)
• Public Service Loan Forgiveness (PSLF): If you work in the public or non-profit sector, you might qualify for PSLF – forgiveness of your remaining federal loan balance after 10 years of qualifying payments. This program can effectively wipe out large debts tax-free, but you have to meet all the requirements (correct loan type, on-time payments, qualifying employer, etc.). If you’re on track for PSLF or a similar forgiveness program, do not pull money from your 401(k) to pay loans! You could be throwing away a benefit that takes care of the debt for you.
• Refinancing or Consolidation: For private student loans (or if you’re willing to give up federal loan benefits), refinancing through a private lender might secure you a lower interest rate or better terms. If your credit score and income have improved since you took the loans, you might save a lot in interest. Lowering your rate from, say, 8% to 4% can make the debt more manageable and reduce the urgency to pay it off aggressively. It’s generally better to refinance (if you can) than to sacrifice retirement funds. Just be cautious about refinancing federal loans – you lose access to federal protections and programs once they become private.
• Partial 401(k) Loan (if absolutely necessary): If you’re determined to leverage your 401(k), a loan from the 401(k) is usually a better choice than a straight withdrawal. As noted, a loan avoids taxes and penalties as long as you repay it. It essentially lets you “borrow from yourself.” The interest you pay goes back into your account. Just remember, during the loan period that money is out of investment circulation, and if something goes wrong (job loss, etc.), it could convert into a taxable withdrawal. Use this with caution: borrow only the minimum you need and have a solid repayment plan. Think of it as a last resort bridge, not a free pass.
• Adjust Your Contributions (Temporarily): Another approach is to adjust how you allocate your current income between retirement and debt. For instance, you might temporarily reduce your 401(k) contributions (especially if you’re contributing beyond any employer match) and funnel that extra take-home pay toward your student loans. However, try to always contribute enough to get any employer match – that’s free money you don’t want to leave on the table. Once the loans are paid off or more manageable, you should ramp your retirement contributions back up. This way, you’re not taking money out of your 401(k); you’re just balancing new contributions versus debt payoff.
• Use Other Assets or Windfalls: Before dipping into retirement savings, consider other assets or windfalls. For example, if you have a taxable investment account or a healthy emergency fund, those might be better sources to eliminate student debt than a 401(k). Or if you’re expecting a bonus at work, tax refund, inheritance, or other cash influx, use that for the loans. Some people even downsize a car or sell unused valuables to drum up funds, which is far less costly than tapping a 401(k).
• Seek Employer Assistance Programs: Besides the new matching law we mentioned, some employers offer direct student loan assistance as a benefit (e.g. contributing $100/month toward employees’ loans). It’s worth checking if your employer or prospective employers have such programs. Every bit helps, and it’s essentially “free” money for your loans – much better than using your own 401(k) money.
• Consult a Financial Advisor: If you’re truly torn, invest in a session with a fiduciary financial planner. They can run the numbers for your specific situation (taking into account your loan details, retirement balance, tax bracket, etc.) and project the outcomes. Sometimes seeing a personalized analysis makes the decision clear. And if the advisor can help you find alternatives or restructure your finances, you might avoid touching the 401(k) at all.
• Bankruptcy or Legal Solutions: This is a sensitive topic, but if you’re in extreme financial distress (many debts, not just student loans), talk to a bankruptcy attorney. Student loans are hard to discharge, but not impossible in cases of severe hardship (especially for private loans or in certain jurisdictions slowly loosening standards). There are also new government efforts to make bankruptcy for student loans a bit more accessible for those who truly can’t repay. While bankruptcy is a last resort and doesn’t guarantee relief from student debt, it’s a serious step that might be more appropriate than cannibalizing your retirement savings, depending on circumstances.

The key takeaway is that you have options. Student loans can be a burden, but there are usually multiple strategies to manage or reduce that burden without raiding your 401(k). In fact, using your 401(k) is often one of the costliest methods when all factors are considered. Exhaust those other avenues first; your future retired self will thank you.

Conclusion: Balance Today’s Needs with Tomorrow’s Security

Using a 401(k) to pay off student loans is a classic example of a short-term vs. long-term trade-off. In the short term, it can feel liberating to eliminate debt. In the long term, you risk compromising your retirement and financial security. For most people, the scales tip heavily in favor of keeping your 401(k) intact. After all, you can take out loans for college, but you can’t take out loans to fund your retirement – once those years and earnings are gone, they’re gone.

That said, personal finance is personal. It’s about finding the right balance for your life. If you’re drowning in debt and out of alternatives, your retirement account might seem like a lifeline – just be fully aware of the consequences we’ve discussed. Make sure it truly is the last resort after exploring every other possibility. And if you do choose to tap your 401(k), try to minimize the damage (for example, by only taking what you need, or using a loan instead of a withdrawal, or waiting until you’re old enough to avoid penalties).

In a perfect world, you’ll find a way to tackle your student loans while your 401(k) continues to grow for the future. Millions of Americans are in the same boat, balancing debt payoff with saving for retirement. The good news is, with careful planning and use of available programs, you can often manage both. Becoming debt-free is important, but so is being able to retire comfortably one day. Strive for a solution that leaves your debt behind and keeps your golden years golden.

FAQ: 401(k) and Student Loan Questions

Q: Can I withdraw from my 401(k) to pay student loans without paying the 10% penalty?
A: Not unless you’re over age 59½ (or meet a rare exception like total disability). An early 401(k) withdrawal will incur the 10% IRS penalty plus income taxes.

Q: Is it ever a good idea to use retirement savings for student debt?
A: Only in rare cases. For example, if you’re older and financially secure, or facing extremely high-interest debt with no alternatives. Even then, it’s wise to get professional advice first.

Q: What about taking a 401(k) loan to pay off my student loans?
A: A 401(k) loan lets you avoid taxes and penalties, as long as you repay it (usually within 5 years). If you fail to repay or leave your job, it becomes a taxable withdrawal with penalties.

Q: How will a 401(k) withdrawal affect my taxes?
A: It counts as taxable income. You’ll owe regular income tax on it (and a 10% penalty if you’re under 59½). A large withdrawal could even push you into a higher tax bracket that year.

Q: Do student loan payments qualify for any penalty-free retirement withdrawals?
A: No. Paying off a student loan isn’t an allowed exception to the penalty. (Even IRAs only waive the penalty for new education expenses, not for repaying old student loans.)

Q: Should I stop contributing to my 401(k) while I focus on student loans?
A: Not entirely. Always try to contribute enough to get any employer match (that’s free money). You can temporarily reduce extra contributions to direct more cash to loans, but resume them as soon as possible.

Q: What’s the new 401(k) student loan match I’ve heard about?
A: It’s a new program (from 2024) where employers can contribute to your 401(k) match when you make student loan payments. Essentially, you keep building retirement savings through the match while you pay off your loans.