The Clark Howard Podcast
02.16.24 Clark Answers His Critics on Clark Stinks / A New 401(K) Benefit Tied To Student Loan Repayment
Feb 16, 2024
Clark answers his critics on Clark Stinks and discusses the new benefit of receiving a 401(k) match for student loan repayment. Other topics include finding cheap flights, the best free workout apps, and teaching kids about money.
31:03
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Quick takeaways
- Employers are offering a new benefit that allows employees with student loans to receive an employer match by redirecting 401(k) contributions towards their debt.
- The U.S. Department of Education's Save program offers a more favorable payment plan for individuals with student loans, helping them regain control of their debt and pay it off on a manageable and beneficial repayment plan.
Deep dives
Employer matching for student loans in 401(k) plans
Employers are rapidly adopting a new option in 401(k) plans that allows employees with federal student loans to receive an employer match by redirecting the money that would have gone into the 401(k) towards their student loan debt. This provides an opportunity for individuals burdened with student loans to receive retirement benefits while tackling their debt. Although it's not as advantageous as traditional 401(k) contributions, it still allows individuals to contribute to retirement savings while making progress towards reducing their student loan balance.
