For many adults in the United States, student loan payments and retirement planning are two financial responsibilities that often feel at odds. With more than 43 million people carrying student loan balances—and many still paying them down well into midlife—it’s no wonder long-term savings sometimes take a back seat.

At the same time, surveys continue to show that Americans across income levels feel behind on retirement preparations. This is especially true for high-net-worth (HNW) earners, mid-career professionals, and families juggling multiple financial priorities. With Financial Aid Awareness Month taking place this February, it’s the perfect moment to look at how these goals can work together rather than compete.

Whether you're dealing with Parent PLUS loans, managing your own student debt, or helping support a child through school, here are key insights to help you stay on track with retirement while keeping loan repayment moving forward.

Take Advantage of Employer Benefits Under the SECURE 2.0 Act

A major opportunity created by the SECURE 2.0 Act is the option for employers to match student loan payments with retirement contributions. If your company offers this benefit, every qualifying loan payment you make can trigger a matching deposit into your 401(k) or similar plan—even if you aren’t personally contributing to your retirement account at that moment.

This can be an incredibly powerful tool. It allows borrowers to continue paying down debt while still building retirement savings behind the scenes. It also gives your retirement account more time to grow through compound interest. For early- and mid-career professionals hoping to reduce their debt load without pausing savings, this benefit can help you do both.

To see if you’re eligible, reach out to your HR department or retirement plan administrator. They can confirm whether your employer participates and explain how to enroll.

Be Strategic When Making Extra Loan Payments

Making additional payments toward your student loans is one of the most effective ways to eliminate debt faster—but only if those payments are applied correctly.

Some loan servicers automatically use extra payments to “pay ahead” on future monthly bills instead of lowering the loan’s principal balance. While that might look like progress, it doesn’t actually reduce the interest you’ll accrue over the life of the loan.

The best way to accelerate repayment is to request in writing that any additional payments go straight toward reducing the principal. This simple step can significantly shorten your repayment timeline and cut the total interest you’ll pay.

If you’re unsure how your payments are being allocated, call your servicer for clarification and keep documentation of any instructions you provide.

Use Pre-Tax Retirement Contributions to Lower Monthly Payments

If you’re enrolled in an income-driven repayment (IDR) plan, contributing to a pre-tax retirement account—like a traditional 401(k), 403(b), or SIMPLE IRA—can reduce your monthly loan payment. Because IDR plans calculate payments based on your adjusted gross income (AGI), lowering your AGI through retirement savings results in a smaller required payment.

This creates a valuable dual advantage. You’re building tax-deferred savings for the future while decreasing what you owe each month right now. For borrowers pursuing Public Service Loan Forgiveness (PSLF) or other long-term forgiveness options, reducing your AGI can also increase the amount ultimately forgiven.

For wealth advisors, RIAs, HNW households, and anyone balancing multiple priorities, this strategy can be an especially effective lever in comprehensive financial planning.

Consider How Long-Term Forgiveness Fits Into Your Strategy

Many borrowers qualify for forgiveness programs that span 10 to 25 years. If you’re on track for one of these programs, it’s worth evaluating whether aggressively paying off your loans is the best financial choice.

While rapid repayment may feel rewarding, it can reduce the potential benefits of forgiveness and leave fewer resources available for retirement contributions. Instead, increasing retirement savings—especially in pre-tax accounts—could lower your AGI, reduce your monthly payments, and potentially increase the total forgiven amount.

Meanwhile, your retirement accounts continue compounding, helping you maintain long-term financial stability. Stepping back to view your entire financial landscape can reveal opportunities to optimize both your debt repayment plan and your retirement savings strategy.

Smart Planning Makes It Possible to Tackle Both Goals

Paying off student loans and saving for retirement don’t have to be mutually exclusive. By choosing strategies aligned with your income, tax situation, and long-term priorities, you can make steady progress on both fronts.

Some steps to consider include:

• Confirming whether your employer offers student loan 401(k) matching under the SECURE 2.0 Act
• Ensuring any extra loan payments are directed toward the principal balance
• Increasing pre-tax retirement contributions if you're on an IDR plan
• Reviewing whether you qualify for federal loan forgiveness programs

If your financial situation includes multiple goals, variable income, or HNW considerations, working with a financial advisor can be especially valuable. A professional can help you understand the tax impact of each strategy, evaluate trade-offs, and craft a plan tailored to your needs.

The Bottom Line: You Can Balance Debt and Retirement Savings

It’s a common misconception that you must pick between paying down student loans and saving for retirement. In reality, thoughtful planning—and newly available tools like the SECURE 2.0 Act—make it possible to address both priorities.

Financial Aid Awareness Month reminds us that financial literacy is not just for students. It’s an ongoing resource for anyone managing debt and planning for long-term security. If you're navigating the challenges of student loans while building for retirement, now is a great time to reassess your approach and strengthen your strategy.

If you'd like help reviewing your numbers or mapping out next steps, reach out today. A personalized plan can help you lighten your loan burden, grow your retirement savings, and feel more confident about the path ahead.