Student Loan Matching: A Retirement Benefit That Speaks Directly to Associates

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For many law firms, retirement benefits have long been viewed as a cornerstone of total compensation. Yet for associates, traditional retirement plan features often feel less valuable due to the burden of student loan debt. Associates frequently face competing priorities: paying down loans or saving for retirement.

The Reality: Student Debt Among Law Graduates

Data confirms that student loan debt is the norm, not the exception, for law school graduates. According to a 2024 survey by the American Bar Association’s Young Lawyers Division, 85% of past law school students have borrowed money to finance their legal or prior education. And survey respondents carry a median amount of $112,500 in law school debt.  

This debt load has meaningful implications for how associates make financial decisions early in their careers. It is not simply a financial statistic -- it directly shapes behavior, participation in benefits, and long-term wealth accumulation.

Why This Matters for Associates’ Financial Wellbeing

With six-figure debt burdens, associates often prioritize loan repayment over retirement plan contributions. As a result:

• Retirement savings are frequently delayed
• Employer matching contributions go unused
• Early compounding opportunities are lost

This creates a gap between the benefits that firms offer and what their associates can use. The SECURE Act of 2022 offered a solution to help ease the gap by giving firms the opportunity to make retirement plan matching contributions based on employees’ qualified student loan payments.

Instead of requiring employees to contribute to a 401(k) to receive a match, employers can treat student loan payments as eligible contributions for matching purposes and deposit funds directly into the employee’s retirement account. This optional provision offers several positive benefits for associates:

• Eliminates the need to choose between loan repayment and retirement savings
• Allows associates to receive employer matching contributions while paying down debt
• Helps capture early-career investment growth
• Aligns benefits with the real financial challenges of early-career attorneys

How a Student Loan Match Works in Practice

An example: Second-Year Associate

Salary: $120,000
Student loan payment: $800 per month ($9,600 annually)
Firm match formula: 100% of the first 5% of compensation (i.e., $6,000 per year)

Without student loan match:

• Must contribute $6,000 to receive full match
• Many associates cannot, resulting in missed employer contributions

With student loan match:

• Loan payments count toward match
• Firm contributes up to $6,000 into retirement account

Result: The associate reduces debt and builds retirement savings simultaneously, without increasing out-of-pocket costs.

Strategic Value for Law Firms

Offering a student loan match delivers meaningful benefits beyond financial wellness:

• Differentiates the firm in recruiting
• Improves engagement with retirement plans
• Supports retention for early-career attorneys
• Demonstrates alignment with associate needs.

We Can Help

Student loan matching represents a meaningful evolution in retirement benefits. By aligning plan design with the financial realities of associates, law firms can deliver greater value, increase participation, and support long-term financial success from the earliest stages of an employee’s career. The ABA Retirement Funds Program can help you make this benefit available at your firm. Contact us today to learn more.