Debt Free: A 401(k)-Style Matching Program for Debt Repayment

Many companies have a 401(k) matching program to help employees save for retirement, but what about student loans?


Although SCW has an 401(k) program to help employees save for retirement (we follow the 401k Safe Harbor Program guidelines), we came to realize this this wasn't enough and didn't serve the needs of many employees. Many of our employees, were walking in with debt, whether from student loans, credit cards, or other sources that was concerning enough to priority putting money into paying them off rather than paying into a retirement fund.

Stocks average about 8% return. Loans often have more than 10% interest rates. Anyone who has loans, especially private ones, should pay those down before contributing to a retirement plan.

So, in 2016, we launched our Debt Repayment Matching program, which matches dollar-for-dollar payments to employees financial institution for up to 4% of an employee's income.

The debt repayment program is only open to employees who are not currently gaining contributions from the 401k matching program.

In order to encourage a debt-free lifestyle with our staff, the debt-free program is only availible on debt that existed prior to being hired.

Any debt can be requested to be included, but the organization places a strong emphasis on paying off student loans