WASHINGTON, D.C. -- Oregon Senator Ron Wyden has introduced a bill to give college graduates the ability to save for retirement, while still having money to pay off student loans.
Under the Retirement Parity for Student Loans Act, recent graduates who can't afford to save above their student loan repayments would no longer have to give up their employer match.
“Millions of new college grads are buried under tens of thousands of dollars in student loan debt. Paying down student loans shouldn’t mean employees lose out on the opportunity to save for the future,” Wyden said.
The Retirement Parity for Student Loans Act would allow employers to make matching contributions into a 401(k) retirement plan, while their employees continue to pay off student loans.
The Senate Finance Committee, of which Wyden is a member, decided to introduce the act to prepare for next year.
It’s expected that broader conversations on how to improve retirement policies will be debated during the 116th Congress.