- Employees with student debt are twice as likely to also have medical debt and are nearly 50% more stressed about paying for healthcare
- Fidelity’s Student Debt Program helps employees manage their debt and improve their overall financial wellbeing
- Participants receiving employer match from their student debt repayment are on track to have an additional $200,000 in savings at retirement
BOSTON, February 4, 2026 – According to recent Fidelity Investments research[1], many student loan borrowers are facing high levels of stress and delaying major life milestones due to their student debt. The 2026 State of Student Debt study finds nearly one third (32%) of those currently paying off student loans have delayed purchasing a home due to their debt, and the percentage is even higher among Gen Z and Millennial borrowers – 37% and 36%, respectively.
“The burden of student debt takes not only a financial toll on borrowers, but an emotional one as well,” said Jesse Moore, head of student debt at Fidelity Investments. “Across the tens of thousands of U.S. employers Fidelity works with, we’re seeing many borrowers forced to choose between paying down their debt and saving for future milestones. With more than half of borrowers still struggling to pay back their loans[2], this is a critical time for employers to consider benefit solutions that help their workforce achieve greater financial wellness.”
According to the Fidelity research, 41% of borrowers lose sleep or feel anxious about their finances at least weekly, and borrowers are more likely to report an overall negative relationship with their finances. When asked to describe their relationship with money, 34% of borrowers use the word “stressful,” and two thirds (67%) of borrowers feel overwhelmed when it comes to their personal finances.
The findings of the report align with Fidelity participant data as well. Internal Fidelity data reveals average retirement balances among employees over the age of 50 are 30% lower for those currently possessing student debt, and 20% lower for those between the ages of 18 and 49.[3] Borrowers also are less likely to feel confident they will have enough saved to support themselves through retirement and feel more uncertain about how much they need to save for retirement. Beyond the financial impact, student debt can impact borrowers’ physical health as well. According to Fidelity data, employees with student debt are twice as likely to also have medical debt, and they’re nearly 50% more stressed about paying for healthcare compared to those without student loans. [4]
Employers Offer Support Through Fidelity’s Student Debt Program
Fidelity research shows offering student debt assistance can boost employee retention as well as be a powerful recruiting tool for those still paying off student loans. According to the report, nearly half (45%) of borrowers would be more likely to stay with their employer longer if they offered a benefit to help them pay down their loans; that percentage is even higher among Gen Z and Millennials (52% and 47%, respectively).
Fidelity’s Student Debt Program offers an end-to-end solution to help employees pay down their debt, save for retirement, and build their overall financial wellness:
- With Student Debt Direct, employers can make payments directly to employees’ student loan service providers, saving employees precious time and money. Employers offering Fidelity’s Student Debt Direct benefit have seen a 26% reduction in turnover.[5] Collectively, they’ve helped employees pay down over $700 million in principal and interest, cutting 3–4 years off repayment timelines.[6]
- Fidelity’s Student Debt Retirement product allows employees to earn employer contributions to their retirement accounts by making payments toward their loans. More than 200 companies have implemented the benefit to date, representing nearly two million eligible employees. Since the launch of the offering in early 2024, those that received a benefit received an average of $1,900 in employer contributions based on their student loan payments.[7] This can make a meaningful impact on retirement savings and readiness. The average student loan borrower takes more than 10 years to repay their loans – if that individual received an employer contribution through the program for 10 years, that $1,900 annual contribution could grow to nearly $200,000 at retirement age.[8]
In addition to helping workplace clients and their employees strengthen financial wellbeing, Fidelity was among the first employers to introduce a student debt benefit for its own associates in 2016. Today, Fidelity offers eligible associates up to $15,000 towards student loans, in addition to a comprehensive suite of benefits to help them at all phases of their financial lives.
Fidelity customers can use the Student Debt Resource Hub to explore options to reduce loan payments, pay off debt faster, or reduce lifetime costs. The Hub allows users to model various repayment scenarios to identify the best fit for their unique financial situation. Customers who are eligible for Fidelity's Student Debt Direct or Student Debt Retirement products through their employer can also enroll through the Hub. For those still in the planning stage, Fidelity’s College Savings Calculator can provide a gut check on whether they are on track to meet their college savings goals.
Learn more about how employers are using student loan benefits to reduce financial stress and boost long-term savings here.
Fidelity Investments and Fidelity are registered service marks of FMR LLC.
The Student Debt Contribution Benefit is not a product or service of Fidelity Brokerage Services.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
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[1] The study presents the findings of a national online survey, consisting of 747 U.S. adults, 18 years of age and older, who are currently paying back student loans. Generations as defined by Pew Research: Baby Boomers are individuals born between 1946 – 1964, Gen X are individuals born between 1965-1980, Millennials include individuals born between 1981 – 1996 and Gen Z includes individuals born between 1997 – 2012. Interviewing for this CARAVAN® Survey was conducted October 1-8, 2025 by Big Village, which is not affiliated with Fidelity Investments.
[2] https://www.aei.org/education/less-than-half-of-student-borrowers-are-paying-their-loans/
[3] Data for student debt holders derived from nearly 12,000 Fidelity plan participants enrolled in Fidelity’s student debt benefits (Student Debt Retirement and Student Debt Direct), August 2025. This is compared to: Fidelity Investments Q2 2025 401(k) and 403(b) data based on 25,600 corporate defined contribution plans (24.6 million participants) and 10,677 tax-exempt plans (9.01 million plan participants) as of June 30, 2025.
[4] Fidelity Total Wellbeing Study 2022. Online survey of 5,366 active Fidelity 401(k) and 403(b) participants in the US, September 2017-October 2022.
[5] Fidelity analysis of over 200 Student Debt Direct clients, showed that employees taking advantage of the program had a turnover rate 26% lower than those who were eligible but not enrolled. Based off an analysis of all eligible employees across over 200 clients within the first two years of their employment. The turnover results were calculated between June 2023 – November 2023.
[6] Fidelity internal data from August 2025.
[7] Fidelity’s Student Debt Retirement benefit as of 2024.
[8] Fidelity record kept data, as of Q1 ’25. The standard student loan repayment period is 10 years, which means participating in this benefit can result in multiple years' worth of contributions based on student loan payments. For example, assuming a 7% annual growth rate, an employee who receives this benefit over 10 years could accumulate $199,200 in retirement savings.
