Walgreens launches student loan 401(k) match program
With many of its pharmacy associates facing educational debt, Walgreens unveiled a new benefit designed to allow employees to pay down their student loan debt and save for retirement.
The new Walgreens Student Loan 401(k) Match Program will allow employees to qualify for company 401(k) match contributions as they pay down their student loans, beginning in January 2025.
The program treats enrolled team member student loan payments like contributions to the Walgreens retirement savings plan 401(k). The pharmacy retailer and health care provider will match eligible student loan payments up to 4% of eligible pay. Employees are generally eligible for company matching contributions after one year plus 1,000 hours of service.
Walgreens is launching the new program as roughly 30% of its associates are facing financial debt from higher education — including more than half of its pharmacy team members. According to the American Association of Colleges of Pharmacy, pharmacists have an average student loan debt of $170,000.
“We understand the burden student loan debt places on many of our team members, and this program empowers us to make a lasting impact on their financial well-being,” said Elizabeth Burger, executive VP and chief human resources Officer, Walgreens Boots Alliance. “With this new benefit, our team members are no longer faced with the difficult choice between managing their student loan debt and investing in a secure financial future — now they can confidently do both.”
Walgreens also recently enhanced its Pharmacy Educational Assistance Program, which provides tuition assistance each year when eligible team members are enrolled in a professional pharmacy program while working for Walgreens as a pharmacy intern. For all years combined, the awards can be as much as $40,000 in total.
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In exchange for each award, pharmacy students are required to sign an agreement that includes a one-year work commitment as a registered pharmacist at Walgreens. The total work commitment period is the total number of years for which a pharmacy student receives an award under this program.
