Administrative Services

What student loan forgiveness could mean for your retirement and HSA

President Biden announced plans to provide federal student loan relief to millions of Americans.


Based on eligibility, up to $20,000 in student loan forgiveness is available to those impacted. Applications for the program will be available starting in Q4 of 2022.

It’s too early to tell what this will mean for the economy and consumer habits. But based on one survey, many Americans may look to rethink their retirement planning. In a 2021 Social Policy Institute survey, nearly one-quarter of Americans polled said they would save more for retirement if $10,000 of student loan debt was forgiven. If you have a health savings account (HSA), you can lean on your HSA to do just that. When student loan forgiveness does take effect, this is what that could mean for HSAs.

Are you able to contribute more to your HSA?

There are still a few months left in 2022, and remember that you can change your HSA contribution amount at any time during the plan year. HSAs are a smart savings and retirement tool because all funds carry over from year to year. Check with your employer if you would like to update your HSA contribution amounts on a pre-tax basis.

Do you have any other medical spending needs?

Have you been putting off seeing a dentist? Or is it about time to schedule an eye appointment, or buy some new glasses? If you do receive student loan relief, consider addressing some of your medical, dental, or vision needs that you may have been putting off. Check out our interactive eligible expense list to see if the expense you’re considering is eligible for your HSA funds.

Are you investing HSA funds?

An HSA’s investment potential is another reason why many Americans use these accounts as part of their retirement strategy. In 2021, HSA investment assets eclipsed $34 billion nationally, which was a 45% year-over-year increase. And it might surprise you to learn that an HSA has retirement-planning perks that a 401(k) or IRA don’t have.