I agree with above: I'm reading it as student loan payments count toward the matched contribution plan for retirement that your residency offers.
A very simplified example: you have $600/month to invest. Your residency will match up to $500/month put in a qualified retirement plan. You also have loans. How should you invest?
You should WANT to put $500 toward retirement to get the full matched contribution, but you might not be able to, because of loan payments. So in reality, you might have to put $300 toward each, only getting $300 matched (i.e. per month you pay loans down $300 and put $300+$300 matched toward retirement = $900).
I'm reading this as, in that situation, you can put all $600 toward loan payments, and residencies can count the first $500 of that as a contribution toward retirement eligible for matching. So instead of the above, you pay $600 toward loans and would get $0 + $500 matched towards retirement = $1100.
These numbers aren't accurate and don't factor in other things (e.g. taxes), but tl;dr this will likely look like $100-$200/month more toward loans for affected residents.