Student debt and savings optimization platform Candidly has secured $20.5 million in a Series B round of funding.
Candidly partners with employers, retirement recordkeepers, and financial services companies to embed its technology within the partner’s own digital experience and enables users to pay down their student debt faster while saving for different needs like retirement or emergency funds. In 2022, Candidly added distribution partners including Guild, Empower, Lincoln Financial Group, and Vanguard, joining existing partners including UBS and Fiserv.
“Our Series B round of financing places us in a unique position of opportunity and responsibility, empowering the largest financial services companies in the world to engage and transform the financial wellness and retirement readiness of those who believe that education – past, present, and future – is part of their path to prosperity,” said Laurel Taylor, founder and CEO of Candidly.
“Our team at Altos shares Candidly’s vision to empower people to tackle student debt and build financial security,” said Anthony Lee, managing director at Altos Ventures, who led the funding .
New workplace benefits brought on by SECURE 2.0 allow employers to match employees’ student loan payments and emergency savings contributions with tax-advantaged retirement contributions. In anticipation of its passage, Candidly developed a full suite of SECURE Act 2.0 solutions offering integration and branding options, including its Public Service Loan Forgiveness tool.
The funding comes at a time when the realities of the student debt and savings crisis, alongside the rise of financial wellness, have never been more relevant. Just last week, the Supreme Court heard arguments on the legality behind President Biden’s student loan forgiveness plan.
Today, nearly 47 million borrowers owe a collective $1.8 trillion in student debt. If the Supreme Court blocks the plan from going into effect, federal student loan payments will commence in September after a three-year pause.
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