Candidly, a platform that helps employees reduce their student debt and increase their savings, surpassed $1 billion in projected dollar impact in 2023, according to its annual report.
The number represents the total amount of dollar impact Candidly users should receive as a result of actions taken on the platform. Users—most of whom have access to Candidly through their employer—can use the AI-powered platform to help tackle their student debt as well as plan and pay for college. The platform also facilitates employer-sponsored student loan repayment contributions.
According to Federal Student Aid, an office of the Department of Education, student loan debt in the United States is over $1.77 trillion. The burden has been top of mind for many in the last year especially, as federal student loan payments resumed after a more than three-year break. Last summer, the Supreme Court rejected the Biden-Harris Student Debt Relief Plan, which would have canceled up to $400 billion in student loans.
Candidly allows users to search and apply for federal repayment plans that can reduce their monthly payments. It takes users an average of eight minutes to apply for a new repayment plan, and qualifying users lower their payment by an average of $335 per month, according to Candidly’s annual report. Users can also use the platform to make extra payments toward their loan debt, saving an average of 23 months of repayment time and $8,304 in lifetime interest.
Candidly’s tax-advantaged student loan employer contributions increased in 2023. The company reports that it tripled the number of dollars sent to student debt via employer-sponsored student loan repayment contributions, which averaged $200 a month for employers. The program has big retention benefits: workers who received repayment contributions through Candidly said they were 76% less likely to leave their employer.
In 2023, the company also added a Student Loan Retirement Match option to its platform. As allowed by SECURE 2.0, this enables employers to match workers’ student loan payments with tax-advantaged retirement contributions, helping them make a dent in their student debt without falling behind on retirement savings.
Help with student debt is in high demand among employees and employers. Candidly said it saw a 226% increase in the number of student debt coaching sessions scheduled by workers in 2023, following the return of federal student loan repayments. Additionally, the company added hundreds of new employers to its platform in 2023, including Adidas, and is poised to serve 1 in 4 workers in America. It recently closed a $20.5 million round of Series B financing.
“It’s easy and secure, and the core platform features drive so much more impact for our employees than repayment contributions alone,” said Libby Culpepper, director of people operations at Guild, in the annual report. The company uses Candidly and has a 34% employee participation rate with a projected dollar impact of $7.1 million. “Candidly allows us to provide employees with more tools and more guidance, so we can offer meaningful support without having to have an in-house student loan expert on staff.”
SEE ALSO:
• Candidly Adds Emergency Savings Solution
• Tackling Student Loan Debt Relief Issues with Candidly’s Laurel Taylor
• Student Loan Payments Negatively Impact 401(k) Contribution Rates, Account Balances