The 48 million people who owe a collective $1.75 trillion in student loan debt were given some relief last year when President Joe Biden announced that the government would forgive up to $10,000 in federally held student loan debt — or $20,000 in Pell Grants — for people who earn less than $125,000 per year.
With the three-year pause on student loan payments scheduled to end this summer, borrowers will be looking for ways to reduce their payments and maximize their savings.
NYC-based fintech startup Candidly developed artificial intelligence technology that optimizes a borrower’s debt repayment strategy, identifies cost savings and enables employers to offer student loan contributions. Basically, the company embeds its technology anywhere a user works or banks to help them pay down their debt faster.
Candidly announced this week that it raised $20.5 million to scale its operations. The company, which was previously known as FutureFuel.io, finalized a $21.6 million Series A two years ago. This latest round, which was led by Altos Ventures, brings Candidly’s total funds raised to $46.3 million, according to Crunchbase.
“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,” Candidly founder and CEO Laurel Taylor said in a statement.
Candidly has developed a full suite of offerings to help companies take advantage of SECURE Act 2.0, which was signed into law in December. The legislation allows employers to match their employees’ student loan payments and emergency savings contributions with tax-advantaged retirement contributions.
Candidly has increased its revenue tenfold in the past year, according to the company. Over the past year, the company added Guild Education, Empower Financial, Lincoln Financial Group and Vanguard to its list of distribution partners. Candidly also works with UBS and Fiserv.
