AI partnership takes aim at workers’ student debt

Workplace fintech and fiduciary retirement plan provider team up to help more plan sponsors and participants with student loan matching solutions.

Candidly, a provider of AI-enhanced student debt and savings optimization, has formed a strategic alliance with intellicents, a comprehensive financial services provider, aiming to alleviate the student loan burden for American workers.

This collaboration is poised to enhance intellicents’ mission of helping “the underserved” members of the American workforce organize their finances, from planning and funding education to managing student loans and accumulating savings.

With fiduciary retirement planning, wealth management, and financial consulting services, intellicents operates across several US states, catering to nearly 400 employers and overseeing around $6.25 billion in retirement and personal financial planning assets.

The partnership aims to drive financial wellness in the workplace as it opens up Candidly’s advanced debt solutions – which it provides to 401(k) and 403(b) record keepers, retirement plan advisors and other stakeholders in the group retirement space – to intellicents’ wide customer base.

The move comes at a critical time, with many borrowers struggling in the wake of the federal move to lift the moratorium on student loan payments last fall. An estimated 40 percent of borrowers missed their initial payment post-moratorium.

The impact of monthly student loan payments, averaging around $400, could ripple out for decades. In a study by Fidelity, seventy-nine percent of individuals with student loans said they have put off contributing to their retirement funds as they work to pay down that debt. On average, by the time they’re 30, these borrowers have half the retirement savings of their peers who didn’t borrow for education.

“The average American’s poor overall financial health was exposed during the Covid pandemic as they struggled with nonexistent budgeting skills, no emergency savings, and an enormous debt load,” said intellicents co-founder and CEO Brad Arends. “These issues plague every demographic, regardless of age, gender, race, and income.”

Following the resumed student loan payments, Candidly reported a surge in the use of its services, particularly in helping workers explore federal income-driven repayment and public service forgiveness plans. It says users who qualified for the newly introduced Save on A Valuable Education (SAVE) Plan have saved $453 on average on their payments.

In line with SECURE 2.0, the platform also helps employers match employees’ student loan payments with tax-advantaged retirement plan contributions.

Candidly also helps with the deployment of Section 127 benefits, which were expanded under the CARES Act, as it facilitates up to $5,250 in employers’ annual contributions to support their employees’ past, present, or future education expenses.

“It is an honor to partner with intellicents, bringing our innovative student debt, savings, and retirement savings solutions to the plan sponsors and participants we collectively serve,” said Candidly founder and CEO Laurel Taylor.