Paidly Inc., a financial technology company revolutionizing the approach to student loan assistance, announces the successful closing of its Series A funding round with S30Build, LLC.
The investment from S30Build, LLC will strengthen Paidly Inc.’s mission to alleviate the burden of student loan debt and provide groundbreaking HR benefit solutions to employers. The funding will enable Paidly to enhance its platform and expand its reach, delivering even greater value to both employers and employees. The partnership underscores Paidly’s ability to make a meaningful impact when addressing the challenges posed by student loan debt.
Commenting on the investment, Paidly CEO John Scully stated, “We are delighted to welcome S30Build, LLC as our partner in this exciting phase of Paidly’s journey. This funding equips us to further support employers and employees as they navigate the complexities of student loan debt, resulting in improved financial wellness and increased job satisfaction. We are committed to driving positive change and the investment from S30Build will help us achieve this goal.”
According to statistics, Americans are carrying and struggling to pay back more than $1.7 Trillion in student loan debt, including federal and private loans. Meanwhile, a survey by WGU Labs showed that 44% of young workers stress about how they are going to pay back all their student loans while 86% of employees indicated they would commit to their employer for five years if they received help paying off student loans, according to American Student Assistance survey findings.
In 2020, the Federal government passed the Coronavirus Aid, Relief and Economic Security (CARES) Act. The Act allows employers to contribute up to $5,250 tax-free to student loans each year, meaning the money paid is considered tax-exempt for both the employee and the employer.
Paidly’s cloud-based platform provides employers a streamlined way to establish and manage Student Loan Benefit plans as a way to support employees as they pay off their student loans, and address key workforce needs within their business. With an emphasis on improving employee quality of life, Paidly seeks to empower individuals to reach major life milestones – such as buying a home, starting a family, and saving for retirement – all while efficiently managing their student loan payments.
John Andrews, S30Build Managing Partner and Chief Investment Officer, stated, “Student loan debt in America isn’t just an economic concern for borrowers. It is, by extension, a recruiting, retention, and productivity concern for employers. The Paidly platform represents a unique, forward-looking approach to alleviating student loan debt and reducing financial stress caused by student loans and is already making an impact on the workforce.”
Successful completion of the Series A funding round marks a significant milestone for Paidly Inc., reinforcing the company’s commitment to student debt relief and the financial well-being of employees across the nation.