This AI chatbot is helping employees pay off their student loans

Employees are desperate for guidance on paying off their crippling student loan debt. Could AI have the answer? 

The student loan debt in the United States has reached nearly $1.8 trillion, according to the U.S. Department of Education, with an average debt of $38,375 per borrower. In an effort to support employees on their repayment journey, financial wellness platform Candidly launched Cait, their conversational AI tool, to provide a more personalized financial assistance benefit.

"Cait was born from observation of demand," says Laurel Taylor, founder and CEO of Candidly. "The challenge with offering options like traditional coaching is availability. Sometimes employees are seeking help at 10:00 at night on a Thursday or at noon on a Saturday. We were missing this opportunity to serve and drive impact and outcomes in the hours that were the most convenient for the user, but it was difficult to scale that support using humans."  

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Unlike other chatbots on the market, Cait goes beyond answering "yes" or "no" questions or pointing employees back to organizations' FAQs. Cait is a completely conversational assistance agent, which means it can use the details employees share about their situation to analyze income-driven repayment options, suggest specific public service loan forgiveness programs it  deems most achievable, as well as give advice on consolidation opportunities and tax-free employer-sponsored benefits.

Cait can also leverage what it knows about existing legislation to help employees strategize their repayment options. For example, the chatbot can help employees navigate provisions within Secure 2.0, one of which allows employers to treat student loan payments like 401(k) contributions.

"When we think about chatbots, we think of them like a support ticket — the outcomes that are returned to the user are generally generic and basic," Taylor says. "Cait can provide an experience that is consistent with a 401(k) record keeper, a life insurance specialist or any other financial wellness provider." 

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Of course, like all new technology, chatbots need boundaries and guardrails. Despite being tested against the knowledge and experience from Candidly's in-house coaches, those coaches can intervene at any moment depending on the interaction an employee is having with the chatbot. Employees using Cait also have the option to request a live coach should they need more personalized help. 

Offering more solutions to help employees navigate their student loans is an important attraction and retention tool. With the right oversight in place, the potential gains far outweigh any challenges of implementing new technology. 

"Leaders fundamentally have to make a choice if they want to be proactive and lean into helping their employees through digital experience, or be reactive," Taylor says. "The days of sitting on the sidelines and waiting are over — we need to move from employee perks to protections."