The exploitative nature of the student loan system is highlighted through the story of a public school teacher burdened by debt despite qualifying for loan forgiveness.
The success of a GoFundMe campaign to help pay off a teacher's student loans demonstrates the willingness of people to come together and support someone in need.
Deep dives
The impact of student loan debt
Katy Highland, a public school teacher burdened by student loan debt, symbolizes the struggle many face. Despite qualifying for loan forgiveness, her student loan servicer kept her in debt to make money off interest. This highlights the exploitative nature of the student loan system.
The power of collective action
A GoFundMe campaign was started to help pay off Katy's student loans. Through the support of listeners and strangers worldwide, the campaign successfully raised $50,000 in less than three months. The overwhelming response demonstrated the willingness to come together and help someone in need.
The cycle of debt and financial stress
Katy's financial stress not only stemmed from student loans but also credit card debt. Despite having a good credit score, she and her husband faced high interest rates and struggled to manage their finances. The stress had psychological and physical consequences, leading to anxiety and dental problems.
The role of financial coaching
Jason Brown, the founder of Tally, recognized the need for financial coaching to help people break free from debt and regain financial stability. By offering nudges, automatic payments, and rewards for saving, the app aims to empower individuals to make informed financial decisions and overcome their financial challenges.
Credit card companies are making billions of dollars off of people who don’t understand the rules of the money game. Can a good coach help level the playing field?