Why We Invested:
$1.7 Trillion in student loans is devastating multiple generations of Americans. Gift of College is on track to crush the student loan crisis with a variety of solutions that even large financial institutions can’t replicate.
Modern ecosystem to help Americans save and pay for education where they are:
- Benefits in the places they work
- Gifts and loyalty with the retailers and brands they shop
- In their wallets with financial products & rewards
GoC has a great business plan, major corporate and state agreements in place, and thought-leadership in the 529 space.
Their platform is in demand by major corporations and financial institutions. To win the talent war, corporations must begin offering this unique and valuable benefit.
We believe that GoC is well-positioned to generate positive impact and opportunity, particularly with women and underserved communities where student loan debt is concentrated.
Market Insights:
- According to SHRM, 11% of employers offer 529 plans with only 1% offering a match
- According to SHRM, only 9% of employers offer student loan repayment benefits
- According to the American Association of University Women, U.S. women owe the majority of the outstanding $1.7 trillion dollars in student loans – $929 billion.
- Black women carry about 20% more student debt than white women do. Researchers estimate that one year after graduation, white women owe $33,851 in undergraduate loans, on average, while Black women owe an average of $41,466.
Steamwork Ventures Value Add:
- Leveraging our team’s deep FinTech, university, retail, and corporate relationships
- Negotiating and pricing enterprise contracts