MacKenzie Scott, a renowned philanthropist and one of the world's wealthiest women, has been making headlines for her generous and unconventional grantmaking practices. But her journey began with a simple act of kindness from her college roommate, Jeannie Tarkenton. When Scott was facing financial hardship during her sophomore year at Princeton, Tarkenton stepped in and secured a loan of $1,000 from her father, preventing a potential dropout. This act of friendship and support has now come full circle.
Fast forward to the present, and Scott's net worth has skyrocketed to an estimated $34 billion, thanks to her shares in Amazon acquired during her divorce from Jeff Bezos. With her immense wealth, Scott has become a prominent figure in philanthropy, donating over $19 billion to various causes. In a recent essay, she highlighted the impact of Tarkenton's generosity, which inspired her to take action and support economically disadvantaged students.
Tarkenton's creation of Funding U, a lending company offering last-gap, merit-based loans to low-income students, is a testament to her mission. Scott's support for Funding U showcases her commitment to addressing the rising cost of college and providing opportunities for students who might otherwise be pushed into financial hardship. This investment aligns with her focus on equity, higher education, and economic security.
What sets Funding U apart is its innovative approach to lending. By considering factors like student transcripts and internship experiences, the company's algorithm predicts the likelihood of students completing college, securing jobs, and repaying loans. This method is more fair and predictive than traditional credit history-based eligibility criteria.
Scott's involvement in Funding U goes beyond a simple investment. She provides 'junior debt' to reduce the risk for larger investments from banks like Goldman Sachs. This strategy allows her to support the company while also ensuring a return on her investment. Tarkenton's unique approach to philanthropy, combining market solutions with capital from caring individuals, is a model she believes more philanthropists should embrace.
The impact of Scott's support for Funding U extends beyond the immediate financial assistance to students. It serves as a reminder of the power of kindness and generosity, and how a single act of support can have a lasting impact. As Scott continues to make waves in the philanthropic world, her actions inspire a new generation of donors to think creatively and invest in solutions that create a greater good.
