Sootchy is an app on a mission to eradicate student loan debt. Keep reading to learn more about all the ways we're working toward debt-free education for all!
The Sootchy app is on a mission to eradicate student loan debt. We do this through the power of 529 College Savings Accounts. These accounts are designed to help individuals save for college by allowing them to grow without accruing taxes. Additionally many states offer tax credits or deductions for funds that are contributed to the accounts. In the past, these accounts were opened with stacks of forms to complete, and people were left to choose from many investment plans without any support. But not any more.
The total student loan debt in the US is more than 1.6 trillion dollars. And while that debt is spread over 44.7 million Americans, its impact spreads much further into families across the country - to their parents, husbands, wives, partners and oftentimes, their children. See what Sootchy is doing to solve this crisis in the video below.
Recent studies show less than 30% of Americans know what a 529 Plan is, and only 13% use them because they have traditionally been difficult to set up and manage. And that's unfortunate because they're really a powerhouse in the college savings game.
A little backstory: Congress established 529 Plans in 1996 to allow certain types of college savings accounts to accrue wealth without paying taxes on the growth. Currently, 30 states have incentivized this even more by allowing income tax deductions on many of the contributions. What's even better is that 529 Plans cover a variety of education options including 4-year universities, 2-year colleges, trade schools and K-12 private schools (tuition only).
The Sootchy app provides students and families with an alternative to student loans and debt by making it easy to open up a 529 Account and gain contributions from family and friends. In a few minutes, you can set your children up for success by starting an account with as little as $5.
Our technology allows everyone to make better decisions and save for their children’s educational future. By answering a series of simple questions, Sootchy will recommend an investment plan that fits your needs.
Sootchy’s social crowd-funding technology allows you to invite family and friends to contribute to your educational savings. If five family members contributed $20 per month for your child’s birthday, holidays or other occasions, by the time they graduate high school you could possibly have almost $40,000 in the 529 Account.
In March of 2021, Sootchy began a partnership with Lighthouse Academies; a national nonprofit network of charter schools encompassing more than 6,000 students and families, in addition to 605 teachers, principals, and staff members. In line with Sootchy’s mission to eradicate student loan debt, Lighthouse goes above and beyond to pave the way to a college education for students who would otherwise face limited opportunities due to no fault of their own.
This partnership increases the potential to affect future generations of underserved students by helping them achieve higher education with lower debt. It’s the first step in creating debt-free education for all!
At 21 years old David Adefeso boarded an airplane to New York. He had $250 in cash, no friends and no job. That money didn’t last, and at one point, he found himself experiencing homelessness. But he worked hard (sometimes having three jobs), and earned his way into Harvard’s MBA program. Unfortunately, after graduating, David got the shock that millions of Americans know all-too-well; $125,800 in student loan debt.
He was only able to pay that debt off after working tenaciously to obtain a Wall Street Investment banking job. There he advised some of the world’s largest companies on multi-billion dollar mergers, acquisitions and financing. But the struggle to pay off his student loan prior to that is something he would never forget. In fact, it’s what drove him to create the Sootchy app; helping other people avoid the burden of student loans.
"Education has the ability to be a great equalizer and eliminate the wealth gap that exists in our country - but only if it's accessible.” - David Adefeso, Sootchy Founder & CEO