MacKenzie Scott once needed her college roommate's help with a $1,000 loan so she could stay at Princeton University; years later, Jeff Bezos' ex-wife is backing her student-loan company

Scott reportedly got the loan after her college roommate, Jeannie Tarkenton, found her crying over the possibility of leaving Princeton during her sophomore year. Being a good roommate, Tarkenton asked her father lend Scott some money. Years later...

AP

MacKenzie Scott, who once needed a $1,000 loan to stay at Princeton University, is now backing her college roommate’s company.

MacKenzie Scott is the former wife of Amazon founder Jeff Bezos. But once, a $1,000 loan helped her stay at Princeton University. This incident happened when she was struggling to pay for college. But, the story did not end here. Decades later, Scott went on to support a business started by the same roommate whose family helped her in difficult times.

Scott reportedly got the loan after her college roommate, Jeannie Tarkenton, found her crying over the possibility of leaving Princeton during her sophomore year. Being a good roommate, Tarkenton asked her father lend Scott some money, according to an Associated Press report.

Years later, Tarkenton founded Funding U. This is a company that provides students loan to help people from lower-income backgrounds pay for college. Interestingly, Scott also supported this. She went on to invest in the business.


How a $1,000 loan changed everything?

Scott later revealed that the loan by her roommate stayed with her even after college and became wealthy. On many occasions she had mentioned about the incident how that money helped her in difficult times.

Tarkenton's reason to help Scott was different. She said that's what friends do for each other. She also recognised many students struggle with the same financial problems that had once put her roommate's education at risk.

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What does Funding U do?

Tarkenton founded the company to help students who were struggling with financial problems when it came to education. So, her company focused on students who show academic promise but have limited financial support.

The company had provided around $80 million in low-interest loans to around 8,000 students, according to Princeton Alumni Weekly.

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How is Scott supporting her?

Scott, according to the Associated Press, provides what is known as junior debt. It helps reduce the risk for other lenders investing in Funding U.
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This allows the company to combine money from socially minded investors with funding from banks. It helps Funding U expand its lending while giving Scott a financial investment that can eventually be repaid. Tarkenton has also stated that the company is a business, not a charity.

Scott has become one of the world's most prominent philanthropists. She donated billions of dollars to organisations working in areas such as education, social equality and economic opportunity.
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