What may cause the next financial crisis? Student debt. Most of us have some and get stuck paying it off for a long, long time.
Today’s guest is Joseph Gracia, CEO of Nickels, an Ann Arbor-based business focused on reducing borrowers’ student loan default rates. By being a trusted financial guide, Nickels helps them enter the working world and build up their credit profiles, rather than undermine their financial futures.
- 2:26 Power of Behavioral Science: How energy consumption reports led to Nickels.
- 5:38 For-Profit Business: 4 steps to successful Software as a Service (SaaS) scalability.
- 8:56 Student Debt Data: 45 million owe and in default of loans crushes credit score.
- 10:35 Correlation/Causation: Less you owe, more likely you’ll default on your debt.
- 11:45 Pitfalls: Nickels is an automated, digital tool that addresses borrowers’ behavior.
- 13:13 Default Options: Different countries offer different opt-in and opt-out programs.
- 16:39 Choice Overload: Suspicious activity of who and why do you owe money?
- 17:22 Identify or Ignore? Six-month grace period, fresh start dates, and student loans.
- 19:30 Parents Play Role: Whether they initiate student debt or not, who pays the price?
- 23:00 More Debt, No Problem: Decisions that lead to bigger problems, lack of support.
- 25:33 Why change name from Principal Interest to Nickels? Trademark protection.
- 28:15 Educational Ideas and Opportunities: What do you want to do next?
- 30:43 Guidelines/Guardrails: Checklist for vetting behavioral passion to build business.
- 33:10 Move to Michigan: Entrepreneur-in-residence experience and midwest kindness.
- 36:36 Raising Money: Don’t start too early, but validate and do more to gain traction.
- 38:15 Value of Education: Habits for dealing with purchase and ROI of student debt.
- 41:57 Debt Hacks: As soon as first loan is dispersed, build relationship with servicer.
- 46:39 Financial Literacy: Offer specific, timely, personalized recommended actions.
- 47:48 Success: Changed from higher titles/salaries to expand growth and development.
- 49:45 Doubt: Unable to convince super smart, successful person what will work in future.
- 53:12 Lasting Lesson from Failure: Right or wrong, survive rejection of being told ‘no.’
- 55:00 Easiest/Hardest Parts: Fundraising was fun, but naming business was frustrating.
Links and Resources:
Call us! 734.219.3827