I would have loved an internship like that! I'm afraid that some would accuse you of oppressing your friend by exploiting his labor at the unlivable wage of $12/hr though :)
You should flesh out your HN profile a bit; who knows who might be able to help you out. (Specifically, the email field is not publicly visible so no one can contact you right now even if you entered something there.)
Point to your GitHub or some other demonstration that you deserve better!
In many cities for many of them, with the hours they have to work, the split shifts they are forced into, and the wage theft management is guilty of, yes, many of them are essentially zombies.
Nope, they just accrue debt because there's no other way to live in this society at that pay scale unless someone has very convenient living conditions (such as not needing a car).
It also depends where you live. Every day I pass a Wendy's in Redwood City with a big sign advertising a $10.15 starting pay (which is still only $1.15 over CA minimum wage).
... :(