Help me diagnose some car problems?

The car in question is a 2008 Subaru Outback, 4 cylinder. My old one in fact, that I sold to a neighbor.

Said neighbor knocked on the door saying that her heater hadn’t worked today, and when I pressed her a bit mentioned that yesterday when stuck in traffic for awhile, she started hearing belt squeal, which was new. She said it went away when she got out of traffic and started moving again.

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I went to look at the car and noticed a small trail of coolant on the pavement immediately. Popped the hood and the coolant cap was loose. Checked the overflow tank and it was below the “low” line. Also checked the radiator and overflow tank for damage, but they both looked fine. All hoses were on tight and the rubber was supple.

I Filled the overflow tank up to “full”, tightened the cap and started her up, after 5 minutes didn’t see any leakage. Heater still wouldn’t work though, it just blew cold air.

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I told my neighbor to check the coolant level in the morning and if it’s good, drive to work, if not, knock on my door.

Thoughts?