Kathy Callaghan attended the US Air Force Academy (USAFA), graduating in 1984 with a degree in management. At the time of her 1988 Olympic appearance she was a lieutenant in the Air Force, working as a finance officer. Callaghan won a gold medal in handball at the 1987 Pan American Games. She was named the 1986 Military Athlete of the Year. She played on the 1986 US Championship team, and her team placed second at the 1988 US Nationals. Callaghan coached the USAFA team, leading them to the 1988 US intercollegiate title.