US billionaire pays entire $40m student debt at Morehouse College

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A billionaire technology investor, Robert F. Smith, stunned the entire 2019 graduating class at Morehouse College when he announced at their commencement Sunday that he would pay off their student loans, estimated at up to $40 million (£31m).

Smith, this year’s commencement speaker, made the announcement while addressing nearly 400 graduating seniors of the all-male historically black college in Atlanta. Mr Smith, who is black, is the Founder and CEO of Vista Equity Partners, a private equity firm that invests in software, data, and technology-driven companies.

“On behalf of the eight generations of my family that have been in this country, we’re gonna put a little fuel in your bus,” the investor and philanthropist told graduates in his morning address. “This is my class, 2019. And my family is making a grant to eliminate their student loans.”

The announcement immediately drew stunned looks from faculty and students alike. Then the graduates broke into the biggest cheers of the morning. Morehouse said it is the single largest gift to the college.

Mr Smith, who received an honorary doctorate from Morehouse during the ceremony, had already announced a $1.5 million gift to the school.

Smith said he expected the recipients to “pay it forward” and said he hoped that “every class has the same opportunity going forward.”

“Because we are enough to take care of our own community,” Mr Smith said. “We are enough to ensure that we have all the opportunities of the American dream. And we will show it to each other through our actions and through our words and through our deeds.”

In the weeks before graduating from Morehouse on Sunday, 22-year-old finance major Aaron Mitchom drew up a spreadsheet to calculate how long it would take him to pay back his $200,000 in student loans – 25 years at half his monthly salary, per his calculations.

In an instant, that number vanished. Mr Mitchom, sitting in the crowd, wept.

“I can delete that spreadsheet,” he said in an interview after the commencement. “I don’t have to live off of peanut butter and jelly sandwiches. I was shocked. My heart dropped. We all cried. In the moment it was like a burden had been taken off.”

Morehouse College president David A. Thomas said the gift would have a profound effect on the students’ futures. – THE TELEGRAGH

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