Douglas Olsen
In 2019, billionaire Robert F. Smith paid off the student loans of Morehouse College's graduating class of 2019, totalling around $34 million. Smith, the richest black man in America, made the surprise announcement during his commencement speech, telling the graduates, we're going to put a little fuel in your bus. The billionaire investor's gift was particularly significant as Black Americans are more likely to graduate with debt.
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Billionaire Robert F. Smith pays off Morehouse College students' loans
In 2019, billionaire Robert F. Smith paid off the student loans of Morehouse College's class of 2019. The private equity billionaire made this announcement during his commencement speech at the historically black men's college in Atlanta. Smith's donation amounted to $34 million, covering the student loan debt of approximately 400 students and their parents or guardians.
Smith, the founder, chairman, and CEO of Vista Equity Partners, said in his speech:
> "On behalf of the eight generations of my family who have been in this country, we’re going to put a little fuel in your bus. This is the challenge to you, alumni. This is my class — 2019. And my family is making a grant to eliminate their student loans."
Smith's gift was distributed through the school's new Student Success Program, which aims to help reduce or eliminate the student loan debt of Morehouse students. The program was established by the college's Board of Trustees as a national investment strategy to curb student loan debt and help graduates prosper faster.
Smith's passion for education began at a young age, as he is the son of two school teachers holding doctorates in education. He completed an internship at Bell Labs while still in high school and went on to receive a bachelor's degree in chemical engineering from Cornell University in 1985. After graduating, he began working at Goodyear Tire and Rubber and Kraft General Foods. Smith later obtained an MBA in finance and marketing from Columbia Business School in 1994, which led to him being recruited by Goldman Sachs.
Smith has been a long-time supporter of Morehouse College, and his donation has had a significant impact on the issue of student loan debt, especially among black students and their families. It has also sparked conversations about the debt gap between white and black college students and how it affects wealth-building in black communities.
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Smith's pledge cost £34 million
In 2019, billionaire philanthropist Robert F. Smith pledged to pay off the student loans of Morehouse College’s class of 2019 and their parents' educational debt, totalling $34 million. The pledge was announced during Smith's commencement speech at the historically black men's school in Atlanta. Morehouse College said in a press release that a student usually graduates with between $35,000 to $40,000 in loan debt.
Smith's pledge was an extension of his long-standing relationship with Morehouse College and his dedication to expanding educational and career opportunities for members of minority groups. In his speech, Smith encouraged the graduates to take his gift and pay it forward. He also set a challenge to Morehouse alumni to use his gift as an example for their own giving.
Smith's gift will be distributed through the school's new Student Success Program, which will solicit and accept donations to help reduce or eliminate the student loan debt of other Morehouse students. The program will also provide an income-contingent education finance alternative to compete with the current high cost, fixed payment, debt agreements.
Smith's net worth is estimated to be around $6 billion. In addition to his $34 million pledge, he has also made other significant contributions to Morehouse College, including a $1.5 million gift in 2019 to fund endowed scholarships and a park for outdoor education.
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Morehouse graduates usually have $35,000 to $40,000 in debt
In 2019, billionaire Robert F. Smith paid off the student loan debt of the entire graduating class of Morehouse College, an HBCU in Atlanta, Georgia. Smith's gift totalled 34 million and covered the debts of nearly 400 students.
Morehouse College is an all-men's, historically black college. The average Morehouse graduate carries between $35,000 and $40,000 in student loan debt by commencement day, which is more than the average student at other HBCUs. For example, Charles Releford, an aspiring illustrator, accumulated about $70,000 in loan debt during his time at Morehouse. Another student, John Cooper, had $98,000 in student loans.
Smith's donation will be distributed through the school's new Student Success Program, which will also solicit and accept donations to help reduce or eliminate the student loan debt of other Morehouse students. Smith's pledge is part of his long-standing relationship with Morehouse College and his dedication to expanding educational and career opportunities for members of minority groups.
Smith's gift has been praised as a "liberation gift" for graduates, allowing them to start their careers without debt. However, some commentators have noted that while Smith's donation is generous, it is just a band-aid on the country's $1.6 trillion student debt problem. Effective fixes to the student debt crisis might include allowing those carrying student debt to declare personal bankruptcy, tripling the amount of Pell Grant awards to low-income students, and ending taxes on private scholarships.
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Smith's pledge was a response to the US student debt crisis
In 2019, billionaire Robert F. Smith pledged to pay off the student loan debt of Morehouse College's class of 2019, totalling around 400 students. Smith's pledge, which amounted to $34 million, was a response to the growing student debt crisis in the US.
The student debt crisis in the US has been decades in the making. The term "student loan debt crisis" was first used in a 1988 academic report, which highlighted the role of the Guaranteed Student Loan Program of 1965 in creating a student loan "bubble". Since 1980, average tuition and fees have increased by 1200%, far outpacing consumer price inflation, which has risen by only 236% in the same period. This has resulted in a massive increase in debt for students and their families, with many taking on substantial debt just to attend college. As of 2025, over 42 million Americans owe a combined $1.7 trillion in federal and private student loan debt.
The crisis has been exacerbated by federal policies, including subsidized loans, government grants, and a lack of accountability for universities. This has led to a relentless rise in tuition costs, with universities pursuing costly projects and amenities. The availability of subsidized loans has also contributed to the problem, as it allows students to borrow the full cost of college, leading to a spiral of increasing tuition fees and borrowing.
Smith's pledge to pay off the student loan debt of Morehouse College's graduating class was a direct response to this crisis. Morehouse College is a historically black men's school in Atlanta, and its graduates typically carry between $35,000 to $40,000 in loan debt, higher than the average for historically black colleges and universities. Smith's donation of $34 million was distributed through the school's new Student Success Program, which aims to reduce or eliminate the student loan debt of Morehouse students.
Smith's act of generosity was met with a standing ovation and chants of "MVP" from the graduating class and their families. In his commencement address, Smith encouraged the graduates to pay it forward and challenged Morehouse alumni to follow his example. Smith's pledge not only relieved the financial burden of the graduating class but also inspired others to give, highlighting the need for collective action to address the student debt crisis.
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Smith's pledge was a surprise to Morehouse College
In 2019, billionaire Robert F. Smith pledged to pay off the student loan debt of Morehouse College's class of 2019. The private equity billionaire's pledge came as a surprise to the graduating class and the administration of Morehouse College. Smith made the announcement during his commencement address, where he received an honorary degree.
The billionaire's pledge was met with a standing ovation and chants of "MVP!". The students and their families were shocked by the announcement, with some wondering if Smith was being serious. One student, Robert James, said, "We're looking at each other like, 'Is he being serious?' That's a lot of money". Another student, Jonathan Epps, called it a "tremendous blessing" and said he hadn't fully grasped the magnitude of Smith's generosity.
Smith's pledge was also a surprise to Morehouse College's administration, who were not informed of the pledge in advance. The school's president, David A. Thomas, called it a "liberation gift" for the graduates. Thomas also acknowledged the pressure he felt for the next commencement speaker to match Smith's generosity.
Smith's pledge was estimated to cost 34 million and would benefit nearly 400 students who graduated that spring from Morehouse College. The billionaire's donation was distributed through the school's new Student Success Program, which aims to reduce or eliminate the student loan debt of Morehouse students. Smith's pledge was a significant contribution to addressing the student debt crisis in the nation.
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Frequently asked questions
Billionaire Robert F. Smith paid off the student loans of the 2019 graduating class of Morehouse College, an HBCU, at a cost of 34 million.
Smith's passion for education began at a young age. His parents were both school teachers with doctorates in education. He has also said that he became more alarmed by the lack of diversity in science, engineering, and technology as his wealth grew.
The average Morehouse College graduate had between 35,000 and 40,000 in student loan debt, which is more than the average student at other HBCUs.
