Ibrahim Gardner
In 2019, billionaire philanthropist Robert F. Smith, the richest black man in America, stunned the graduating class of Morehouse College, an all-male, historically black college in Atlanta, Georgia, by pledging to pay off their student loans, estimated at $40 million. Smith, who earned a bachelor's degree from Cornell University, had previously donated $50 million to Cornell to support chemical and biomolecular engineering, and black and female students in the engineering school. Smith's pledge highlights racial disparities in student debt and serves as a clarion call for black business executives to help address the mounting burden of student loan debt.
| Characteristics | Values |
|---|---|
| Name of the Speaker | Robert F. Smith |
| College | Morehouse College |
| Year | 2019 |
| Number of students | 396 |
| Amount paid | $40 million |
| Student loan amount per student | $30,000 to $40,000 |
| Student loan amount paid by Smith per student | $101,010 to $101,513 |
| Smith's profession | Billionaire technology investor and philanthropist |
| Net worth of Smith | $4.5 billion to $5 billion |
| Previous donations by Smith | $50 million to Cornell University, $1.5 million to Morehouse College |
| Previous donations by Smith to Cornell University | To support chemical and biomolecular engineering, and African American and female students in the engineering school |
| Name of the college where Smith got his bachelor's degree | Cornell University |
| Name of Smith's private equity firm | Vista Equity Partners |
| Name of the college where Snapchat co-founder Evan Spiegel took classes | Otis College of Art and Design |
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What You'll Learn
- Billionaire Robert F. Smith pays off student loans for the entire 2019 graduating class of Morehouse College
- Robert F. Smith's pledge to pay off student loans was worth around $40 million
- Robert F. Smith's philanthropy and previous donations to educational causes
- The impact of Robert F. Smith's pledge on the lives of Morehouse College graduates
- Other instances of commencement speakers paying off student loans, such as Snapchat co-founder Evan Spiegel
Billionaire Robert F. Smith pays off student loans for the entire 2019 graduating class of Morehouse College
Billionaire Robert F. Smith stunned the graduating class of 2019 at Morehouse College, a historically black college in Atlanta, when he announced that he would pay off their student loans. Smith, the commencement speaker and billionaire investor, said he would provide grants to wipe out the debt of nearly 400 students, estimated at up to $40 million.
Smith's pledge highlighted racial disparities in student debt and turned into a clarion call for black business executives to help. The average black graduate has $7,400 more in debt than their white peers. Smith's announcement came at a time of growing calls across the country to address the mounting burden of student loan debt, which has more than doubled in the past decade.
Smith, who has a net worth of $4.5 billion, made his fortune from his private equity firm, Vista Equity. He has a history of philanthropy, having directed tens of millions of dollars to the United Negro College Fund and made significant donations to Cornell University and Morehouse College to support scholarships and increase diversity in science, engineering, and technology.
Smith's gift to the graduating class of 2019 at Morehouse College will allow them to pursue their chosen career paths without the burden of debt. "I'm shocked. My heart dropped. We all cried," said Aaron Mitchom, a finance student with $200,000 in student loans. "I can delete that spreadsheet. I don't have to live off of peanut butter and jelly sandwiches." Deionte Jones, another student with $25,000 in debt, said, "It was a sense of a new start on life... This lifts a huge weight off my family's back."
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Robert F. Smith's pledge to pay off student loans was worth around $40 million
In 2019, Robert F. Smith, a billionaire technology investor and philanthropist, pledged to pay off the student loans of the entire graduating class of Morehouse College, an HBCU (historically Black college or university) in Atlanta, Georgia. Smith, the commencement speaker for the graduating class, announced that he and his family would provide grants to wipe out the student debt of the nearly 400 graduates, estimated to be worth around $40 million.
Smith's pledge was met with stunned looks and cheers from both the faculty and students. Morehouse College stated that this was the "single largest gift to the college." The average debt of Morehouse graduates is $30,000 to $40,000, and Smith's gift meant that these graduates could pursue their chosen career paths and further education without the burden of student loans.
Smith's interest in higher education and paying it forward stems from his childhood. His mother would send $25 monthly checks to the United Negro College Fund, an organization to which Smith later directed tens of millions of dollars. Smith has also made significant donations to other educational institutions, including Cornell University, where he earned his bachelor's degree, and Morehouse College, where he had previously announced a $1.5 million gift to fund scholarships.
Smith's pledge highlights the growing issue of student loan debt in the United States, which has more than doubled in the past decade. It also draws attention to racial disparities in student debt, with the average Black graduate having $7,400 more in debt than their white peers. Smith's example has inspired other philanthropists and business executives to take action and address the financial burden of student loans.
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Robert F. Smith's philanthropy and previous donations to educational causes
Robert F. Smith is an American businessman, philanthropist and entrepreneur. He is the founder, chairman and CEO of the private equity firm Vista Equity Partners. Smith co-founded Lincoln Hills Cares with Matthew Burkett to provide young adults and families with access to education, recreation and workforce advancement. He is also the leading sponsor of the Trail Bridge at Congress Avenue project in Austin, Texas, donating $1.2 million to improve infrastructure and safety.
Smith's philanthropic efforts are largely focused on education reform, career readiness, and healthcare. He has contributed to dozens of organisations and institutions, with a particular focus on supporting the Black community, women, and those who lack access to opportunities. Smith has also worked to raise awareness of the limited opportunities for those without access to education and jobs.
In 2016, Smith donated $20 million to Cornell University, his alma mater, where he received a bachelor's degree in chemical engineering. That same year, Smith and the Fund II Foundation, of which he is the founding director and president, made a combined $50 million gift to Cornell. In 2022, Smith donated a further $15 million to Cornell's College of Engineering, establishing three scholarship funds for students from underrepresented communities.
Smith has also made significant donations to Columbia Business School, where he is a member of the Board of Overseers. In 2017, he donated $15 million to the school's Manhattanville Campus Fund. In 2022, he donated a further $10 million to establish the Robert F. Smith '94 Scholarship Fund to support students in need, particularly those from diverse backgrounds who have overcome significant challenges.
In addition to his contributions to Cornell and Columbia, Smith has supported numerous other educational causes. He has made donations to the Ron Brown Scholar Program, the United Negro College Fund, and the Sphinx Organization, a Detroit-based social justice nonprofit that helps transform lives through music and art. Smith has also worked with the Student Freedom Initiative to address the growing negative impact of student loan debt on college graduates, particularly graduates of colour. In 2019, he announced that he would pay off the entire student loan debt of the 2019 graduating class of Morehouse College, a historically Black college, totalling $34 million.
Smith is also committed to supporting healthcare initiatives, particularly in the area of prostate cancer research and treatment for Black men. He has partnered with organisations such as the Prostate Cancer Foundation and the City of Hope Gala to advance research and provide critical health screenings.
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The impact of Robert F. Smith's pledge on the lives of Morehouse College graduates
In 2019, Robert F. Smith, a billionaire technology investor, philanthropist, and Morehouse College commencement speaker, pledged to pay off the student loan debt accrued by the graduating class during their time at Morehouse. This gift, totalling an estimated $34 million, significantly impacted the lives of the approximately 400 graduates.
The pledge eliminated the financial burden of student debt, which averaged $30,000 to $40,000 per student, freeing them to pursue opportunities without the weight of loan payments. For example, Aaron Mitchom, a finance major with $200,000 in student debt, is now launching a tech startup, Freedom, which will use AI to make personal loans for bail bonds. Similarly, Elijah Dormeus, who saved $65,000 due to Smith's donation, is now investing and building savings, and plans to start a nonprofit to help low-income students.
Smith's pledge also extended to cover debts held by the graduates' guardians, further benefiting their families. This aspect of the pledge demonstrates Smith's understanding of the communal nature of student debt, often requiring the support of loved ones.
Smith's generosity inspired the graduates to pay it forward. The Student Freedom Initiative (SFI), an income-contingent education funding alternative for STEM students at HBCUs and Minority-Serving Institutions, was launched in 2021 with Smith's $50 million contribution. SFI aims to redefine how Black students fund their education, providing a flexible and sustainable solution for college affordability.
Smith's pledge not only transformed the lives of the Morehouse College Class of 2019 but also sparked a movement to address the burden of student loan debt, particularly for African American students, who graduate with significantly higher debt than their white peers.
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Other instances of commencement speakers paying off student loans, such as Snapchat co-founder Evan Spiegel
In 2022, Snapchat co-founder and billionaire Evan Spiegel, along with his wife Miranda Kerr, paid off the student loans of the entire graduating class of 2022 at Otis College of Art and Design in Los Angeles. Spiegel and Kerr made the donation, which was not disclosed but is estimated to be more than $10 million, through the Spiegel Family Fund. This was the largest donation in the college's history.
In addition to Spiegel and Kerr, there have been other instances of commencement speakers or donors paying off student loans for graduating classes. Here are some notable examples:
- Robert Smith: In 2019, billionaire Robert Smith made headlines when he announced he would cover the loan debt of the entire graduating class at Morehouse College, a historically Black men's school in Atlanta. Smith's donation totaled $34 million.
- Anonymous donor at Wiley College: Graduates at Wiley College in Marshall, Texas, had their debts cleared by an anonymous donor.
- Pinky Cole at Clark Atlanta University: Restaurateur Pinky Cole announced at the commencement ceremony of Clark Atlanta University that she would gift each of the over 800 graduates their own limited liability company to kickstart their entrepreneurial journeys.
- Biden administration's student loan forgiveness plan: While not specific to commencement speakers, it is worth mentioning that the Biden administration proposed a student loan forgiveness plan in August 2022, which is currently before the Supreme Court. The plan aims to cancel up to $20,000 in student loan debt for millions of Americans.
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Frequently asked questions
Morehouse College.
Robert F. Smith, a billionaire technology investor and philanthropist.
Smith's gift was estimated to be worth around $10 million to $40 million.
The announcement drew stunned looks from faculty and students, followed by the biggest cheers of the morning and a standing ovation.
No, it was a gift. However, Smith reminded the students that they have a debt to society and encouraged them to pay it forward.
