Savanna Hoffman
In 2019, billionaire investor Robert F. Smith pledged to pay off the student loans of the entire graduating class of Morehouse College, a private men's college in Atlanta. Smith, who founded Vista Equity Partners and became the richest black man in America, said that he and his family would pay off the student debt, which totaled $34 million, to free the graduates from loan payments as they began the next chapter of their lives. Smith's announcement came amid growing calls across the country to address the mounting burden of student loan debt. Several celebrities, including Nicki Minaj, Taylor Swift, and Beyoncé, have also made headlines for their donations to help students pay off their loans.
| Characteristics | Values |
|---|---|
| Name | Robert F. Smith |
| Occupation | Investor, Founder, Chairman and CEO of Vista Equity Partners |
| Year | 2019 |
| Number of students | 396-400 |
| Amount paid off | $34 million-$40 million |
| College | Morehouse College |
| State | Georgia |
| City | Atlanta |
| Student profile | Historically black college for men |
| Previous donations | Cornell, National Museum of African American History and Culture |
| Own charitable initiative | Fund II Foundation |
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What You'll Learn
Billionaire Robert Smith pays off Morehouse student loans
In 2019, billionaire Robert F. Smith, the founder, chairman and CEO of Vista Equity Partners, made headlines when he pledged to pay off the student loan debt of the entire graduating class of Morehouse College, a private men's college in Atlanta. This pledge, amounting to $34 million, included not only the student loans taken out by the graduates but also the parent loans taken out by their parents or guardians.
Smith's announcement came as a surprise to the graduating class and Morehouse administrators during the commencement ceremony. In his speech, Smith acknowledged the burden of student loan debt, saying, "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. This is my class, 2019. And my family is making a grant to eliminate their student loans."
The collective payoff for the nearly 400 graduates of the Class of 2019 was facilitated through the newly established Morehouse Student Success Program, a scholarship, loan debt, research, and educational initiative established by the college's Board of Trustees. This initiative aimed to curb student loan debt and help graduates prosper faster by providing them with financial freedom as they began their careers.
Smith's generosity amplified national conversations about the debt gap between white and black college students and highlighted the disproportionate impact of student loan debt on black communities. Morehouse College President David A. Thomas praised Smith's gift as "liberation" for the graduates, empowering them to pursue their career goals and serve their communities without the burden of debt.
Following Smith's lead, Morehouse College has since received inquiries from individuals inspired to help alleviate the student loan debt of its graduates, leading to the development of the Student Freedom Initiative. This initiative offers income-based financing alternatives to help reduce college debt at historically Black colleges and universities (HBCUs).
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Robert Smith's pledge to pay off student loans
In 2019, billionaire Robert F. Smith pledged to pay off the student loans of the entire graduating class of Morehouse College, a private men's college in Atlanta. Smith, the founder, chairman, and CEO of Vista Equity Partners, made the surprise announcement during the commencement ceremony, stating:
> "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. This is my class, 2019. And my family is making a grant to eliminate their student loans...Co: 1,7,19>I know my class will make sure they pay this forward…and let’s make sure every class has the same opportunity going forward because we are enough to take care of our own community."
Smith's gift, totaling $34 million, covered the student loans of more than 400 graduates, as well as the loans taken out by their parents or guardians. The decision to include parent loans was made by Smith himself, demonstrating his understanding of the burden of student loan debt on families.
The payments were made through the Morehouse Student Success Program, a scholarship, loan debt, research, and educational initiative established by the college's Board of Trustees. The program aims to curb student loan debt and help graduates prosper faster, providing them with financial freedom to pursue their career goals and serve their communities.
Smith's pledge highlighted the issue of crippling student loan debt, particularly among Black students and their families. It also amplified national conversations about the debt gap between White and Black college students and how it impacts wealth building in Black communities. Smith's donation inspired others to contribute, with the college receiving numerous inquiries from people wanting to help in similar ways.
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Student loan debt statistics in the US
The cost of college has steadily increased over the last 30 years, with tuition costs at public four-year colleges more than doubling from $4,160 to $10,740, and private nonprofit institutions seeing a rise from $19,360 to $38,070 (adjusted for inflation). As a result, more than half of students now leave school with debt.
As of 2024 Q1, the national private student loan balance was $133.4 billion, with 90.70% for undergraduate loans and 9.3% for graduate student loans. Undergraduate loans account for 89.1% of the outstanding balance held by 14 major contributors to the Enterval Analytics Private Student Loan Report, while graduate loans make up 10.9%.
In total, Americans owe $1.6 trillion to $1.75 trillion in federal and private student loan debt, with about 43 million to 46.2 million borrowers. Federal student loans make up around 92% of this debt. The average debt for bachelor's degree recipients from four-year public and private nonprofit colleges in 2022 was $29,400, with private nonprofit graduates owing $22,200 and public college graduates owing $20,700.
The burden of student loan debt falls disproportionately on Black college students, with the average Black graduate having $7,400 more in debt than their white peers. Morehouse College, a private men's college, gained attention when billionaire Robert F. Smith pledged to pay off the student loans of the entire Class of 2019, totalling $34 million. This gift was intended to address the debt gap between white and Black college students and the resulting wealth disparity, as well as to provide financial freedom for graduates to pursue their career goals without the burden of debt.
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Celebrities who have helped pay off student loans
Several celebrities have used their wealth to help students pay off their loans. Here are some notable examples:
Nicki Minaj
Nicki Minaj has been outspoken about the importance of education and has helped many students pay off their loans. In 2017, she asked students to send her their straight-A report cards, promising to pay for their tuition. She gave a total of $18,000 that week, completely paying off seven student loans. In 2018, she took to Twitter again and opened up the "Student of the Game" college fund, asking fans to tweet how much money they needed and what it was for. Minaj has helped at least 30 students with their loans and tuition fees.
Robert F. Smith
In 2019, billionaire investor Robert F. Smith pledged to pay off the student loan debt of the entire graduating class of Morehouse College, a private men's college in Atlanta. The collective payoff amounted to $34 million and included loans taken out by the students' parents or guardians. Smith's donation fuelled conversations about the debt gap between white and black college students and how it affects wealth building in black communities.
Taylor Swift
Taylor Swift sent a cheque for $1,989 to a fan named Bortniker to help with her student loan payments. Swift was appreciative of Bortniker's positive video messages and constant support.
Rihanna
Rihanna has a global scholarship program through her foundation, the Clara Lionel Foundation. Students from Brazil, Barbados, Cuba, Haiti, Grenada, Guyana, or Jamaica who are accepted to a four-year college or university in the US may be eligible for the scholarship, which awards between $5,000 and $50,000.
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How to get a celebrity to pay off your student loans
While it is not a common occurrence, there have been instances of celebrities paying off student loans for their fans. Here are some ways you might be able to get a celebrity to pay off your student loans:
- Social Media Engagement: Some celebrities have been known to respond to requests for assistance with student loans on social media platforms such as Twitter. They might set up a contest or ask for proof of good grades before offering to pay off loans. Nicki Minaj, for example, took to Twitter to field requests for assistance and ended up promising financial help to more than 20 fans.
- Crowdfunding: In some cases, celebrities have noticed and responded to crowdfunding campaigns set up by individuals to raise funds for their education. For instance, Chrissy Teigen donated $5,605 to Mercedes Edney's crowdfunding campaign, helping her reach her goal and fulfil her dream of attending beauty school.
- Scholarship Programs: Several celebrities have established scholarship programs to support students in specific fields or from certain backgrounds. For example, Beyoncé's Formation Scholars program provides scholarships to female students studying creative arts, music, literature, or African-American studies. Similarly, Rihanna launched a Global Scholarship Program through her Clara Lionel Foundation to offer financial assistance to aspiring college students from several Caribbean countries, including her native Barbados.
- Surprise Gifts: Occasionally, celebrities might surprise their fans with financial assistance. Taylor Swift, for instance, sent a package to a superfan, Rebekah Bortniker, which included a $1,989 check to help with her student loans.
- Contests and Challenges: Some celebrities might set up contests or challenges, offering to pay off student loans as a prize. For example, Drake made a surprise visit to the University of Miami to award a $50,000 scholarship to a student, Destiny James.
- Direct Requests: While it may be a long shot, you could try reaching out directly to celebrities or their teams via email, social media, or other means to explain your situation and request assistance. However, this may not always be the most practical approach.
While it is inspiring to see celebrities helping individuals with their student loans, it is important to remember that relying solely on donors or celebrity assistance is not a reliable strategy for managing your debt. Be sure to explore other options such as grants, federal loan forgiveness programs, and income-driven repayment plans to take control of your student loan repayment journey.
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Frequently asked questions
Robert F. Smith, the billionaire investor who founded Vista Equity Partners, pledged to pay off the student loans of the entire graduating class of 2019 at Morehouse College.
The collective payoff amounted to $34 million, including loans taken out by the students' parents or guardians.
Yes, in 2016, Robert F. Smith donated $50 million to his alma mater Cornell, creating a program to support black and female engineering students. He also has his own charitable initiative, the Fund II Foundation, which supports preserving African-American culture, promoting human rights, environmental conservation efforts, music education, and entrepreneurship.
Yes, several celebrities have made one-time wipeouts of student debt or provided ongoing scholarships. Some examples include Taylor Swift, Nicki Minaj, Beyoncé, LeBron James, Chrissy Teigen, and Oprah Winfrey.
