Back in May many were shocked and even brought to tears when billionaire Robert F. Smith announced during the 2019 Morehouse graduation ceremony that he would pay off the full student loan debt for the entire class. Well, not only is he making good on that promise—but now the parents of those students are receiving a gift as well.
@Bloomberg reports that Robert F. Smith’s plans for paying off the student loan debt for the Morehouse 2019 graduates, totaling $34 million, is moving forward, but now he has decided to increase his incredible generosity by also paying off the federal educational debt amassed by the parents of the graduates.
This news comes after Morehouse is set to send out formal letters to students detailing the specifics of how Smith’s student loan payment promise will be handled. Smith’s gift has ushered in a new program at Morehouse in which the college will solicit donations made specifically to reduce or eliminate its students’ debt, either as individuals or an entire class.
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Under the new program, over student 400 borrowers will be covered by the donation for loan balances held as of August 28, 2019. In addition to federal and a Georgia state loan, certain private student loans processed through Morehouse will also be paid off. There are six eligible loan types in all. Representatives for the school estimates that it expects to finish the disbursement to all loan service providers by spring of 2020.
To date, more than 68% of Morehouse undergraduates have taken out federal loans. In a statement, Morehouse said that its student loan debt upon graduation is $35,000 to $40,000, which is higher than the average for students at historically black colleges and universities.
Robert F. Smith’s net worth is estimated at $6 billion, due to his successful private equity firm Vista Equity Partners.
Roommates, what are your thoughts on this?
