Billionaire tech investor stuns students by promising to pay off their student loans

Eleanor Rose20 May 2019

A billionaire technology investor stunned a group of college graduates by announcing he would pay off their students loans.

Robert F Smith, a prominent philanthropist, made the announcement while addressing nearly 400 graduating seniors at the all-male historically black Moreton College in Atlanta, Georgia.

Mr Smith, 56, is the founder and CEO of Vista Equity Partners, a private equity firm that invests in software, data and technology-driven companies.

He told the crowd: "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."

Robert F Smith giving the commencement speech at Morehouse College
AP

The announcement drew shocked looks from the crowds, before the graduates broke into cheers.

It is unclear exactly how much the act of generosity will cost Mr Smith, but students graduate with an average debt of $30,000 to $40,000, according to Terrance Dixon, vice president of enrolment management.

Students celebrated with loud cheers
AP

Smith, who has a personal net worth of $5bn, according to Forbes, had already announced a $1.5 million gift to the school.

Mr Smith, who received an honorary doctorate from Morehouse during the ceremony, 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."

Finance graduate Aaron Mitchom, 22, who owes $200,000 in student loans, said he wept at the announcement.

"I don't have to live off of peanut butter and jelly sandwiches. I was shocked. My heart dropped. We all cried," he said.

Robert F Smith with David Thomas, center, and actress Angela Bassett at Morehouse College
AP

Morehouse College president David Thomas said the gift would have a profound effect on the students' futures.

"Many of my students are interested in going into teaching, for example, but leave with an amount of student debt that makes that untenable," he said.

"In some ways, it was a liberation gift for these young men that just opened up their choices."

Associated Press contributed to this report

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