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What It’s Like to Have $200k of Student Debt Erased

Billionaire Robert F. Smith surprised their graduating class by paying off their student debt. 👀 Now, these three Morehouse College grads are talking about how it has changed their lives forever. 💸

What It’s Like to Have $200k of Student Debt Erased

1 in 4 Americans have student loan debt. The average student loan debt amount is $37, 000 according to nitrocollege. For the 396 young men who graduated, it means that cost would no longer be a main concern. In 2018, nearly 40% of students with loans considered dropping out to avoid paying more student loan debt according to MagnifyMoney.com Black graduates owe $7,400 more in debt than their white peers according to the Brookings Institution.

Based on 2017 data, the average debt for graduates from the private, historically black, all-male Morehouse College then was $31,833 in 2017, with 80% of graduates carrying student loan debt, according to the Project on Student Debt published by the Institute for College Access & Success. (Those figures do not include loans borrowed by parents under the federal Parent PLUS program.)

About 65% of college seniors who graduated from public and private nonprofit colleges in 2017 had student loan debt, according to the Project on Student Debt. Borrowers owed an average of $28,650, roughly 1% higher than the 2016 average. Updated figures will be released later this year. (Those figures do not include loans borrowed by parents under the federal Parent PLUS program.)

These 2019 graduates of Morehouse College — a historically black college— are debt free after billionaire investor Robert F. Smith announced he would pay off their loans. That special 2019 graduating class includes 11 students from Michigan altogether, one from Detroit, according to Morehouse's records. The other Michigan students are from West Bloomfield, St. Clair, Lansing, Ann Arbor, Troy, Highland Park, Lake Orion and Grand Rapids, according to Morehouse.

Robert Smith said his announcement was meant to set an example of paying it forward, to inspire, empower and change the world.

Brut.

05/28/2019 10:22 AMupdated: 05/28/2019 1:28 PM
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8 comments

  • Sonya W.
    05/28/2019 10:48

    This is amazing.

  • Andre J.
    05/28/2019 11:22

    Thank you, Sir !

  • Brut
    05/28/2019 16:57

    America owes $1.5 trillion in student debt and more than half of college graduates are struggling to pay off their student loans. 💸3

  • محمود ا.
    05/28/2019 17:54

    Humane and good work deserves all the thanks and appreciation

  • Richard B.
    05/28/2019 22:32

    Instead of talking about buying new stuff, take that new found money and buy stock in Robert Smith's Companies!!! It's obvious he knows what he's doing, learn from him!

  • Rud T.
    05/29/2019 07:02

    Ha ha ha funny and first thing they thought is what to spend their money now that they dont need to pay debts. Sad they should have thought of starting to invest and get better income now that they need not pay their debt.

  • Janet F.
    05/31/2019 16:52

    I remember when i was a small child my grandmother donated money to the Collage for Black people!! She also fed the hobo's that came buy, that was in Iowa.

  • May F.
    06/02/2019 04:36

    What a wonderful human being.