FEATURED ARTICLE

Billionaire pays Ksh 4 billion student loans for graduates

Share
Robert F. Smith. Mr Smith, who was this year's commencement speaker at the graduation event, made the announcement while addressing nearly 400 graduating seniors of the all-male historically black college in Atlanta.
Share

Robert F. Smith, a billionaire technology investor astonished an entire graduating class at Morehouse College in the US when he announced at their commencement Sunday that he would pay off their student loans — estimated at $40 million (Ksh 4 billion).

Mr Smith, who was this year’s commencement speaker at the graduation event, made the announcement while addressing nearly 400 graduating seniors of the all-male historically black college in Atlanta. Smith is also the founder and CEO of Vista Equity Partners, a private equity firm that invests in software, data, and technology-driven companies.

“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,” he told the graduates, “This is my class, 2019. And my family is making a grant to eliminate their student loans.”

The announcement came at a time of growing calls across the US to do something about the mounting burden of student loan debt, which has more than doubled in the past decade.

On hearing this, the graduands cheered on without belief one of their problems has just been sorted in a flash. Some of the students had drawn up spreadsheets to calculate the amount of time it would take them to finish paying the loan and got 25 years at least, with half their salaries.

“I can delete that spreadsheet,” Aaron Mitchom, a graduand said in an interview after the commencement. “I don’t have to live off of peanut butter and jelly sandwiches. I was shocked. My heart dropped. We all cried. At the moment it was like a burden had been taken off.”

In fact, Smith did more than just pay the loans. He had announced earlier that he will gift the school with $1.5 million.

Read: Why Mashemeji Derby thrill will never die

The billionaire will have to part with $40 million but a lot of young people will be benefiting from it. It is an act of kindness that will help the graduands’ future.

Written by
Kevin Namunwa

Kevin Namunwa is a senior reporter for Business Today. Email at [email protected].

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
ILAM FAHARI I-REIT
BUSINESSNEWS

ILAM Fahari I-REIT net profit up 31.6% to KSh 84.7 m

ILAM Fahari I-REIT, a real estate investment trust in Kenya, saw its...

ANALYSISBUSINESS

Kenya Re Boardroom fights: Why investors are not worried

Kenya Re-Insurance Corporation has been in the limelight in recent weeks following...

Eaagads net profit ups 132% to KSh 27.6m
BUSINESS

Eaagads Net Profit Up 132.9% to KSh27.6Mn

Eaagads Limited, a listed coffee firm with its headquarters in Kiambu County,...

Michael Joseph
BUSINESSNEWS

De La Rue taps Ex-Safaricom Boss Michael Joseph to Join its Board

De La Rue EPZ Kenya Limited, a cash minting business that is...