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The federal government has some loan cancellation programs, but they are suitable for certain categories of students – those who have jobs in the public service, or those who have been misled by for-profit institutions – or only take effect after several years. faithful repayment. Some of the forgiveness programs stalled or raised doubts about the government's ability to repair them.
Some institutions have responded to the student debt crisis by reducing or eliminating tuition fees. The New York University School of Medicine recently announced that it would be free for all students, due to the "overwhelming financial debt" of graduates. This was made possible in part by an important gift from Kenneth Langone, founder of Home Depot, and his wife, Elaine, who gave his name to the Faculty of Medicine.
Loan cancellation does not usually come directly from the pockets of billionaires, despite the many calls they have made in recent years. Warren's plan, for example, would require wealthy citizens like Smith to reduce much of the nation's $ 1.5 trillion debt in the form of a student loan.
For Morehouse graduates, debt relief will be immediate, saving them about ten or more monthly payments, which may be particularly difficult to bear in the difficult years after graduation. The standard repayment plan for federal student loans goes up to 10 years, but research has shown that most students take a lot longer than that to pay off their balance. The average debt of students benefiting from a federal loan is $ 32,000, according to government data.
Forbes estimates Mr. Smith's fortune at about $ 5 billion, primarily through Vista Equity Partners, a private equity firm specializing in the purchase and sale of software companies. The company manages about $ 46 billion in assets, according to Forbes. It is a private company that does not publish its results, but it is believed to be one of the country's best-performing companies, with annualized returns of more than 20% since inception.
Smith, who was one of the largest donors to the Smithsonian Institution's National Museum of African History and African-American Culture, has long been an active philanthropist. The Morehouse Grant is his latest effort in Atlanta to support causes directly related to Afro-American history, culture and education.
Earlier this year, Smith's foundation purchased the home of Reverend Martin Luther King Jr., as well as the house where he lived with his wife and children, and donated the two properties to National parks. . Dr. King was a graduate of Morehouse.
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