This is a wonderful and generous gift to these new college grads. Starting out without having loan debt is a huge gift.
About a year ago, Robert F Smith surpassed Oprah as the wealthiest African American. His gift to the Morehouse grad as as commencement speaker does overshadow hers to the Colorado College grads, who got a copy of her latest book. https://www.krdo.com/news/top-stories/oprah-winfrey-brings-speech-gift-to-colorado-college-graduates-sunday/1079229226
Some people will always be critical. Shouldn’t stop you from doing what you want to do to help others. Hopefully it inspires others to do the same. Or even do just something. Pay it forward as they say.
Personally, am not reading the “wonder how the applicants who didn’t choose Morehouse, or who graduated in a different class, or were full pay feel” as critical posts. They seem to be just musing, imo, as many do on CC. No one is criticizing Smith for this incredibly generous gift, and not hearing anyone expressing sour grapes.
@rutgersmamma Thank you for posting that link. I hadn’t heard of Robert Smith before. Having read more about him I can freely say he’s one awesome dude. This isn’t the only place he’s given significant money to, nor will it be his last. I really admire the super wealthy who opt to share to worthy causes. (I admire us more typical folks too, but the sheer amount the super wealthy can give - esp when many don’t - is life changing for many.)
Reading the briefs in the article of the three students in the class gave me a really good feeling this morning. Again, thanks for posting the link.
He is a participant in Buffett and Gates’ giving pledge.
Very impressive to be a member of this group.
I don’t know that posters are trying to be mean or bitter about the tremendous good fortune of the class of 2019. However, to me such a wonderful gesture does potentially create unintended consequences. For instance, I’ve read some coverage of a young man whose $90K (I believe that was the number) will be paid back by this amazing gift - but his brother is a rising junior at Morehouse and presumably he will graduate with a similar amount of debt. Should '19 brother be morally responsible for helping his '21 brother with his debt? Imagine the different career options the '19 will have that the '21 won’t, or the potential to buy a house, etc.
Good question, @GnocchiB. Smith did say he hopes the members of this class will pay it forward as they succeed in their career, so hopefully the older brother will be in the financial position to do so.
90k means some of that debt is parent loans. So the parents will overall have less debt now.
According to the WSJ, the total cost of the gift is estimated to be $40 million. One thing I wonder about, won’t there be tax implications in cases where the loan payoff exceeds the $15K gift exemption?
The tax implications will affect him, the giver. Not the recipients.
Interesting question, @VickiSoCal . Am assuming that his pledge to pay “all student debt” meant the student and parent loans. Is this for sure the pledge? I think so, and I think that was his intent, but its hard to find in print.
I suspect most, if not all, of the recipients will take the Pay It Forward message to heart. I’ve seen that work at school a lot, esp among those most needy who sense the most gratitude.
Child #1 works through high school, saves everything and buys a car senior year.
Child #2 doesn’t work, takes out a loan and buys a car senior year
Grandma comes to town for graduation and says ‘it’s not a good idea to have a car loan when you go off to college so I am going to pay it off for you’.
Child #2 does a big happy dance
Child #1 should do or feel what?
Sounds like posters here think they should do a happy dance as well
How is it being negative or judgemental to wonder how child #1 feels?
The ones who assume negativity are the ones who are judging
This isn’t a personal situation like it would be with a grandparent or other family member, though. Therefore, one shouldn’t take it personally and should try to keep the green monster in check. As I said before, it’s like winning the lottery. I don’t think the grandmother analogy works here, IMO.
When ALL someone posts is a negative response, yes, I do read that as negativity. If you can’t see the good in this story and only speak to criticisms, then, yes, I am judging you.
Grandma brought them both into this world, so to speak. Grandma can certainly look for ways to gift the other kid.
Smith attaches at one point in a graduate’s life, seeing a need and meeting it.
He is not Granpa Smith.
“Child #2 doesn’t work, takes out a loan and buys a car senior year”
Post #33 also assumes that the students who received the loan payment by Smith weren’t deserving or were less deserving of those that didn’t get the generous gift. Again, not an applicable analogy.
If grandma is showing favoritism to one grandchild, then it’s understandable that the other grandchildren might feel put out, though remember that grandma might be giving something else to the other kids. For one of mine, she helped with a car. For another, she helped with a Study Abroad, etc.
This is not a situation where the giver knew the recipients. It’s more related to how those of us who give to charities of any sort don’t know intimate details vs giving to individuals when we might. We still give to charity hoping good things are done supporting causes we want to support even though it hardly solves all needs out there.
If people get gifts, esp gifts like this, I’m happy for them.
I loved watching the speech and the stunned reaction of the new graduates. I’m confident many will pay it forward, remembering the generosity that helped them. I hope the rest of us will look at this and realize the great benefit of this kind of generosity to ourselves, even at the much much smaller level we can manage, and be inspired to help out other people.
One great thing about this gift is, these new graduates actually have the debt. It’s not like they can use the money to buy cars or whatever; it goes to pay off their debt.
I think his contribution is very generous. I am not sure I agree with helping some of the graduates and not the others. I think he is discriminating.