FC/OT: Billionaire to pay off college loan debt for every Morehouse graduate...

[BBrown]

So, as the article states, he is a very interesting guy.

Vista Equity Partners owns several assets outright. The largest is Finastra which is HQ'ed in London but has substantial assets in the USA. He is very invested in openness and diversity. Many of his senior people are minorities: far higher than the average. SMT members are given a bonus on diversity of their staff.

What he does is buy software companies who's product is proven in the market but mismanaged. His theory is that software companies are run by technology entrepreneurs who either are underfunded, poor business managers or don't want to manage a business. So Vista has these things named V-SOPs witch are "Vista Standard Operating Procedures". He typically will take the tangential burden off the software company (HR, AR/AP, implementation, data center operations, support) away and allow them to concentrate on innovation and development. It is painful but very smart.

Unfortunately, investment is private and there is no public offering.

Here is an article, about a year old, that goes into his philosophy in greater detail.

We need more of this guy...much, much more. he likes to use an African saying: "if you want to go fast, go alone. If you want to go far, go with friends." I use that a lot in business.

That is a great "saying".

 

[Obliviax]

https://en.m.wikipedia.org/wiki/Hope_Dworaczyk

He named his kid "Legend Robert Smith"? Ouch. She graduated HS at age 16, pretty impressive.

 

[BobPSU92]

Imagine if a wealthy alum gave money to only graduates of a particular department within a college or university to forgive debt. Can you imagine the uproar that would create? Some people are OUTRAGED. by Smith's generosity to an entire graduating class, but imagine what would happen if an alum gave money only to, say, the college of engineering? Even better, imagine if the gift were given only to graduates of the liberal arts college.

 

[BobPSU92]

He named his kid "Legend Robert Smith"? Ouch. She graduated HS at age 16, pretty impressive.

They have another son named Leader Robert Smith.

 

[Obliviax]

They have another son named Leader Robert Smith.

LOL...that's funny!

 

[BobPSU92]

He named his kid "Legend Robert Smith"? Ouch. She graduated HS at age 16, pretty impressive.

She is very impressive.

Be right back.

 

[Obliviax]

Does she also like puppies and picnics on the beach, and hate rainy days and mean people?

And want to end world hunger. When you look like that, you can like anything you want.

 

[PSUcup1]

Awesome stuff

Very very cool of him

 

[aferrelli]

I thought billionaires were the bad guys. Couldn’t the govt make better use of that money?

Why do you feel the need to be political? You’re trying to make something out of nothing here and are unnecessarily trying to read between the lines in a political way.

 

[psuro]

There is no one on this board that would turn down a monetary gift to reduce their debt - whether it be credit cards, student loans, mortgage, car loan. No one. And the first person(s) to step in line to get bailed out of their debt would be the person(s) who look to find fault in what this man is doing.

And only on this board would you find someone who find a way to a) complain about it, or b) try to tie it in to something they are unhappy about with PSU admin. You jabronies need to let that be it's own issue.

 

[MJG-90]

That said, if one was going to use $40,000,000 of capital, with the idea of “helping college kids”, there are much more impactful - and multiplicative - ways to do it.

I'm not sure I agree with this. As quoted below, one kid calculated it would take him half of his income for half of his working career (no clue what math he used) to pay off his student loans. If each kid is in a similar situation, I'd think the donor just made 400 kids a lot more prosperous and hopefully that translates to bigger things for society. Really it comes down to what this lucky group does with his gift.

Doesn’t speak much of the value of a Morehouse education if it is given away essentially for free. College is an investment. It creates equity over time. Very shortsited act, diminishes the value of education and sends the message of expecting a hand out.

Nobody forced you to go to a college that costs $50k. These students choose it and now won’t have to deal with the consequences of their actions, for good or for bad.

I would have much more respect for a graduate of Morehead State who dddn’t think they were entitled to a handout than a grad of any other college who thinks they are.

This does nothing but create another generation of entitled cry, perpetual. Adelescent cry babies. Time to grow up and accept responsibility for you good or bad college decisions.

Also, isn’t it interstitial that college tuition exploded once the federal government took over the student loan racket?

Dude, what? They went to college expecting to pay off their debt on their own. How does getting a gift like this diminish their education and the effort they each put into getting that education? And none of them put out their hand expecting this gift. Go back to your cell (I'm assuming 060802 is your prisoner number).

"In the weeks before graduating from Morehouse on Sunday, 22-year-old finance major Aaron Mitchom drew up a spreadsheet to calculate how long it would take him to pay back his $200,000 in student loans — 25 years at half his monthly salary, per his calculations."

This is eye opening for me. If it's true, we definitely have a problem on our hands. We are handcuffing a generation (or more) from the start. They'll be spending like minimum wage earners, because that's basically what they'll be. No wonder millennials are strange birds.

Did you pay for every single penny of your own college education? If not how did not become a entitled, perpetual adolescent cry baby? Just because someone gets help doesn't mean they automatically become cry babies. I am sure many poster here had others pay for their college and turned out just fine.

My parents paid room and board for 4 years (I was on the 6 year plan) and I paid tuition and books. I worked summers and over breaks as much as possible. I finished at Harrisburg campus and worked evenings then (this was my last two years when my room and board stipend had dried up). Doing that, I ended up with just over $17k in debt (all owed to my parents, who kept a book with everything written down). It was rough. But I definitely think it made me think differently than others (my wife for one) whose parents funded their education. I don't want to get into a battle of wits over this. I'm sure lots of people are fine citizens regardless of how their education got funded. I'm speaking of first hand experience only.

 

[BBrown]

There is no one on this board that would turn down a monetary gift to reduce their debt - whether it be credit cards, student loans, mortgage, car loan. No one. And the first person(s) to step in line to get bailed out of their debt would be the person(s) who look to find fault in what this man is doing.

And only on this board would you find someone who find a way to a) complain about it, or b) try to tie it in to something they are unhappy about with PSU admin. You jabronies need to let that be it's own issue.

 

[Sharkies]

Someone always feels left out; like the 101st friend not invited to the 100 person wedding

Gotta be some senior out there who for whatever reason was 1 class short of graduating... he's gonna wish he had taken that extra class last semester.

 

[Obliviax]

Gotta be some senior out there who for whatever reason was 1 class short of graduating... he's gonna wish he had taken that extra class last semester.

Agree...but if someone is angry because of the good fortune of others, they won't go very far.

 

[psuro]

Gotta be some senior out there who for whatever reason was 1 class short of graduating... he's gonna wish he had taken that extra class last semester.

...and if his parents are paying for it......

 

[ThePennsyOracle]

There is no one on this board that would turn down a monetary gift to reduce their debt - whether it be credit cards, student loans, mortgage, car loan. No one. And the first person(s) to step in line to get bailed out of their debt would be the person(s) who look to find fault in what this man is doing.

And only on this board would you find someone who find a way to a) complain about it, or b) try to tie it in to something they are unhappy about with PSU admin. You jabronies need to let that be it's own issue.

I'm glad someone else notices it.

 

[Op2]

Well done. I wish he would have asked why college is so unnecessarily expensive though

I agree completely. College has gotten more expensive but has it gotten better? I doubt it, especially since there are more and more cheap or free online alternatives. College is ridiculously expensive.

 

[BobPSU92]

There is no one on this board that would turn down a monetary gift to reduce their debt - whether it be credit cards, student loans, mortgage, car loan. No one. And the first person(s) to step in line to get bailed out of their debt would be the person(s) who look to find fault in what this man is doing.

And only on this board would you find someone who find a way to a) complain about it, or b) try to tie it in to something they are unhappy about with PSU admin. You jabronies need to let that be it's own issue.

I would turn it down out of pride.

(Yeah, like I know a thing about pride. )

 

[psuro]

I would turn it down out of pride.

(Yeah, like I know a thing about pride. )

No, you really wouldn't.

 

[Nitwit]

Many students get out of PSU debt free due to those of us who have set up scholarships there. But what I can do there in my situation is just a drop in the bucket. All I know is the few I help every year a really thankful and they write me to tell me.

 

[Art]

FWIW:
And this has NOTHING to do with the generosity of the fella' making the donation - obviously - but PSU matriculaters graduate with more debt than graduates from any other BigTen University (about $40,000 per - about 20% MORE than the next most debt-ridden graduates, UMaryland).

Graduates of Morehouse average right around $30,000.....
But, since Morehouse graduates around 400 per year, the $40,000,000 comes out to about $100,000 per graduate.
So, clearly, something don't add up.

Now, those DoE figures ($30,000 per graduate) are based on the underwritten educational loans.
They do not include - obviously - money one may have "borrowed: from a parent.... personal loans... funds used for college expenses, that may have come from a Parent's Home Equity loan.... loans/gifts from friends or relatives.... debt taken on by parents....etc etc etc etc.

How is all that "stuff" is going to be processed? Stuff that accounts for the vast majority of the stated "debt forgiveness".... assuming the $40 Million figure is indeed correct (which I expect it is)
God only knows.

So - to put it mildly - this is going to be a logistical nightmare (And/or the "reports" are vastly misleading. Probably a bit of both. My guess is the $40,000,000 is donated to the University - - - - and the logistics are handled from that end, which is more than a little scary)

I doubt that there will ever be a "follow up" report done on how this all played out..... but I can just about guarantee there will be more than a few folks getting in line to question "why they didn't get more", or "where did the $$$ go".


And, especially if Obli is planning to comment, let me repeat …… this has NOTHING to do with the generosity of the fella' making the donation - obviously

First, the $40mm is someone's estimate, so we don't know how much it actually is/will be. As for the logistics, getting 80-90% of it ain't that hard. I'm sure they'll work out most, if not all, of the rest.