Economics
We Can Free a Generation From Burden of College Loan Debt
The reaction — shock, joy, disbelief, euphoria — revealed the importance of Robert F. Smith’s stunning gift, when he announced, unexpectedly, that he would pay off all the college debts of Morehouse College students graduating this year.
His gift literally changed the prospects and the lives of the vast majority of those 396 graduates.
Morehouse is a proud, historically black college, the alma mater of extraordinary leaders like Dr. Martin Luther King, Julian Bond, Howard Thurman, Maynard Jackson, former head of Homeland Security Jeh Johnson, former head of the black caucus Cedric Richmond, Hollywood legends Samuel L. Jackson and Spike Lee, Olympic champion Edwin Moses and many more.
Full-time tuition costs $25,368, with room and board and other expenses, a year at Morehouse can cost nearly $50,000. Ninety percent of Morehouse students get some kind of financial aid, cobbling together Pell grants, federal and private loans, family loans and more.
Morehouse seniors who borrow to pay for college carry an average of $26,000 in federal student loans. Private loans, federal Parent Plus loans, credit card and other debts are on top of that. The federal student loans alone would result in a monthly payment of $276.
Robert F Smith’s generosity has literally transformed the lives of those students. Now instead of putting off graduate school or being forced to live at home, and later postponing marriage and children, they are free to benefit from the hard work they have done to graduate from college. They can seek jobs that they want without being forced to take one or more that can help them pay down their loans. They are free to dream.
Many of those benefiting from Smith’s remarkable generosity expressed what one student, Myles Washington, called a “level of survivor’s guilt.” All had friends who could not afford to go to college, or who were forced to withdraw early in the face of growing debts.
Robert F. Smith is a billionaire, the brilliant founder of Vista Equity Partners, who has made a fortune largely in purchasing and selling software firms. Raised in Denver, the child of two parents with Ph.D.s, he graduated from Cornell and later got his MBA at Columbia. His gift to the Morehouse students is only a small part of his philanthropy, which has included major support for Cornell, his alma mater, and for the National Museum of African American History and Culture, as well as his service as chair to The Board of Carnegie Hall and much more.
With this gift, he has set a standard for others of great wealth. He has, as he put it at the Morehouse commencement, “paid it forward,” by freeing the potential of young graduates.
His gift should also rouse Congress to redress the folly of shackling the best of the young generation with often unpayable debt simply to get the education this country says they need.
Student loan debt now totals over $1.5 trillion. After home mortgages, it is the largest source of debt, exceeding car loans and credit card debts. Almost two-thirds of all students are forced to borrow to pay for college; they end with an average debt of nearly $29,000. The debt of African-American students is, on average, $7,400 more than that of white students, reflecting the wealth gap that has built up over years of slavery, segregation and housing and employment discrimination.
Democratic presidential candidates like Sen. Elizabeth Warren (D-MA) and Sen. Bernie Sanders of Vermont are calling for making public colleges tuition-free. Warren has put forth a detailed plan to pay off a substantial portion of existing student loans. Some like Sen. Amy Klobuchar (D-MN) say we can’t afford to do that. But we are a wealthier country than Germany, yet college there is free.
This is a question of priorities not resources. The number of corporations that pay nothing in taxes has doubled under Donald Trump’s tax cut. The cost of that tax cut, most of which went to the already wealthy, is estimated at $1.7 trillion over 10 years. That alone would have been able to pay off all current student debts.
Robert Smith’s generous promise should goad all of us into action. It is a personal tragedy and a national folly to burden an entire generation with often unpayable loans simply to get an education. We all benefit from a well-educated, active population. We all suffer when an entire generation is locked into debt from the day they get out of college.
Smith has freed nearly 400 Morehouse graduates from that burden. We should demand that Congress act to offer every student that relief.
Activism
Oakland Post: Week of October 30 – November 5, 2024
The printed Weekly Edition of the Oakland Post: Week of October 30 – November 5, 2024
To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.
Business
Special Interview: Rep. Barbara Lee Discusses Kamala Harris’ Plan for Black Men
On Oct. 16, California Black Media (CBM) spoke with Harris-Walz campaign surrogate, Congresswoman Barbara Lee (D-CA-12), who shared more insights on Harris’ agenda and the importance of securing the Black Male vote. “She has said very clearly that she wants to earn the vote of everyone. And that means earning the vote of Black men,” said Lee of Harris. “She understands the systemic and historic challenges that Black men have. You haven’ t heard of a presidential candidate coming up with a concrete actual plan and policy agenda.” The agenda includes five focus areas based on insights she gleaned from hosting discussions with Black men during her Economic Opportunity Tour.
By Edward Henderson, California Black Media
Last week, the Kamala Harris campaign released its Opportunity Agenda for Black Men.
On Oct. 16, California Black Media (CBM) spoke with Harris-Walz campaign surrogate, Congresswoman Barbara Lee (D-CA-12), who shared more insights on Harris’ agenda and the importance of securing the Black Male vote.
“She has said very clearly that she wants to earn the vote of everyone. And that means earning the vote of Black men,” said Lee of Harris. “She understands the systemic and historic challenges that Black men have. You haven’ t heard of a presidential candidate coming up with a concrete actual plan and policy agenda.”
The agenda includes five focus areas based on insights she gleaned from hosting discussions with Black men during her Economic Opportunity Tour:
- Provide 1 million loans that are fully forgivable to Black entrepreneurs and others disadvantaged groups to start businesses.
- Champion education, training, and mentorship programs that help Black men get good-paying jobs in high-demand industries It will also develop more accessible pathways for Black men to become teachers.
- Support a regulatory framework for cryptocurrency and other digital assets so Black men who invest in and own these assets are protected.
- Launch a National Health Equity Initiative focused on Black men that addresses sickle cell disease, diabetes, mental health, prostate cancer, and other health challenges that disproportionately impact them.
- Legalize recreational marijuana and creating opportunities for Black Americans to succeed in this new industry.
“[Vice President Harris] knows that Black men have long felt that too often their voice in our political process has gone unheard and that there is so much untapped ambition and leadership within the Black male community,” the language in the agenda states. “Black men and boys deserve a president who will provide the opportunity to unleash this talent and potential by removing historic barriers to wealth creation, education, employment, earnings, health, and improving the criminal justice system.”
Diving into Harris’ agenda, Lee says, reminded her of her own record of supporting Black men over the years as an elected official. In the 90’s, she established the first California Commission on African American Males through which she pressured the state to address urgent economic, health and social challenges specific to Black men.
“No group of people are a monolithic group of people,” said Lee She’ s not taking any vote for granted. I’ve known her over three decades and I believe she is being herself. She’ s authentic,” Lee added.
Each of the 5 key points addressed in the Harris Campaign’s agenda, Lee says, has additional clauses that can potentially help Black men and their families thrive. This includes lowering rent; up to $25,000 in downpayment help for first time homebuyers; and cutting taxes for Black men in lower-wage jobs by increasing the Earned Income Tax Credit maximum to $1,500.
“I think the messages is one of empowerment for Black men — regardless of whether they’ re a blue-collar worker, if they’ re not working, if they’ re in business, if they’ re an entrepreneur, whatever background or whatever they’re doing or experiencing life. I think the authenticity of their experience can only be articulated through them,” said Lee.
Activism
Oakland Post: Week of October 23 – 29, 2024
The printed Weekly Edition of the Oakland Post: Week of October 23 – 29, 2024
To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.
-
Alameda County5 days ago
Alameda County District Attorney Pamela Price Announces $7.5 Million Settlement Agreement with Walmart
-
Activism3 weeks ago
COMMENTARY: DA Price Has Done Nothing Wrong; Oppose Her Recall
-
Activism2 weeks ago
OP-ED: Hydrogen’s Promise a Path to Cleaner Air and Jobs for Oakland
-
Activism3 weeks ago
Barbara Lee, Other Leaders, Urge Voters to Say ‘No’ to Recalls of D.A. Pamela Price, Mayor Sheng Thao
-
Activism3 weeks ago
Oakland Post: Week of October 9 – 15, 2024
-
Community2 weeks ago
Terry T. Backs Oakland Comedy Residency by Oakland’s Luenell at Jimmy Kimmel’s Comedy Club in Las Vegas
-
Business2 weeks ago
Study Confirms California’s $20/Hour Fast Food Wage Raises Pay Without Job Losses
-
Activism3 weeks ago
Surge of Support for Vote ‘No’ on Recall of Mayor Sheng Thao