Snapchat co-founder pays off college debt for LA graduates

Yaritza Velazquez-Medina took a major turn in her career when she decided to quit her job as a crisis counselor in 2018 to pursue her artistic passions. She enrolled at the Otis College of Art and Design in Los Angeles to become a graphic designer — even though she racked up around $70,000 in college debt to do so.

But after crossing the stage on Sunday to receive her diploma during the opening ceremonies, she and 284 other graduates from the Class of 2022 received startling news: their college debt would be fully repaid thanks to the largest donation in the century-old history of school through Snapchat. co-founder Evan Spiegel and his wife, Miranda Kerr.

Charles Hirschhorn, chairman of Otis, made the announcement during the opening ceremony at the Westin Los Angeles Airport Hotel, prompting gasps and cheers from the audience.

Snap co-founder Evan Spiegel – whose creation of the popular instant messaging app with two former Stanford University classmates made him the world’s youngest billionaire in 2015 – has taken courses in summer at Otis in high school. He and his wife, Miranda Kerr, released a statement regarding the donation.

“The Otis College of Art and Design is an extraordinary institution that encourages young creatives to find their artistic voice and thrive in a variety of industries and careers,” said Spiegel and Kerr, founders of the Spiegel Family Fund. “It is a privilege for our family to give back and support the Class of 2022, and we hope this gift will empower the graduates to pursue their passions, contribute to the world, and inspire humanity for years to come. “

The donation comes as student loan debt has soared in recent decades, due to rising costs of college education and dwindling public funding to cover them. More than 43 million Americans owe the federal government $1.6 trillion — an average of $37,000 per person — which is the largest share of consumer debt in the United States after mortgages.

In California alone, 3.8 million residents owe $141.8 billion, the largest share of any state. Those who struggle the most with crippling debt are disproportionately low-income and underrepresented minority students and the first members of their families to attend college.

The financial burden hurts mental health, delays marriages, prevents homeownership and discourages new businesses, researchers have found. Widespread effects intensify pressure on Biden administration to craft student debt relief plan; one proposal under consideration is the federal cancellation of at least $10,000 of debt for people earning less than $125,000 a year.

The crisis has also prompted some donors to pay off student loan debt. In 2019, billionaire Robert Smith made national headlines when he announced he would cover the loan debt of the entire Morehouse College class by donating $34 million to the historically men’s school. black from Atlanta.

Hirschhorn did not reveal the size of the Spiegel family’s donation, but said it exceeded the college’s previous largest donation of $10 million. Spiegel and Kerr offered their historic gift after Hirschhorn told them the college wanted to award the couple honorary degrees and invited them this year as rookie speakers. The couple was not available for an interview.

“My reaction was euphoria,” Hirschhorn said. “Student debt weighs heavily on our diverse and talented graduates. We hope this donation will bring them much-needed relief and enable them to pursue their aspirations and careers, further this generosity, and become the next leaders of our community.

The private, nonprofit college, established in 1918 as the first professional art school in Los Angeles, educates about 1,200 students – 77% identifying as non-white and 30% as the first in their families to attend the ‘university. Diversity enriches the school’s creative output, with student creations featuring Black, Japanese, Persian, Mexican American and other cultural inspirations.

Annual tuition is $49,110 for 2022-23, and 92% of students receive financial aid. The college does not disclose average graduate loan debt.

Hirschhorn said 90% of graduates find employment in their field of study within six months of graduation and earn an average entry salary of around $50,000. The college offers programs in communication arts, digital media, environmental design, fashion design, fine arts, product design, and toy design. According to its annual report on California’s creative economy, the sectors directly employed nearly 1.4 million people and produced $687 billion in gross regional product in 2020, nearly a quarter of California’s output. State.

Farhan Fallahifiroozi emigrated with his family from Iran in 2015 to find better opportunities which he said were not available to them as members of the Baha’i minority. They landed in Texas, where he discovered a passion for fashion design in high school and took out over $60,000 in student loans to fund his four-year program at Otis.

The investment, he says, was well worth it. He found rigorous academic programs, caring mentors and industry connections – an internship at Abercrombie and Fitch, for example, and work on school projects with mentor Trish Summerville, the costume designer known for her Hollywood work on “Mank”, “The Hunger Games: Catching”. Fire” and “The Girl with the Dragon Tattoo”. He accepted a job offer in his main area of ​​interest, bridal design.

For Velazquez-Medina, the Spiegel family’s donation is a lifeline. Her $70,000 student loan debt isn’t something her working-class parents, who emigrated from Mexico, could help pay off, but she saw it as a worthwhile investment for herself and her passion for giving a creative voice to marginalized communities through design. Her school projects include a visual book on Spanglish and creative women. She lined up a paid internship with the libertine fashion brand in Hollywood.

Hope Mackey, who grew up in Las Vegas, always loved art – “I was that person who doodled in notebooks during math class,” they said. Mackey fell in love with Otis after visiting the school’s toy design floor during a college tour of California, but was nervous about the financial prospects of a career in the field, especially with the debt five-figure student loan amount needed to complete the program.

Now free of that debt, Mackey is excited to start a job at Mattel Inc. The graduate, who identifies as queer/trans, will work in the Barbie family division and dreams of developing non-binary dolls.

“I want every child to feel represented,” Mackey said.

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