Students at Morehouse college in Atlanta were left stunned when a billionaire technology investor told them he would wipe out their $40m (£31.4m) debts.
With the students already in a celebratory mood when receiving their degrees at their end-of-year ceremony, they were sent into complete pandemonium when the commencement speaker Robert F Smith made the surprise announcement.
The investor and philanthropist – who founded his own private equity firm – said: “On behalf of the eight generations of my family that have been in this country, we’re gonna put a little fuel in your bus. This is my class, 2019, and my family is making a grant to eliminate their student loans.”
The donation is the single largest gift ever received by the college, with the students graduating with an average debt of between $30,000 (£23,563) and $40,000 (£31,417).
Mr Smith, the chief executive of his Vista Equity company, had already announced a $1.5m (£1.2) gift to the school when he made his announcement, which came as he received an honorary decorate.
He said, “Because we are enough to take care of our own community, we are enough to ensure that we have all the opportunities of the American dream.”