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Robert Smith Breaks Down How Student Loans Drain 60% of Black Wealth · Earn Your Leisure

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  Speaker 2: Well documented they give back to the senior class of
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  Speaker 2: Worehouse and then I recently saw that the parents as
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  Speaker 2: well of some of the students.
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  Speaker 3: Their tuitions were their student loan debt.
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  Speaker 2: Also taking care of One of the things I heard
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  Speaker 2: you speak about, and I haven't I've never heard it
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  Speaker 2: was broadband deserts.
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  Speaker 3: Yeah, and how.
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  Speaker 2: HBCUs are disproportionately affected by having board band deserts not
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  Speaker 2: a topic that I've heard discussed, you know, nationally or
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  Speaker 2: even in you know, amongst communities, about how that affects
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  Speaker 2: students long term and how it affects communities and education.
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  Speaker 3: Can you talk about your efforts to try to combat that. Yeah,
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  Speaker 3: it's a great question.
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  Speaker 4: We've been talking about what is really the Fourth Industrial
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  Speaker 4: Revolution that's occurring today. Every industry is being digitized, every
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  Speaker 4: single one. I mean you just look in our studio
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  Speaker 4: here and how much of this equipment is now digital
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  Speaker 4: versus what it was even eight years ago where it
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  Speaker 4: was analog, right, The capacity to edit okay, the capacity
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  Speaker 4: to deliver streaming real time, you know, phase time around
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  Speaker 4: the world, your program that wasn't you know something you
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  Speaker 4: could do ten years ago, twelve years ago?
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  Speaker 3: Okay?
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  Speaker 4: Digitizing everything every industry. This is again, this whole fourth
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  Speaker 4: Industrial Revolution is changing the economic landscape of this planet.
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  Speaker 3: But yet our HBCUs eighty.
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  Speaker 4: Percent of them are in broadband deserts. How are you
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  Speaker 4: going to participate if you don't have access to the
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  Speaker 4: tool of progress the principal tool of progress today in
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  Speaker 4: the economy.
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  Speaker 3: And that is a big problem.
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  Speaker 4: And that's one that we decided to take on, and
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  Speaker 4: I decided to take on and bring some partners to
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  Speaker 4: take on.
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  Speaker 3: To go get after this. We have to enable all
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  Speaker 3: of our.
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  Speaker 4: Citizenry to participate in this next generation of opportunity. The
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  Speaker 4: US today, you own, our borders are basically closed, okay,
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  Speaker 4: you know, we've got immigration laws and political conflict that
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  Speaker 4: in essence, we are not importing labor anymore. And as
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  Speaker 4: we need to grow as society, we need people. I
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  Speaker 4: just tell people the biggest issue, the most scarce asset
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  Speaker 4: we have on this planet today are software programmers. There's
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  Speaker 4: eight billion people on the planet. There's only twenty six
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  Speaker 4: million of us who write software.
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  Speaker 3: For a living.
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  Speaker 4: And it is that software that is required to digitize
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  Speaker 4: every industry on the planet. Automotive, healthcare, demands thanking, all
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  Speaker 4: of it is now requiring tools and systems that are.
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  Speaker 3: Digital in nature.
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  Speaker 4: But yet one of the greatest infrastructures for training people
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  Speaker 4: historically black college and universities eighty percent of them don't
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  Speaker 4: have broadband access where our kids can learn the tools
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  Speaker 4: of this craft in a way that they can participate
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  Speaker 4: effectively long term. And if we don't get this right now,
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  Speaker 4: eight years from now, ten years from twenty years from now,
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  Speaker 4: the market of change and opportunity and transformation will have
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  Speaker 4: been gone so far that we won't be able to
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  Speaker 4: participate in this next way. We didn't get to participate
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  Speaker 4: in the great economic opportunity that was America in owning
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  Speaker 4: land okay. Many of our families were unpaid labor okay, which.
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  Speaker 3: Created massive wealth.
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  Speaker 4: And then you had gi Bill Home Set Act, Southern
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  Speaker 4: Home Set Act. We didn't participate in that proportionately. We
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  Speaker 4: didn't get a chance to participate in the asset accretion
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  Speaker 4: in real estate because of redlining in those dynamics. And
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  Speaker 4: so now here we are corporate America started to expand.
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  Speaker 3: It has taken a while for us to get and.
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  Speaker 4: We're still not even there fair share of opportunity to
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  Speaker 4: participate as professionals environment and now you're going through the
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  Speaker 4: fourth Industrial Revolution. If we don't participate here, it's going
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  Speaker 4: to be the same dynamic. That's why it's so essential
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  Speaker 4: that we equip our children and our communities with the tools,
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  Speaker 4: and they need to insist that those tools be provided
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  Speaker 4: and insist that they learn and train and develop ways
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  Speaker 4: to participate in this economy, in this digital economy, what
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  Speaker 4: percentage of your viewership you think is listening on some
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  Speaker 4: digital device or digitalment ablement Yeah, your business relies on it,
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  Speaker 4: so why shouldn't your community participate in it? And right
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  Speaker 4: now those schools are being starved at those resources. You
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  Speaker 4: can say conscious, unconscious, whatever it is, but the fact
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  Speaker 4: is it is there. That's what we have to do
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  Speaker 4: about it. Look, I'm going to do my part. You
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  Speaker 4: guys got to continue to your part and make sure
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  Speaker 4: that your viewership demands that our HBCUs have access to broadband,
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  Speaker 4: every one of them, not just the big ones, every
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  Speaker 4: one of them, so that our kids could learn and
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  Speaker 4: participate and have the ability to now take what they
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  Speaker 4: know and deliver business systems solutions into their community to
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  Speaker 4: make their small and medium businesses in their community and
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  Speaker 4: the education of the kids in our community more effective
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  Speaker 4: than what it is today.
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  Speaker 5: I want to just follow up on that on the
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  Speaker 5: HPCU thing, because you got a lot of headlines when
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  Speaker 5: you do more house, when you paid off the student loans.
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  Speaker 5: But when we were in LA and I heard you
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  Speaker 5: speak about that, and I realized that it wasn't It's
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  Speaker 5: a little bit more complicated, which actually led to something else,
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  Speaker 5: another initiative. So can you talk about that because people
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  Speaker 5: just saw he paid off everybody student loans.
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  Speaker 3: But that's not actually the full story, right, Yeah, So
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  Speaker 3: the next thing, so what I.
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  Speaker 4: Hell, Like all things, it's not as easy as you
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  Speaker 4: think to pay off somebody's loans.
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  Speaker 3: And everybody's like, what are you talking about? Who would
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  Speaker 3: have thought?
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  Speaker 4: Because yeah, whould have thought, right, Because if you pay
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  Speaker 4: off somebody's loan, either you're giving them a gift orther
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  Speaker 4: they're receiving a gift. Now they got to pay taxes
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  Speaker 4: on it. So there's a burden to them or an
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  Speaker 4: increasing burden to you. So you've got to actually architect
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  Speaker 4: a system to do that effectively so that doesn't create
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  Speaker 4: the burden in that process. What I learned is over
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  Speaker 4: sixty percent of African American wealth.
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  Speaker 3: Goes towards servicing student loans.
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  Speaker 4: Okay, you come out, you've got sixty eighty one hundred
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  Speaker 4: and twenty thousand dollars with the student loans.
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  Speaker 3: Now you're paying interest on those loans.
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  Speaker 4: Something happens in your family to use your job, whatever,
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  Speaker 4: and now that compounds and it can be decades before
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  Speaker 4: you've paid off those student loans. That inhibit you're a
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  Speaker 4: ability to buy stocks, bonds, a house, invest in a business.
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  Speaker 4: You see what I mean, and I was like, well,
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  Speaker 4: that's just unconstable because most of the student loans are
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  Speaker 4: paying back to the United States government. Yeah, African Americans
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  Speaker 4: paying money back to United States government to pay our
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  Speaker 4: student loans.
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  Speaker 3: How y'all feel about that? That's crazy?
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  Speaker 4: Crazy, Yeah, y'all should think about that, right, talk about that, right.
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  Speaker 4: So then I thought, well, what's a better way to
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  Speaker 4: do it? This is what's the better equilibrium system. The
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  Speaker 4: better equilibrium system is to create a fund. It's called
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  Speaker 4: the Student Freedom Initiative. We raise money, I put in
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  Speaker 4: a bunch of money, and now these students borrow from
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  Speaker 4: the fund.
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  Speaker 3: Okay, let's make.
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  Speaker 4: Sure it fits our condition. Our condition often is that
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  Speaker 4: we often aren't paid as much as corresponding white students.
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  Speaker 4: So let's make sure that the interest rate is below
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  Speaker 4: parent plus loans.
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  Speaker 3: At a minimum, at a minimum and every now and
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  Speaker 3: you have life interruptions.
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  Speaker 4: Okay, Well, if there's a life interruption, you know, parent ailing,
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  Speaker 4: we've got to go back take care of that parent.
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  Speaker 4: Then we can actually stop those payments in that period
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  Speaker 4: of time. Parent plus now you're gonna pay whether you
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  Speaker 4: work it or not. And then compounds and all that,
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  Speaker 4: so you can stop it during that period of time.
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  Speaker 4: And if you decide to go work in a community
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  Speaker 4: to be a teacher like you were, right, okay, and
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  Speaker 4: you're making below a certain amount, but you're doing good
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  Speaker 4: for the community. You do that for twenty years and
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  Speaker 4: that's forgiven. But rather than pay that money back to
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  Speaker 4: the government, it pays back into the fund and then
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  Speaker 4: that fund can relend that capital and that's.
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  Speaker 3: A virtuous cycle. Okay.
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  Speaker 4: So that's a student Freadom initiative, is okay, And so
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  Speaker 4: that our students can borrow from this fund and they
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  Speaker 4: pay back into that fund.
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  Speaker 3: They can be reborrowed.
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  Speaker 4: So now you're taking care of your own community through
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  Speaker 4: your work in that regard, that's what it is.
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  Speaker 5: And the money goes back to the next generation of students, right,
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  Speaker 5: my graduates from my school being false.
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