Snap CEO Evan Spiegel is playing his part in solving the student debt crisis.

Here’s what you need to know.

Student loans

Spiegel, who co-founded Snapchat, and his wife Miranda Kerr, CEO of beauty brand KORA Organics, will repay all student loans for the Otis College of Art and Design Class of 2022. Spiegel and Kerr made the donation, which has not been disclosed but is believed to be worth more than $10 million, through the Spiegel Family Fund.

“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. “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. ”

Otis President Charles Hirschhorn announced the donation, which is the largest in school history, at the opening ceremony in Los Angeles. There are approximately 285 graduates in the class of 2022. Spiegel and Kerr as well as Bobby Berk, design expert and Emmy-nominated TV host of “Queer Eye,” received honorary degrees at the ceremony. Spiegel took lessons from Otis in high school before enrolling at Stanford.

“Otis College is extremely grateful for this historic, life-changing gift from Miranda Kerr and Evan Spiegel for the Class of 2022 and their families,” 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.

Otis will also use Spiegel and Kerr’s donation to create the Alternate Loan Debt Repayment Fund, which Otis will use to make charitable donations to graduate students with similar secured college loans outside of Otis College. . Otis is one of the most diverse colleges in the United States, with 77% of the student body identifying as a student of color. Over 90% of students receive financial aid.

Student loan forgiveness remains a hot topic, especially as President Joe Biden considers large-scale student loan forgiveness through executive action. Biden could cancel student loans within weeks, although there may be limits on who is eligible for student loan cancellation. There are 45 million student borrowers who owe over $1.7 trillion. In California, where Otis is based, 3.8 million student borrowers collectively owe $142 billion in student debt.

Student loan relief from the Covid-19 pandemic is set to end on August 31, 2022. For student borrowers not graduating from Otis this spring, it’s essential to know all of your loan repayment options student. Here are smart ways to pay off student loans and save money:

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