Snapchat CEO pays student loan worth $10mn for more than 250 new graduates

Snapchat CEO Evan Spiegel and his wife Miranda Kerr paid off the entire student debt worth $10 million of 285 graduates of Otis College of Art and Design in Los Angeles.

This makes it the highest donation in the college's history, Los Angeles Times reported.

Spiegel, the creator of Snapchat, the popular instant messaging app, became world’s youngest billionaire in 2015. He also took summer classes at Otis during high school.

Charles Hirschhorn, Otis president, gave the news to the graduating students during the commencement ceremony at the Westin Los Angeles Airport Hotel.

"We have one more gift for the class of 2022. We know most of you and your families shared the burden of student debt at a heavy price that you paid for an exceptional Otis college education...So we are pleased to announce that Evan and Miranda through their Spiegel Family Fund have made the largest single gift in the history of Otis college," Charles Hirschhorn said.

Spiegel and Kerr are founders of the Spiegel Family Fund. "The college is an extraordinary institution that encourages young creatives to find their artistic voices and thrive in a variety of industries and careers," they said in a statement.

 The Snapchat CEO and Miranda Kerr, founder of beauty brand Kora, offered their donation after the college wanted to award the couple honorary degrees and invited them as commencement speakers this year.

"It is a privilege for our family to give back and support the Class of 2022, and we hope this gift will empower graduates to pursue their passions, contribute to the world, and inspire humanity for years to come,” they said.

The donation comes at a time when more than 43 million Americans owe the federal government $1.6 trillion — an average $37,000 per person, which makes the biggest share of consumer debt in the US after mortgages.

In the US, student loan debt has soared in the last few decades, driven by rising college costs and less public funding.