Bad Debt Causes More College Drop Outs than Bad Grades
State Farm® to Fund Special Financial Literacy Program to Help Address Problem

Washington, DC, April 7, 2008 During a time when university administrators say they lose more students to credit card debt than to academic failure, financial experts say young people must be given more opportunities to learn and develop good financial habits. 

State Farm, in partnership with The National Service-Learning Partnership at the Academy for Educational Development, will provide State Farm Good Decision™ Credit Awareness Initiative grant awards of $12,500 to a school district or community-based organization working with at least five schools in the following cities:

• Austin, Texas
• Chicago, Ill.
• Denver, Colo.
• Orlando and Miami, Fla.
• Indianapolis, Ind.
• Nashville, Tenn.
• Philadelphia, Penn.
• Tulsa, Okla.

With the application process already underway, the State Farm Companies Foundation funded grants, support the implementation of service-learning activities designed to promote academic learning and financial literacy, with a strong emphasis on understanding credit and credit cards. 

Service-learning is a teaching method that engages students in solving problems within their schools and communities as part of their academic studies. In the spirit of our commitment to education excellence, State Farm supports service-learning as a way to promote student achievement and community development.

“Service-learning helps students master important curricular content by making meaningful connections between what they study in the classroom and its many applications in the real world,” said Nelda Brown, Executive Director of the National Service-Learning Partnership.  “We applaud State Farm for its leadership and commitment to helping students achieve academically and prepare them for productive adult lives.” 

“We believe this initiative will help promote an understanding of the wise use of credit so that more people have the chance to realize and enjoy the American dream,” said Lori Manning, State Farm Bank Community Reinvestment Officer.  “Those who understand credit and use it wisely often make their dreams of higher education and home ownership come true sooner than those who do not understand or misuse credit.”

Participating sites for for the 2008-2009 school year have already been selected.  Stay tune for new tools and resources to be released in spring 2009.