Bad Debt Causes More College Drop Outs Than Bad Grades

New Funding Opportunity for Local Schools and Communities

Bloomington, Illinois, March 9, 2007 – During a time when university administrators say they lose more students to credit card debt than to academic failure, young people must be given more opportunities to learn and develop good financial habits. 

With support from State Farm Bank® and the State Farm Companies Foundation, the National Service-Learning Partnership at the Academy for Educational Development will provide $2,500 grant awards to a school or community-based organization to set up hands-on problem solving activities that promote an understanding of credit and credit cards. 

This work is called “service-learning.”  Service-learning is a teaching method that engages students in solving problems within their schools and communities as part of their academic studies.

Students, teachers, and their community partners from 20 schools will be selected to create innovative service-learning activities designed to address financial literacy in their own communities.  Awards of up to $2,500 will be made to five schools within four target cities—Chicago, Ill.; Denver, Colo.; Houston, Texas; and the District of Columbia.  Only one award will be issued per school, but that award can support multiple projects within a school community. 

“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,” said Lori Manning, State Farm Bank Community Reinvestment Officer.  “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.” 

In the spirit of its commitment to education excellence, State Farm supports service-learning as an innovative way to promote student academic 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.  With support from State Farm, more young people and their neighbors will gain the knowledge and skills necessary to establish a firm financial footing in life and will fulfill the dreams they have for themselves and their families.”  

Applications are now being accepted for the 2007-2008 school year.  The deadline is July 1, 2007.  For more information and to download an application, visit the National Service-Learning Partnership Web site at www.service-learningpartnership.org.

About State Farm:  State Farm® insures more cars than any other insurer in North America and is the leading U.S. home insurer. State Farm's 17,000 agents and 68,000 employees serve over 75 million auto, fire, life and health policies in the United States and Canada, and more than 1.6 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No.22 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca®.

About the National Service-Learning Partnership: The National Service-Learning Partnership at the Academy for Educational Development is a grassroots network of more than 10,000 members from all 50 states and U.S. territories.  The Partnership connects and mobilizes youth, teachers, parents, administrators, policymakers, education leaders, community partners, businesspeople, and researchers dedicated to advancing service-learning as a core part of every young person’s life and education. 

Banking products and services are provided by State Farm Bank®, Bloomington, Illinois, a Member FDIC and Equal Housing Lender. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and subject to investment risk, including possible loss of principal invested.