Recent Study Suggests Credit Card Debt Leads to a Higher College Drop-Out Rate Than Academic Failure

Posted On: August 24, 2005

Operation Hope (OHI), a national non-profit self-help organization, and Citigroup are helping high school and college students avoid common financial mistakes and credit card debt through the Banking on our Future program. Operation Hope recently released a study indicating that many university administrators believe that credit card debt leads to a higher drop-out rate than academic failure. The study commissioned by OHI, “The State of Financial Literacy Amongst Young African-American Adults in America”, was administered by Dr. Lewis Mandell and the Jump$tart Coalition.

John Bryant, Operation Hope’s Founder and CEO, and Dara Duguay, Director of Citigroup’s Office of Financial Education in Washington, D.C., are advising students not to fall victim to credit card debt and to seek opportunity, stay positive and make smart choices with their money. They hope to promote financial literacy and to empower young people. Such topics as the power of credit, banking investments, along with the basics of banking, such as how to open and maintain a checking and savings account, are addressed.

John Bryant of Operation Hope said:

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“We live in a nation where nearly one-third of high school seniors have credit cards, even more have debit cards, and an average of 1.5 million families file for personal bankruptcy each year. The need for personal financial literacy rings loud and clear.”

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OHI’s outreach efforts are being funded in part by Citigroup’s new initiative to promote financial education. In February, Citigroup announced a $500,000 grant to expand the ‘Banking on our Future’ program to reach 10,000 students in seven major U.S. cities. In addition, Citigroup employees volunteer as banker-teachers to educate students attending the seminars. To date, ‘Banking on our Future’ has served 140,000 students nationwide.

Dara Duguay, Director of Citigroup’s Office of Financial Education said:

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“We are pleased to support Operation Hope and the expansion of a program that empowers so many young people in underserved communities to become more knowledgeable about personal finance. At Citigroup, we are dedicated to providing quality financial education programs to help people learn how to build their financial lives. We believe that providing financial education to students today will help build strong communities tomorrow.”

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John Bryant added:

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“‘Banking on our Future’ is part of Operation Hope’s Silver Rights Movement to eradicate poverty by empowering the underserved. The Silver Rights Movement is aimed to continue and build upon the work of Dr. Martin Luther King, Jr., and the famed Civil Rights movement,by educating minorities, low-income families and youth on financial empowerment.”

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In addition, Mr. Bryant noted:

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“There is a difference between being broke and being poor. To be broke is a temporary economic condition, and to be poor is a disabling state of mind and spirit. We must vow never to be poor again.”

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