Nation's leading education-loan guarantor addresses critical higher-education issues

USA Funds increases its commitment to higher-education access

INDIANAPOLIS — USA Funds^®, the nation's leading education-loan guarantor, reports that it has expanded its support of philanthropic activities that promote access to higher education. USA Funds today issued its 2003 annual report, which highlights USA Funds' initiatives that address the critical issues of preparation for postsecondary education, access to higher education and students' successful completion of their academic programs.

"Promoting financial access to higher education has been at the core of USA Funds' nonprofit mission throughout our 43-year history," said Carl C. Dalstrom, USA Funds president and CEO. "In addition to our guarantee of more than $16.7 billion annually in education loans to help students and their families pay college expenses, we devote significant resources to programs that help families overcome barriers — financial and otherwise — to higher education."

During 2003, USA Funds supported the following major education-access initiatives:

• Introduced USA Funds Unlock the Future^®, a multimedia early-awareness program that approximately 140 educational institutions, community agencies and faith-based organizations are using to encourage middle-school students and their families to prepare for higher education.

• Awarded or supported through grants to other organizations nearly $7 million in scholarships to help deserving students pursue postsecondary studies.

• Expanded to nearly 500 the number of postsecondary institutions that use the financial-literacy program USA Funds Life Skills^®. The program equips schools to teach their students time- and money-management practices that will permit them to graduate on time, with minimal education debt and prepared to repay the student loans that financed their education.

• Sponsored a program to help colleges, universities and vocational-technical schools enhance their student-retention and graduation rates and thereby curb education-loan default rates.

During the year, USA Funds committed a total of $14.7 million to philanthropic programs in support of education access.

"Through these and other initiatives, we believe that USA Funds is redefining the role of a guarantor from that solely of a student-loan administrator to one that serves as a true partner to educational institutions, federal and state governments, students and parents in promoting preparation for, access to and success in higher education," Dalstrom said.