Joint Statement by Treasury Secretary Henry M. Paulson, Jr.
and Department of Education Secretary Margaret Spellings

Continuing constraints in our capital markets have posed challenges for students and student lenders throughout the last year. We recognize that education is the foundation of a strong American workforce and we must not let challenges in our capital markets hinder our students' opportunities. Given these ongoing concerns, the Administration is taking a series of steps to support the student loan market.

Earlier this week, President George W. Bush signed H.R. 6889, the extension of the Ensuring Continued Access to Student Loans Act. We appreciate Congress providing the Department of Education, in coordination with the Treasury Department and the Office of Management and Budget, renewed temporary powers to use federal funds to ensure students and families continue to have access to student loans.

The loan purchase and participation interest programs implemented over the last few months have helped ensure that Federal student loans were available to students enrolling in postsecondary institutions for the 2008-2009 school year, and Federal student lending is exceeding last year's pace.

Our financing program has supported just over 40 percent of the Federal Family Education Loan Program (FFELP) loans that have been disbursed this year. Over 800 lenders have enrolled in our loan purchase program. Almost $51 billion of federally guaranteed loans have been originated for the current school year, up from approximately $45 billion for the same period last year.

Over the next few months, schools and lenders will be making decisions for the 2009-2010 school year. Using our newly extended authorities, the Administration is moving aggressively to support the continued availability of funding for federal student loans in the next school year with the goal of restoring the government guaranteed student loan market to normal operations. We are working on an expedited basis and will make further announcements in the coming weeks.

Treasury Announces Conclusion of Enrollment Period for Temporary Money Market Guarantee Program and Technical Correction

Washington- The Treasury Department announced today a technical correction that would permit additional money market funds to participate in Treasury's Temporary Money Market Fund Guarantee Program.  Funds that have a policy of maintaining a stable net asset value or share price that is greater than $1.00 and had such policy on September 19, 2008 are now eligible to participate, provided the fund meets all of the other original requirements.

The enrollment deadline for these funds that are now eligible as a result of this technical correction is 11:59 p.m. Washington, DC time on October 10, 2008. 

This technical correction does not extend the original deadline for funds that maintain a stable share price of $1.00 and that qualified under the program originally announced on September 29, 2008.  As previously announced, the enrollment period for Treasury's Temporary Money Market Fund Guarantee Program will close today at 11:59 p.m.  Eligible funds should ensure that the required documentation is delivered to Treasury by the deadline. 

Treasurer Anna Escobedo Cabral
Remarks at Launch of Multi-Media Campaign
to Help Young Adults Control Their Credit

Washington - Thank you, Dan. On behalf of Secretary Paulson, welcome to the Treasury Department. And welcome to the launch of our new multi-media campaign to help consumers understand more about their credit.

Credit can be a helpful tool for a healthy, prosperous financial existence. But all too often, many Americans fall prey to the pitfalls of not using credit wisely. This is especially true for young Americans who may have a less thorough understanding of credit and who tend to think less about the consequences of their financial decisions today.

In partnership with the Ad Council, Treasury has decided to take action. Today we launch a new campaign aimed at helping young adults think twice about their spending habits and how their behavior today can affect their credit history tomorrow.

The campaign, which targets 18-24 year-olds who are already in debt or about to get into unmanageable debt, will use Public Service Announcements to provoke a second thought or a pause when considering the true cost of a purchase. Our hope is that through this campaign, young adults will develop more thoughtful and conscientious spending habits.

As you will see, the PSAs end with the tagline "Don't let your credit put you in a bad place." And as we all know, poor credit history can do just that. It can cost you a job, car loan, apartment, or even cause public embarrassment.

The campaign includes new television spots, radio spots, web banners and a new web site. It also includes a radio spot in Spanish, and a Spanish-language version of the web site, which is very important.

These new PSAs from Treasury and the Ad Council will air in advertising time donated by the media.

In addition, the PSAs direct people to a new website: www.controlyourcredit.gov

On this new web site, visitors will find free financial information and tools, as well as play an interactive game, The Bad Credit Hotel, that explains the importance of having a good credit score.

I would like to thank Treasury's Office of Financial Education and its outreach team for working so diligently on this important campaign.

I would also like to say that we are pleased to partner with the Ad Council on this. Over the years, they have brought us Smokey the Bear, McGruff the Crime Dog, the Friends Don't Let Friends Drive Drunk campaign – just to name a few of their tremendously successful campaigns. And now, with the help of Lowe Worldwide, we hope that the Bad Credit Hotel will be included as another piece of their memorable collection.

To help us officially roll out the new campaign, I would like to introduce Ms. Kathy Crosby from the Ad Council.

Treasury Launches Multi-Media Campaign to Help Young Adults
Control Their Credit

Washington - The U.S. Treasury Department unveiled a new multi-media campaign today aimed at combating financial illiteracy among young adults. The ad campaign, featuring an interactive online game and radio and television spots, warns its audience, "Don't let your credit put you in a bad place."

"Many consumers need to better understand how to control their credit," said U.S. Treasurer Anna Escobedo Cabral. "It's especially important that we reach young adults with this information. Our research shows that the relationship between financial decisions made early in life and their credit scores too often remains a mystery for many young adults."

Presented in partnership with the Ad Council and created pro bono by Lowe Worldwide, the campaign is designed to encourage young adults ages 18 to 24 to take control of their credit. Radio spots and web content in English and Spanish demonstrate the consequences of developing bad credit at an early age, such as being declined future employment or denied a car loan. Every advertisement ends with the tag line, "Don't let your credit put you in a bad place."

"Consumers can face serious problems when they make uninformed choices about borrowing," said Dan Iannicola, Deputy Assistant Secretary for Financial Education. "The goal of this campaign is to equip Americans with the knowledge to take advantage of the positive aspects of credit, while avoiding its pitfalls."

The campaign features a new website, www.controlyourcredit.gov, where the audience can play an online game, The Bad Credit Hotel. The website also provides free financial information and tools.

The announcements will air in advertising time and space donated by the media.

Click here to watch the television spots and listen to the radio spots.

Media Advisory:
Treasury to Release Multi-Media Campaign to Teach Young Adults About Credit

The Treasury Department, in partnership with the Ad Council, will release a new multi-media campaign Tuesday aimed at combating the issue of financial illiteracy among young adults. The campaign includes television, radio and web banners, including a radio spot in Spanish. Department officials will preview the television and radio spots, as well as a new web site providing free financial information and tools.

WHO:	Treasurer Anna Escobedo Cabral Deputy Assistant Secretary for Financial Education Dan Iannicola, Jr.
WHAT:	Launch of Treasury Multi-Media Campaign on Credit
WHEN:	Tuesday, September 16, 9:30 a.m. EDT
WHERE:	Treasury Department Media Room (4121) 1500 Pennsylvania Avenue, NW Washington, D.C.
NOTE:	Media without Treasury press credentials should contact Frances Anderson at (202) 622-2960, or Frances.Anderson@do.treas.gov with the following information: full name, Social Security number, and date of birth.

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