Nonprofit Loan Group Will Scale Back Operations

Two weeks after The Washington Post revealed what it described as extravagant spending by EduCap, a nonprofit student-loan company, the organization has announced it will reduce the size of its lending operation, reports The Chronicle of Higher Education.

EduCap is under investigation by the Internal Revenue Service and Congress over whether it abused its tax-exempt status. A spokesman for the group told The Chronicle that EduCap was scaling back “due to the uncertainties in the student-loan industry and financial markets.” The spokesman said the restructuring was “unrelated” to the investigation.

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