Millers Seeks Federal Investigation Into Nonprofit Student Lenders

Abstract:

House Education and Labor Committee Chairman George Miller (D-CA) has requested the Government Accountability Office’s Forensic Audits and Special Investigations unit to open an investigation into the possible abuses by nonprofit loan providers of their tax-exempt status. Many have accused nonprofit lenders as acting like for-profit companies, according to a July, 16 Washington Post article.

But Catherine Reynolds, CEO of the nonprofit loan provider EduCap, argues that they follow all U.S. laws and that critics could “take it up with Congress” if they disagree.

They disagree, and now Congress is involved.

The full article was originally published in NASFAA’s Today’s News on 7/19/07.