NEW YORK, Aug. 2 (UPI) -- Nonprofit loan company EduCap is considering shutting down business in lieu of a U.S. investigation into whether it has abused its tax-exempt status.
EduCap, which pioneered the $17 billion-a-year private student loan industry, has laid off numerous workers and plans to continue with the firings as business winds down, The Washington Post reported Thursday.
The company claims to just help students pay for college but critics said that its nonprofit status hasn't helped students receive better loans.
Investigators have also reported that the U.S. Education Department failed to adequately oversee student loan programs, leading to a possible investigation into kickbacks from a loan company to university athletic departments.
New York state Attorney General Andrew Cuomo said Wednesday that his office had served numerous athletic departments with subpoenas and records requests.
