Nonprofits & Loan Search Websites Enter Student Loan Scandal
As if the first bout of scandal in the student loan industry was not enough to shake consumer confidence, a new wave of loan troubles are popping up all over the media—in organizations that purportedly want to help students:
Recent investigations into student loans seem to have spread into the nonprofit organizations, as well. In fact, long-standing nonprofit lender EduCap is currently being reviewed by the IRS. Apparently Catherine B. Reynolds, the accountant who helped the EduCap become a prominent name has received huge amounts of compensation—about $1 million a year. Company funds even paid for a jet that cost nearly $30 million, which she has allowed friends and relatives to use.
What’s more, the NY Attorney General’s office (the office who initiated the student loan investigations in the first place) is now reportedly looking in to several websites that have started up in response to the scandal. These sites claim to help students shop for the best loans on their own, but there are some concerns that they may have a financial interest in recommending certain lenders.
You cannot be too careful when searching out a student loan lender—declarations of good intentions, and even the seeming security of a “nonprofit” are not enough to prove that a lender really has your family’s best interest in mind.
All the best,
Deborah Fox
Deborah Fox is the founder of Fox College Funding, a nationwide company that helps families find creative ways to reduce their college costs.
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[...] briefly mentioned the problem of new “loan search websites” a few months ago, but unfortunately it seems that new conflicts keep popping up. In fact, the New [...]
[...] briefly mentioned the problem of new “loan search websites” a few months ago, but unfortunately it seems that new conflicts keep popping up. In fact, the New [...]