July 24,2007

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Senators Seek Information from Education Loan Non-profit

WASHINGTON – Sen. Chuck Grassley, ranking member of the Committee on Finance, along with Sen. Max Baucus, committee chairman, have asked an education loan non-profit group a series of questions about its management, structure, and expenses. The inquiry to EduCap comes after The Washington Post reported on the group’s operations. Grassley and Baucus have a long history of promoting the integrity of the charitable sector with careful oversight of tax laws favoring charities. The senators continue to look for ways to increase transparency in the charitable sector, promote fairness in grant-making, and protect organizations that do so much good from unscrupulous behavior and exploitation.

“The head of this organization invited critics to ‘take it up with Congress.’ I look forward to EduCap providing a complete response to our questions so Congress can have an informed view of EduCap and the laws governing nonprofit organizations,” Grassley said. “The EduCap board, with leaders such as the former FBI director and former vice chairman of the Joint Chiefs of Staff, needs to provide the public and the Congress with a full explanation of the charity’s management and operations. The taxpayers and Congress need full confidence that public charity executives aren’t enjoying private jet vacations on the backs of students being charged 18 percent loan interest rates.”