Thursday, August 02, 2007

EduCap -- Follow-Up

By Bryan O’Keefe

As a follow-up to our earlier post, I just spoke over the phone with George Pappas, senior vice president for strategic partnerships at EduCap and Loan to Learn.

We are, of course, not taking a stand one way or the other on EduCap’s legal and business issues, beyond what we said in our earlier blog. But I thought that in the interest of being fair and balanced we would allow EduCap to at least have its say.

While not addressing the specific charges, Mr. Pappas said that the company “continues to believe that it adheres to all guidelines and regulations.” He said that the layoffs that the Post reported were “part of a restructuring” and that the company continues to service and originates loans.

He also defended EduCap more generally. “We are proud of the fact that we have helped thousands of kids go to school,” Mr. Pappas said. He added that private loans are often necessary for students since government backed loans have not kept up with the soaring cost of tuition.

Stay tuned for more on this issue...

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