2018-08-03T18:17:56-05:00 2017-09-30 330835986 SQUAR MILNER LLP 15760 VENTURA BLVD SUITE 1100 ENCINO CA 91436 990 2016-10-01 521509402 EDUCAP INC EDUC 7036744718 45610 WOODLAND ROAD NO 440 STERLING VA 20166 MATTHEW MURRAY CHIEF FINANCIAL OFFICER 7036744718 2018-08-02 1 SHASHI MIRPURI P00874030 8189812600 2016 2022-09-23 18:48:47Z CATHERINE B REYNOLDS FOUNDATION CATHERINE B REYNOLDS 45610 WOODLAND ROAD NO 440 STERLING VA 20166 10726692 0 X WWW.EDUCAP.ORG X 1986 MD SEE PART III, LINES 1, 4A AND 4B. 6 4 17 0 37942 17873 0 0 14625354 10418983 90195 140119 201928 167590 14917477 10726692 3028803 3920328 0 0 3045429 2850286 0 0 0 5751277 5361173 11825509 12131787 3091968 -1405095 138360237 125257228 82311940 68823241 56048297 56433987 X TO HELP STUDENTS GAIN ACCESS TO FUNDS TO PAY FOR COLLEGE COSTS AND TO SUPPORT A VARIETY OF PHILANTHROPIC PROGRAMS. 0 0 7160537 10418983 1. TO RECEIVE AND ADMINISTER FUNDS FOR RELIGIOUS, SCIENTIFIC, EDUCATIONAL, AND CHARITABLE PURPOSES WITHIN THE MEANING OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS THE SAME MAY BE AMENDED FROM TIME TO TIME ("THE CODE").2. TO CARRY ON A VARIETY OF PROGRAMS RELATING TO, AMONG OTHER THINGS, THE LENDING OF FUNDS TO OR FOR THE BENEFIT OF STUDENTS, FACULTY AND STAFF OF EDUCATIONAL INSTITUTIONS AND OTHERS FOR EDUCATIONAL PURPOSES, INCLUDING SERVICING AND ADMINISTERING STUDENT LOAN PORTFOLIOS.3. TO ADMINISTER PROGRAMS WHEREBY OTHER GOVERNMENTAL OR NONGOVERNMENTAL ENTITIES LEND FUNDS TO OR FOR THE BENEFIT OF, AMONG OTHERS, STUDENTS, FACULTY AND STAFF OF EDUCATIONAL INSTITUTIONS AND NON-PROFIT INSTITUTIONS, IN FURTHERANCE OF RELIGIOUS, SCIENTIFIC, EDUCATIONAL OR CHARITABLE PURPOSES.4. TO DO ANY OTHER ACT OR THING INCIDENTAL TO OR CONNECTED WITH THE FOREGOING PURPOSES OR IN ADVANCEMENT THEREOF.EXEMPT PURPOSE ACHIEVEMENTS:A. EDUCAP INC. HAS PROVIDED OVER $2,500,000,000 IN EDUCATIONAL LOANS TO OVER 350,000 AMERICANS. THESE FUNDS HAVE ALLOWED THESE INDIVIDUALS THE OPPORTUNITY TO FURTHER THEIR EDUCATION AND MEET THE RISING COST OF OBTAINING A HIGHER EDUCATION.TODAY, EDUCAP INC. ADMINISTERS MULTIPLE LOAN PROGRAMS AND SERVICES APPROXIMATELY $136,000,000 IN EDUCATIONAL LOANS FOR OVER 13,700 STUDENTS.IN ORDER TO RECEIVE A LOAN, THE STUDENT MUST BE ACCEPTED FOR ENROLLMENT FULL TIME OR PART TIME IN AN ACCREDITED COLLEGE, UNIVERSITY OR PRIVATE SECONDARY SCHOOL APPROVED BY EDUCAP INC. FOR THE LOAN PROGRAM UNDER WHICH THE APPLICATION IS BEING MADE.THE BORROWER OR COSIGNER MUST:BE CREDIT WORTHY AND BE A U.S. CITIZEN OR PERMANENT RESIDENT ALIEN OR HAVE A CREDITWORTHY COSIGNER WHO IS A U.S. CITIZEN OR PERMANENT RESIDENT ALIEN.BE 18 YEARS OF AGE OR OLDER AT THE TIME OF APPLICATION (19 IN ALABAMA AND NEBRASKA, 21 IN MISSISSIPPI AND PUERTO RICO).HAVE NO ADVERSE PUBLIC RECORDS (E.G., COLLECTIONS, TAX LIENS, ETC.) ON THEIR CREDIT REPORTS.HAVE AN ACCEPTABLE BANKRUPTCY SCORE ASSIGNED BY A CREDIT REPORTING AGENCY.HAVE AN ACCEPTABLE CREDIT SCORE (AS DETERMINED BY EDUCAP INC.'S CREDIT SCORING MODEL) FOR THE LOAN PROGRAM UNDER WHICH THE APPLICATION IS BEING MADE.HAVE NEVER DEFAULTED ON A STUDENT LOAN.SUBMIT INCOME VERIFICATION DOCUMENTS.MAXIMUM LOAN AMOUNTS ARE BASED ON:SCHOOL COSTSINCOME AND DEBT TO INCOME RATIO 3920328 3920328 TO MAKE GRANTS TO OTHER 501(C)(3) ORGANIZATIONS IN FURTHERANCE OF ITS MISSION, FOCUSED UPON FOSTERING AN EDUCATED CITIZENRY THROUGH SUPPORT OF EDUCATION, THE ARTS, RESEARCH AND A VARIETY OF OTHER CHARITABLE AND EDUCATIONAL ACTIVITIES.DURING ITS FISCAL YEAR ENDING SEPTEMBER 30, 2017, EDUCAP INC. HAS MADE GRANTS TOTALING $3,920,328 AND HAS PAID OUT $4,577,000 IN CASH CONTRIBUTIONS TO 20 DIFFERENT CHARITABLE ORGANIZATIONS EXEMPT FROM FEDERAL INCOME TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. 11080865 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 1 1 0 0 0 0 1 0 0 0 0 1 87 0 1 17 1 1 1 1 CJ CA EI 0 0 0 0 0 0 0 0 X 6 4 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X EDUCAP INC 7036744718 45610 WOODLAND ROAD SUITE 440 STERLING VA 20166 CATHERINE REYNOLDS CHAIRMAN & CEO 40.00 X X 679975 0 49535 WAYNE REYNOLDS DIRECTOR 2.00 X 0 0 0 JOSEPH RALSTON DIRECTOR 2.00 X 0 0 0 WILLIAM SESSIONS DIRECTOR 2.00 X 0 0 0 STEPHEN GLOVER DIRECTOR 2.00 X 0 0 0 MARGERY KRAUS DIRECTOR 2.00 X 0 0 0 MATTHEW MURRAY CHIEF FINANCIAL OFFICER 50.00 X 328524 0 39206 PATRICIA JEAVONS CONTROLLER 40.00 X 158988 0 18028 MARCUS MAIORCA VICE PRESIDENT OF PORTFOLI 40.00 X 143232 0 22078 MICHAEL WARE VICE PRESIDENT OF OPERATIO 40.00 X 140602 0 22208 VANESSA MOORE EXECUTIVE ASSISTANT TO CHA 40.00 X 116295 0 12576 ETHEL TERRADO-LOWE DIRECTOR OF NEW MEDIA & DE 40.00 X 116741 0 21296 1684357 0 184927 7 0 1 0 FISERV 75 REMITTANCE DR STE 6955 CHICAGO IL 606756955 PROCESSING SERVICES 733704 NELNET 121 SOUTH 13TH STREET SUITE 201 LINCOLN NE 68508 PROCESSING SERVICES 392709 WILLIAMS & CONNOLLY LLP 725 12TH ST NW WASHINGTON DC 20005 LEGAL SERVICES 292049 MINDSHIFT TECHNOLOGIES INC 309 WAVERLEY OAKS RD 404 WALTHAM MA 02452 IT CONSULTING 134247 SQUAR MILNER LLP 4100 NEWPORT PLACE DR STE 600 NEWPORT BEACH CA 92660 AUDIT AND TAX SERVICES 118697 5 INTEREST ON LOANS 525990 10371893 10371893 ADMINISTRATION FEES 525990 47090 47090 10418983 140119 37942 102177 REIMBURSED EXPENSES 541900 167590 167590 167590 10726692 10418983 37942 269767 3920328 3920328 1268025 1014420 253605 1108306 820513 287793 85531 63321 22210 263505 195081 68424 124919 92481 32438 301524 286509 15015 130046 96277 33769 93613 93613 64071 57701 6370 65903 48790 17113 155301 114974 40327 220796 163462 57334 199172 147453 51719 948726 948726 37196 27537 9659 165672 122652 43020 COLLECTION FEES 1294740 1294740 0 SERVICING FEES 1105808 1105808 0 PROVISION FOR CREDIT LO 404180 404180 0 PROGRAM SUPPORT 82913 82913 0 91512 72999 18513 12131787 11080865 1050922 0 970 970 11076024 7776921 3371532 78226 101367973 89889945 143089 125339 636195 201533 368748 434662 10974360 22346887 11057541 4604278 138360237 125257228 2082944 692171 2680857 2024185 77440357 66084505 107782 22380 82311940 68823241 X 56048297 56433987 56048297 56433987 138360237 125257228 X -1405095 1782946 7840 X X 0 1 X 1 0 X 15316159 14143721 13139003 14625354 10418983 67643220 15316159 14143721 13139003 14625354 10418983 67643220 0 0 0 67643220 599600 263276 227262 87931 183033 1361102 599600 263276 227262 87931 183033 1361102 54214 -17311 -25402 83904 37942 133347 283680 283680 290721 201928 167590 1227599 16253653 14673366 13631584 14999117 10807548 70365268 0.96130 0.96180 0.01930 0.01910 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: REIMBURSED EXPENSES - 2012 AMOUNT: $ 283,680. 2013 AMOUNT: $ 283,680. 2014 AMOUNT: $ 290,721. 2015 AMOUNT: $ 201,928. 2016 AMOUNT: $ 167,590. 51725 40294 11431 486098 125573 360525 98372 35666 62706 434662 CAPITALIZED LEASE LIABILITY 22380 22380 X 12349888 1782946 7840 1790786 10559102 167590 167590 10726692 11964198 0 11964198 167590 167590 12131788 PART X, LINE 2: EDUCAP INC. IS EXEMPT FROM FEDERAL AND STATE INCOME TAX UNDER THE PROVISIONS OF IRC SECTION 501(C)(3), HOWEVER, ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF THE ORGANIZATION HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE ("IRS"). MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY EDUCAP INC., AND HAS CONCLUDED AS OF SEPTEMBER 30, 2017 AND 2016, THERE ARE NO POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF THE LIABILITY (OR ASSET) OR DISCLOSURE IN THE FINANCIAL STATEMENTS. EDUCAP INC. IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS AND COULD BE SUBJECT TO INCOME OR EXCISE TAXES IF CERTAIN ISSUES WERE FOUND BY THE IRS THAT COULD RESULT IN THE DISQUALIFICATION OF EDUCAP INC.'S TAX-EXEMPT STATUS. HOWEVER, AS OF SEPTEMBER 30, 2017, THERE ARE NO AUDITS IN PROGRESS FOR ANY TAX PERIODS. PART XI, LINE 2D - OTHER ADJUSTMENTS: UNREALIZED GAIN ON PROGRAM RELATED INTEREST RATE SWAP INSTRUMENT 7,840. PART XI, LINE 4B - OTHER ADJUSTMENTS: MISCELLANEOUS INCOME TREATED AS CONTRA EXPENSE ON FINANCIAL STATMENTS 167,590. PART XII, LINE 4B - OTHER ADJUSTMENTS: MISCELLANEOUS INCOME TREATED AS CONTRA EXPENSE ON FINANCIAL STATMENTS 167,590. 1 ALASKA AVIATION HERITAGE MUSEUM 4721 AIRCRAFT DRIVE ANCHORAGE AK 99502 920071852 501(C)(3) 10000 GENERAL SUPPORT AMERICAN ACADEMY OF ACHIEVEMENT 1222 16TH STREET NW WASHINGTON DC 20036 756042129 501(C)(3) 3650000 GENERAL SUPPORT CENTRO NIA 1420 COLUMBIA ROAD NW WASHINGTON DC 20009 251689720 501(C)(3) 10000 GENERAL SUPPORT CLOSE UP FOUNDATION 1330 BRADDOCK PLACE SUITE 400 ALEXANDRIA VA 22314 237122882 501(C)(3) 10000 GENERAL SUPPORT FORD'S THEATRE SOCIETY 511 TENTH STREET NW WASHINGTON DC 20004 526073157 501(C)(3) 45000 SUPPORT OF HISTORIC FORD'S THEATRE EDUCATION INITIATIVES MEDSTAR - GEORGETOWN MEDICAL CENTER INC 4200 WISCONSIN AVE SUITE 200 WASHINGTON DC 20016 522218584 501(C)(3) 10000 GENERAL SUPPORT HARVARD UNIVERSITY KENNEDY SCHOOL OF GOVERNMENT 79 JOHN F KENNEDY ST CAMBRIDGE MA 02138 042103580 501(C)(3) 50000 GENERAL SUPPORT INOVA HEALTH SYSTEMS FOUNDATION 8110 GATEHOUSE RD SUITE 200E FALLS CHURCH VA 22042 541071867 501(C)(3) 10000 GENERAL SUPPORT JILL'S HOUSE 9011 LEESBURG PIKE VIENNA VA 22182 371465256 501(C)(3) 10000 GENERAL SUPPORT JOHN F KENNEDY CENTER FOR THE PERFORMING ARTS 2700 F STREET NW WASHINGTON DC 20566 530245017 501(C)(3) 295000 GENERAL SUPPORT NEW YORK UNIVERSITY 726 BROADWAY 2ND FLOOR NEW YORK NY 10003 135562308 501(C)(3) 300000 CATHERINE B. REYNOLDS FOUNDATION FELLOWSHIPS AND GENERAL SUPPORT PANETTA INSTITUTE FOR PUBLIC POLICY 100 CAMPUS CENTER BLDG 86-E CSU MONTEREY BAY SEASIDE CA 93955 770495799 501(C)(3) 30000 GENERAL SUPPORT SHARE OUR STRENGTH 1030 15TH ST NW 1100 WASHINGTON DC 20005 521367538 501(C)(3) 25000 GENERAL SUPPORT STANFORD UNIVERSITY 326 GALVEZ STREET STANFORD CA 94305 941156365 501(C)(3) 100000 GENERAL SUPPORT 14 0 PART I, LINE 2: EDUCAP INC. MONITORS THE USE OF FUNDS IT GRANTS TO OTHER NON-PROFIT ORGANIZATIONS IN A VARIETY OF WAYS, INCLUDING FIRST-HAND MONITORING, BOARD AFFILIATIONS, AND REPUTATIONAL AND OTHER FEEDBACK. X 1 1 X X X X X X 0 0 0 0 0 0 0 0 0 CATHERINE REYNOLDS CHAIRMAN & CEO 519733 0 150000 0 10242 0 24000 0 25535 0 729510 0 0 0 MATTHEW MURRAY CHIEF FINANCIAL OFFICER 249894 0 60000 0 18630 0 12495 0 26711 0 367730 0 0 0 PATRICIA JEAVONS CONTROLLER 152667 0 5000 0 1321 0 7633 0 10395 0 177016 0 0 0 MARCUS MAIORCA VICE PRESIDENT OF PORTFOLI 132843 0 10000 0 389 0 6642 0 15436 0 165310 0 0 0 MICHAEL WARE VICE PRESIDENT OF OPERATIO 132843 0 7500 0 259 0 6642 0 15566 0 162810 0 0 0 PART I, LINE 1A EDUCAP INC. PROVIDES FIRST CLASS TRAVEL FOR ITS SENIOR EXECUTIVES WHEN APPROPRIATE PURSUANT TO EDUCAP INC.'S TRAVEL POLICY. WAYNE REYNOLDS THE AMERICAN ACADEMY OF ACHIEVEMENT'S PRESIDENT & CHAIRMAN IS MR. REYNOLDS 3650000 GRANTS ARE PROVIDED FROM EDUCAP INC. TO THE AMERICAN ACADEMY OF ACHIEVEMENT. 0 WAYNE REYNOLDS THE AMERICAN ACADEMY OF ACHIEVEMENT'S PRESIDENT & CHAIRMAN IS MR. REYNOLDS 70938 OFFICE RENT IS PAID BY EDUCAP INC. TO THE AMERICAN ACADEMY OF ACHIEVEMENT FOR OFFICE SPACE LEASED TO EDUCAP INC. 0 WAYNE REYNOLDS THE AMERICAN ACADEMY OF ACHIEVEMENT'S PRESIDENT & CHAIRMAN IS MR. REYNOLDS 167590 ACCOUNTING AND ADMINISTRATIVE SERVICES ARE PROVIDED BY EDUCAP INC. TO THE AMERICAN ACADEMY OF ACHIEVEMENT. 0 FORM 990, PART VI, SECTION A, LINE 2 CATHERINE REYNOLDS AND WAYNE REYNOLDS, FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11B EDUCAP INC.'S FORM 990 REVIEW POLICY IS AS FOLLOWS: 1. EDUCAP INC. PROVIDES ITS BOARD OF DIRECTORS WITH EDUCAP INC.'S FORM 990 EACH YEAR PRIOR TO FILING THE FORM 990 WITH THE IRS. 2. THE AUDIT COMMITTEE OR A SPECIAL COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS AND APPROVES THE FORM 990 PRIOR TO ITS FILING WITH THE IRS. TO ASSIST THE AUDIT COMMITTEE OR A SPECIAL COMMITTEE WITH ITS REVIEW OF THE FORM 990, THE AUDIT COMMITTEE OR A SPECIAL COMMITTEE MAY, AMONG OTHER THINGS, SPEAK WITH THE ACCOUNTANT WHO PREPARED THE FORM 990 AND COUNSEL WHO REVIEWED THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C MONITORING, COMPLIANCE ENFORCEMENT, AND PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST MONITORING AND COMPLIANCE ENFORCEMENT - EACH DIRECTOR, PRINCIPAL OFFICER, KEY EMPLOYEE, AND MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS SHALL ANNUALLY SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON: A. HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY. B. HAS READ AND UNDERSTANDS THE POLICY. C. HAS AGREED TO COMPLY WITH THE POLICY. D. UNDERSTANDS THAT EDUCAP INC. IS A TAX-EXEMPT ORGANIZATION AND IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION, IT MUST ENGAGE IN PRIMARILY ACTIVITIES THAT ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. TO ENSURE THAT EDUCAP OPERATES IN A MANNER CONSISTENT WITH TAX-EXEMPT PURPOSES AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX-EXEMPT STATUS, PERIODIC REVIEWS SHALL BE CONDUCTED. THE PERIODIC REVIEWS SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: A. WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. B. WHETHER PARTNERSHIPS, JOINT VENTURES, AND ARRANGEMENTS WITH MANAGEMENT ORGANIZATIONS CONFORM TO EDUCAP INC.'S WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, FURTHER TAX-EXEMPT PURPOSES AND DO NOT RESULT IN INUREMENT, IMPERMISSIBLE PRIVATE BENEFIT OR IN AN EXCESS BENEFIT TRANSACTION. PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST: A. AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE BOARD OR COMMITTEE MEETING, BUT AFTER THE PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT INVOLVING THE POSSIBLE CONFLICT OF INTEREST. B. THE CHAIRPERSON OF THE BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. C. AFTER EXERCISING DUE DILIGENCE, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER EDUCAP CAN OBTAIN WITH REASONABLE EFFORTS A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. D. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY POSSIBLE UNDER CIRCUMSTANCES NOT PRODUCING A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN EDUCAP'S BEST INTEREST, FOR ITS OWN BENEFIT, AND WHETHER IT IS FAIR AND REASONABLE. IN CONFORMITY WITH THE ABOVE DETERMINATION IT SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY A. IF THE BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT A MEMBER HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. B. IF, AFTER HEARING THE MEMBER'S RESPONSE AND AFTER MAKING FURTHER INVESTIGATION AS WARRANTED BY THE CIRCUMSTANCES, THE BOARD OR COMMITTEE DETERMINES THE MEMBER HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION FOR OFFICERS IS APPROVED ANNUALLY BY THE SPECIAL COMMITTEE OF THE BOARD OF DIRECTORS, COMPRISED OF INDEPENDENT BOARD MEMBERS. ADDITIONALLY, THE SPECIAL COMMITTEE MEMBERS UTILIZE THE EXPERTISE OF AN INDEPENDENT COMPENSATION EXPERT WHO MEETS WITH THE SPECIAL COMMITTEE MEMBERS AND PROVIDES AND REVIEWS A COMPENSATION COMPARABILITY REPORT, IN ACCORDANCE WITH BEST PRACTICES OUTLINED BY THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION C, LINE 19 TO THE EXTENT REQUIRED BY LAW, THE FORM 990 AND FINANCIAL STATEMENTS ARE AVAILABLE BY REQUEST. FORM 990, PART XI, LINE 9: UNREALIZED GAIN ON PROGRAM RELATED INTEREST RATE SWAP INSTRUMENT 7,840. FORM 990, PART XII, LINE 2C EDUCAP INC. HAS AN AUDIT COMMITTEE, COMPRISED OF INDEPENDENT BOARD MEMBERS, THAT ASSUMES OVERSIGHT OF THE AUDIT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR FISCAL YEAR. FORM 990, PART I, DOING BUSINESS AS: EDUCAP INC. ALSO DOES BUSINESS USING THE NAME LOAN TO LEARN. FORM 990, PART X, LINE 7 STUDENT LOANS RECEIVABLE AS OF SEPTEMBER 30, 2017, CONSISTED OF THE FOLLOWING: STUDENT LOAN PRINCIPAL RECEIVABLE 136,156,836 DEFERRED LOAN ORIGINATION INCOME -2,082,790 ------------ 134,074,046 LESS: ALLOWANCE FOR LOAN LOSSES -45,553,996 ------------ 88,520,050 STUDENT LOAN INTEREST RECEIVABLE 1,404,979 LESS: ALLOWANCE FOR UNCOLLECTABLE INTEREST -35,084 ------------ STUDENT LOANS RECEIVABLE 89,889,945 ============ FORM 990, PART X, LINE 23 EDUCATION LOAN NOTES PAYABLE AS OF SEPTEMBER 30, 2017, CONSISTED OF THE FOLLOWING: SENIOR NOTES: SERIES 2006 AB, DUE 2031 66,855,129 LESS: ORIGINAL ISSUE DISCOUNT -90,368 LESS: DEBT ISSUANCE COSTS -680,256 ------------ TOTAL EDUCATION LOAN NOTES PAYABLE 66,084,505 ============ L2L EDUCATION LOAN TRUST 2006-1 45610 WOODLAND ROAD SUITE 440 STERLING VA 20166 026182050 FINANCING THE PURCHASE OF STUDENT LOANS VA 6369998 104168467 EDUCAP INC L2L EDUCATION LOAN FUNDING LLC 45610 WOODLAND ROAD SUITE 440 STERLING VA 20166 205944194 FINANCING THE PURCHASE OF STUDENT LOANS VA 0 -86666 EDUCAP INC