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EduCap
EduCap is an American private non-profit education finance company that was established in 1987. The Catherine B. Reynolds Foundation is the philanthropic affiliate of EduCap Inc. ==History== From the 1980s, increasing college tuition costs created demand for more funding than could be provided by federal aid programs. In 1987, Father John Whalen, a Catholic priest, founded a non-profit loan program to provide private funding for college students in the District of Columbia who did not qualify for government financial aid. In 1988, Catherine B. Reynolds joined the foundation as comptroller, and renamed the foundation EduCap. Catherine Reynolds soon became President of the student loan company. EduCap was insolvent when Reynolds was hired, but, as reported by The Washington Post, she established a nationwide private education loan program and established a for-profit affiliate, Servus Financial. It became the first education loan company to securitize credit-based private loans on Wall Street, was the first to market private student loan programs directly to consumers, and was the first to provide access to education financing as an employee benefit for corporations. In March of 2000, Servus Financial was sold to Wells Fargo Bank. In seven years, the foundation’s initial investment of $60,000 became worth several hundred million dollars. Servus Financial had provided 350,000 private student loans.
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