The Internal Revenue Service is examining the business practices of a nonprofit student-loan company called EduCap Inc., The Washington Post reported today.

EduCap, which makes private student loans under the name Loan to Learn, first came under scrutiny last fall, when it invited financial-aid directors to an all-expenses-paid conference in the Caribbean. The company later canceled the conference, citing “confusion and misinformation” about its purpose.

The exact nature of the IRS inquiry is unclear, according to the Post. However, the newspaper details lavish spending by the nonprofit company, including the purchase of a $30-million Gulfstream jet that its chief executive, Catherine B. Reynolds, has used to fly her family and friends around the world. The article also details how the philanthropic arm of EduCap, the Catherine B. Reynolds Foundation, has given money to organizations and entities with ties to the Reynolds family. Ms. Reynolds was a member of the federal Commission on the Future of Higher Education.

Last year the United States Students Association filed a complaint against EduCap with the Federal Trade Commission, accusing the company of engaging in deceptive marketing practices. The commission responded last month, writing that it would not take action because nonprofit groups do not fall under its jurisdiction. —Kelly Field