The terms of the loan and the courses of study for which loans are available must be consistent with a disinterested purpose of enabling recipients to obtain an education in their individual capacities only for their personal benefit. Loan terms and courses of study must not include any commitments, understandings, or obligations, conditional or unconditional, suggesting that recipients undertake the studies for the benefit of the employer or the foundation or that studies' objective is to accomplish any purpose of the employer or the foundation, even though consistent with its exempt status, other than to enable the recipients to obtain an education in their individual capacities. Return to Life Cycle of a Private Foundation
