EDUCATIONAL CREDIT MANAGEMENT CORPORATION
111 Washington Ave So 1400, Minneapolis, MN 55401 www.ecmc.org

---

Organizations Filed Purposes: Educational Credit Management Corporation (ECMC) sponsors programs to help students plan and pay for college, promote financial literacy and provide resources to support student loan borrowers to repay their federally insured student loans.

Educational Credit Management Corporation (ECMC) provides services in support of higher education finance. ECMC sponsors programs to help students and families plan and pay for college. ECMC promotes financial literacy and provides resources for student loan borrowers to successfully repay their federally insured student loans. ECMC, a 501(c)(3) organization, is a national guaranty agency designated by the U.S. Secretary of Education under and pursuant to the provisions of the Higher Education Act of 1965, as amended. In 2013, ECMC added the Solutions program, providing default prevention and financial literacy to student loan borrowers to help them understand their repayment options before becoming delinquent or defaulting on their federally insured student loans. The program includes resources for postsecondary institutions to assist them in managing their cohort default rate. Services are offered to postsecondary institutions under a fee structure.

DEFAULT AVERSION, CLAIMS AND COLLECTION PROGRAM: IN Educational Credit Management Corporation's (ECMC'S) ROLE AS A FEDERAL STUDENT LOAN GUARANTOR, WE ARE RESPONSIBLE TO PERFORM DEFAULT PREVENTION ACTIVITIES, REIMBURSE LENDERS FOR DEFAULT AND OTHER TYPES OF CLAIMS, AND RECOVER DEFAULTED STUDENT LOANS. DEFAULT PREVENTION PROGRAM: ECMC HAS A ROBUST DEFAULT PREVENTION PROGRAM FOCUSED ON EDUCATING AND COUNSELING DELINQUENT BORROWERS ON REPAYMENT STRATEGIES TO FIND THE ONE THAT BEST FITS THEIR SITUATION SO THEY CAN SUCCESSFULLY REPAY THEIR LOAN. ECMC'S COMMITMENT TO PREVENT DEFAULTS IS STRONG; OUR POSITIVE RESULTS REFLECT OUR DEDICATION TO THIS PROGRAM. COLLECTION PROGRAM: FOR THOSE BORROWERS WHO FACE THE UNFORTUNATE SITUATION OF STUDENT LOAN DEFAULT, IT IS NOT ONLY OUR FIDUCIARY RESPONSIBILITY TO THE U.S. TREASURY AND THE TAXPAYER TO COLLECT THOSE LOANS, ECMC IS ALSO COMMITTED TO HELP THE BORROWER RECOVER FROM DEFAULT. FORTUNATELY, CONGRESS HAS GIVEN US TOOLS TO DO SO, SUCH AS THE LOAN REHABILITATION PROGRAM WHERE WE ARE GIVEN SIGNIFICANT LATITUDE TO ESTABLISH AN INCOME-CONTINGENT REPAYMENT ARRANGEMENT WITH THE BORROWER. WITH SUCCESSFUL COMPLETION OF THIS PROGRAM, THE DEFAULT STATUS IS REMOVED FROM THE BORROWER'S RECORD. SINCE INCEPTION, ECMC HAS RETURNED $19.6 BILLION IN STUDENT LOAN RECOVERIES TO THE U.S. TREASURY.

Loan Guarantee Program: Educational Credit Management Corporation (ECMC) is the designated guaranty agency for Virginia, Oregon, Connecticut, California, Tennessee, South Carolina, Rhode Island and Maine (effective December 1, 2019) under the Federal Family Education Loan Program (FFELP). A Guaranty Agency under FFELP provides Federal Student Loan Guarantees and ongoing processing services to U.S. Department of Education-approved FFELP lenders and postsecondary education students and their parents for loans extended under FFELP. FFELP was established by the U.S. Congress as a means of making loans available to students attending qualifying postsecondary educational institutions and to parents of such students. FFELP provides for the Guarantor to guarantee the repayment of principal and accrued interest to the lender for each eligible loan. Additional services provided by ECMC in fulfilling its role as a Guaranty Agency include, but are not limited to: assisting borrowers and parents in preparing for college; financial literacy and money management education; education regarding the obligations associated with student loans; and education on how to avoid student loan default. On November 1, 2016, ECMC entered into a three-year agreement with the U.S. Department of Education (ED) whereby ECMC will participate in ED's Project Success by providing services on behalf of ED to certain minority serving institutions (Institutions). The services that ECMC may provide to the Institutions include institutional support services to benefit the Institutions and services to assist the Institution's students. All of the services provided must relate to federal student loans. The Secretary has authorized ECMC to use the Guarantor Federal Reserve Fund to pay the cost of providing services under the Project Success Program, not to exceed $20 million for the three-year agreement. The agreement was renewed on November 1, 2019, for an additional three years. The Guarantor Federal Reserve Fund reimbursed ECMC for expenses incurred in the amount of $2.4 million for the year ended December 31, 2019. As of December 31, 2019, the non-default guarantee portfolio consisted of $19.3 billion in original outstanding principal balance.

ECMC SOLUTIONS PROGRAM: THE ECMC SOLUTIONS PROGRAM FOCUSES ON PROVIDING DEFAULT PREVENTION AND FINANCIAL LITERACY TO STUDENT LOAN BORROWERS WHILE THEY ARE STILL IN SCHOOL, IN THEIR GRACE PERIOD, OR IN REPAYMENT TO HELP THEM UNDERSTAND THEIR REPAYMENT OPTIONS BEFORE BECOMING DELINQUENT OR DEFAULTING ON THEIR FEDERALLY INSURED STUDENT LOANS. THE PROGRAM INCLUDES RESOURCES FOR POSTSECONDARY INSTITUTIONS TO ASSIST THEM IN MANAGING THEIR COHORT DEFAULT RATE. SERVICES ARE OFFERED TO POSTSECONDARY INSTITUTIONS UNDER A FEE STRUCTURE.

---

---

Data for this page was sourced from XML published by IRS (public 990 form dataset) from: https://s3.amazonaws.com/irs-form-990/202023179349308677_public.xml