The Missouri Department of Higher Education and Workforce Development has selected Educational Credit Management Corporation (ECMC) to provide student loan administrative services for student loans guaranteed by the department.
The new loan servicing company will provide a student loan data processing system and operational support.
The department has served as a student loan guaranty agency through the Federal Family Education Loan Program (FFELP) since 1979. Although the federal Health Care and Education Reconciliation Act eliminated the ability of FFELP guarantors to grant new student loans in 2010, the department continues to service the loans it guaranteed prior to that date. The department manages a portfolio of more than $1 billion in student loans.
“We look forward to working with ECMC,” said Marla Robertson, director of the Missouri student loan program. “They have the student loan borrowers’ best interest in mind in all they do. ECMC provides exemplary service to clients, which will allow the department to continue supporting access to postsecondary education for Missouri students and families.”
The contract was awarded following a three-month competitive procurement process. The three-year contract can be renewed for up to two additional years.
The department currently receives student loan administrative services through a contract with Ascendium Education Solutions. That contract will expire in April 2020.
“The entire ECMC team is looking forward to working closely with our colleagues at the department to ensure a seamless transition for the borrowers in the Missouri portfolio, and to providing high-quality, reliable service for years to come,” said Jan Hines, president and CEO of ECMC.
ECMC, headquartered in Minneapolis, MN, is a nonprofit corporation that provides support for the administration of FFELP as a student loan guaranty agency. ECMC is the designated guarantor for seven states and the third-party guarantor servicer for six clients. In its guarantor role, ECMC provides financial education services to empower students to make informed choices about their futures. ECMC also oversees student loan repayments to ensure taxpayer funds are replenished so future generations of students have access to federal education funding.
About the Missouri Department of Higher Education & Workforce Development: The department works to empower Missourians with the skills and education needed for success. More information about MDHEWD can be found at https://dhewd.mo.gov or on Facebook and Twitter @MoDHEWD.