Earlier this year the Missouri Department of Higher Education & Workforce Development (MDHEWD) announced it was exiting the Federal Family Education Loan (FFEL) program after 43 years as the state designated guaranty agency. The United States Department of Education (USDE) has designated Education Credit Management Corporation (ECMC), a non-profit guarantor for FFEL loans, as MDHEWD’s successor guarantor. The transfer of MDHEWD’s portfolio to ECMC will be effective Oct. 1, 2022.
Affected industry partners were notified of the transition in mid-July. Affected borrowers were notified of the transition on September 1. Both MDHEWD and ECMC are committed to a smooth transition for borrowers, schools, lenders, and servicers.
The department has served as a student loan guaranty agency through the Federal Family Education Loan Program since 1979. Although the federal Health Care and Education Reconciliation Act eliminated the ability of the state to guarantee new student loans in 2010, the department continued to service the loans it guaranteed prior to that date. The decision to exit the FFEL program was made due to the ongoing pause on federal student loan payments and collections that began in 2020 in response to the COVID-19 pandemic.
More information about ECMC and the services it provides can be found at www.ecmc.org. Borrowers can also view the details of their student loans by logging into https://studentaid.gov/.