Jefferson City, Missouri. – Earlier this year, the Missouri Department of Higher Education and Workforce Development (MDHEWD) announced it was leaving the Federal Family Education Loans (FFEL) program after 43 years in as a government-designated warranty agency. The United States Department of Education (USDE) has appointed Education Credit Management Corporation (ECMC), a nonprofit guarantor for FFEL loans, as the successor guarantor for MDHEWD. The transfer of the portfolio from MDHEWD to ECMC will be effective on October 1, 2022.
Relevant industry partners were notified of the transition in mid-July. Affected borrowers were notified of the transition on September 1. MDHEWD and ECMC are committed to ensuring a smooth transition for borrowers, schools, lenders and providers.
The department has served as a student loan guarantee agency through the federal Family Education Loan Program since 1979. Although the federal Health Care and Education Reconciliation Act eliminated the ability to government to guarantee new student loans in 2010, the department continued to administer the loans. he guaranteed before that date. The decision to leave the FFEL program was made due to the ongoing pause in federal student loan payments and collections that began in 2020 in response to the COVID-19 pandemic.
For more information about the ECMC and the services it offers, visit www.ecmc.org. Borrowers can also view their student loan details by logging on to https://studentaid.gov/.