Educational Credit Management Corporation
Public records show a registered, tax-exempt organization in good standing.
Points to look into
- It reported loans to or from officers, directors or other insiders.
These come from the organization's own tax return. There may be a good explanation; ask the charity.
What it says it does
EDUCATIONAL CREDIT MANAGEMENT CORPORATION (ECMC) PROVIDES FINANCIAL COUNSELING AND EDUCATION TO EMPOWER STUDENTS TO MAKE BETTER CHOICES ABOUT THEIR FUTURES.
- Income
- $265.0 million
- Spending
- $261.6 million
- Spent on programs
- 82%
- Reserves
- 1.8 months of spending
- Largest source of income
- fees for its services, 94%
- Employees
- 250
- Volunteers
- 0
- Highest pay
- $1.5 million, president & ceo, ecmc group
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Financial health
Weak: 44 out of 100. Higher than 12% of charities in its peer group (public benefit, over $100m).
Reserves
10 of 35Spendable reserves would cover 1.8 months of spending.
Debt
2 of 20It owes 80% of what it owns.
Living within its means
12 of 15Income exceeded spending by 1% of income.
Income trend
5 of 15Income fell 17% on the year before.
Spending floor
15 of 1582% of spending went to programs and raising each dollar of donations cost 0 cents.
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Governance
Strong: 90 out of 100. Higher than 12% of charities in its peer group (public benefit, over $100m).
Independent board
25 of 258 of 9 voting board members are independent.
Conflict of interest policy
15 of 15Has a written conflict of interest policy.
Whistleblower policy
8 of 8Has a written whistleblower policy.
Record keeping policy
7 of 7Has a written policy on keeping and destroying records.
Board minutes
5 of 5Keeps minutes of board meetings.
Board sees the tax return
10 of 10Gave the board a copy of this return before filing it.
Pay set independently
5 of 5Sets its chief executive's pay through independent review and comparison.
Independent check of accounts
15 of 15Its accounts were audited by an independent accountant.
No reported misuse
0 of 10Reports at least one of: diversion of assets, excess benefits, loans to insiders.
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Impact evidence
Describes programs. Its tax return describes what it does but we have found no measurable results in it.
Programs described in its return (6)
- $50.5 million spent. BANKRUPTCY SERVICING:ECMC SERVICES AND MONITORS THE BANKRUPTCY CASES ON FFELP STUDENT LOANS CURRENTLY UNDER CHAPTER 7 OR 13 OF THE BANKRUPTCY CODE. THE BANKRUPTCY LOANS ARE TRANSFERRED FROM THE U.S. DEPARTMENT OF EDUCATION (ED) AND OTHER GUARANTY AGENCIES FOR PROCESSING BY ECMC. AT THE REQUEST OF ED, SPECIALTY STUDENT LOAN SERVICES ARE ALSO PERFORMED FOR ED. THE BANKRUPTCY STUDENT LOAN PORTFOLIO AT DECEMBER 31, 2024 CONSISTED OF $458 MILLION IN OUTSTANDING PRINCIPAL, INTEREST AND FEES.
- $17.2 million spent. DEFAULT AVERSION, CLAIMS AND COLLECTION PROGRAM:IN ECMC'S ROLE AS A FEDERAL STUDENT LOAN GUARANTOR, WE 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. 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 HELPING THE BORROWER RECOVER FROM DEFAULT. CONGRESS HAS GIVEN US TOOLS, SUCH AS THE LOAN REHABILITATION PROGRAM WHERE WE 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 $21.8 BILLION IN STUDENT LOAN RECOVERIES TO THE U.S. TREASURY.AS PART OF DCL GEN-22-16, THE U.S. DEPARTMENT OF EDUCATION (ED), ESTABLISHED A TRANSITIONAL FEE TO BE PAID TO GUARANTORS FROM AUGUST 29, 2023 THROUGH THE FRESH START PERIOD, WHICH ENDED ON SEPTEMBER 30, 2024. THE TRANSITIONAL FEE IS PAID TO GUARANTORS TO HELP THEM INITIATE THE REPAYMENT RESTART WHILE SUPPORTING BORROWERS AND ASSISTING THEM AS THEY NAVIGATE THE FRESH START PERIOD AND ALL THEIR OPTIONS. ECMC RECORDED $78 MILLION FOR TRANSITIONAL FEE REVENUE IN 2024, ALL OF WHICH IS FULLY RECEIVED AS OF DECEMBER 31, 2024.ON OCTOBER 8, 2024, A VOLUNTARY FLEXIBLE AGREEMENT (VFA) WAS SIGNED BETWEEN ED AND ECMC. THIS ALLOWS THE SECRETARY TO WAIVE MOST STATUTORILY REQUIRED COLLECTIONS ACTIVITY AND REVENUE. THE VFA ECMC AND ED MUTUALLY AGREED UPON IS SET FOR A TWO-YEAR PERIOD BEGINNING OCTOBER 1, 2024, THROUGH SEPTEMBER 30, 2026, UNLESS TERMINATED EARLIER AS PROVIDED IN THE VFA. ECMC RECORDED $17.4 MILLION FOR SPECIAL ACCOUNT MAINTENANCE FEE (SAMF) REVENUE FOR THE PERIOD FROM OCTOBER 1, 2024, THROUGH DECEMBER 31, 2024.
- $12.8 million spent. LOAN GUARANTEE PROGRAM:ECMC IS THE DESIGNATED GUARANTY AGENCY FOR CALIFORNIA, CONNECTICUT, ILLINOIS, LOUISIANA, MAINE, MISSOURI, NORTH CAROLINA, OREGON, RHODE ISLAND, SOUTH CAROLINA, TENNESSEE, UTAH AND VIRGINIA 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. 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 MARCH 30, 2010, THE HEALTH CARE AND EDUCATION AFFORDABILITY RECONCILIATION ACT OF 2010 WAS SIGNED INTO LAW AND AMENDED THE HIGHER EDUCATION ACT BY TERMINATING THE AUTHORITY TO MAKE OR INSURE NEW LOANS UNDER FFELP AFTER JUNE 30, 2010. AS A RESULT, ECMC CEASED GUARANTEEING LOANS EFFECTIVE JULY 1, 2010. ALL EXISTING FFELP LOANS WILL CONTINUE TO BE GUARANTEED AND SERVICED AS FFELP LOANS THROUGHOUT THEIR REMAINING LIFE, WHICH GENERALLY AVERAGES 5 YEARS. AS OF DECEMBER 31, 2024, THE NON-DEFAULT GUARANTEE PORTFOLIO CONSISTED OF $11.2 BILLION IN ORIGINAL OUTSTANDING PRINCIPAL BALANCE.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 HAS BEEN EXTENDED THROUGH SEPTEMBER 30, 2025. THE GUARANTOR FEDERAL RESERVE FUND REIMBURSED ECMC FOR EXPENSES INCURRED IN THE AMOUNT OF $3.3 MILLION FOR THE YEAR ENDED DECEMBER 31, 2024.
- $3.8 million spent. 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.
- $863,243 spent. THIRD-PARTY GUARANTOR SERVICING:ECMC PERFORMS FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) LOAN PORTFOLIO SERVICING ACTIVITIES FOR OTHER STATE AND NONPROFIT GUARANTORS OF FFELP LOANS IN RETURN FOR A FEE. FFELP GUARANTOR LOAN PORTFOLIO SERVICING ACTIVITIES ARE IDENTICAL TO THOSE SERVICES THAT IT PERFORMS ON ITS OWN BEHALF AND INCLUDE LOAN CONVERSION ACTIVITIES, DEFAULT AVERSION, BORROWER UPDATES, CUSTOMER SERVICE, PAYMENT PROCESSING, DUE DILIGENCE PROCEDURES AND CLAIM PROCESSING.
- $128.9 million spent. CONTRIBUTIONS MADE TO ECMC GROUP, INC.:ECMC GROUP, INC. IS THE PARENT OF AND A SUPPORTING ORGANIZATION TO ECMC. ECMC GROUP, INC. RETAINS THE FOLLOWING AUTHORITY OVER ECMC:1. TO AUTHORIZE AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS.2. TO APPROVE THE STRATEGIC AND FINANCIAL PLANS.3. TO ELECT AND/OR APPROVE THE MEMBERS OF THE BOARD OF DIRECTORS.4. TO OVERSEE COORDINATION OF PROGRAMS AND SERVICES OFFERED.5. TO AUTHORIZE FORMATION, GOVERNANCE AND DISSOLUTION.ECMC GROUP, INC. AUTHORIZES THE DISTRIBUTION OF FUNDS FROM ECMC TO ECMC GROUP, INC. SECTION 422B OF THE HIGHER EDUCATION ACT OF 1965, AS AMENDED, ALLOWS ECMC TO INVEST FUNDS AT ITS DISCRETION IN ACCORDANCE WITH PRUDENT INVESTOR STANDARDS AND TO USE FUNDS FOR HIGHER EDUCATION-RELATED ACTIVITIES. ECMC DISTRIBUTES FUNDS TO ECMC GROUP, INC. TO INVEST AND TO DISTRIBUTE TO ECMC FOUNDATION AND ECMC EDUCATION, INC. TO USE FOR HIGHER EDUCATION-RELATED ACTIVITIES.
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Legitimacy checks
Is it registered with the IRS? Passed.
Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Has the IRS revoked its tax-exempt status? Passed.
Not on the IRS automatic revocation list.
Source: Automatic revocation of exemption list, Internal Revenue Service, file dated October 13, 2026.
Are donations tax-deductible? Passed.
On the IRS list of organizations eligible to receive tax-deductible contributions.
Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.
Is it keeping up with its IRS filings? Passed.
Most recent return on file covers the year ending December 2024.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
How long has it been tax-exempt? Passed.
Recognized by the IRS since August 1995.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Is it in good standing with state regulators? Passed.
Not on California's list of charities barred from soliciting. Other states are not yet checked.
Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated October 21, 2026.
Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.