Missouri Department of Education finalizes contract with new student loan guarantor
The two parties entered an agreement in October 2019. In August 2020, ECMC completed the conversion of $12.3 billion dollars in student loan guarantees.
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 grant new student loans in 2010, the department continues to service the loans it guaranteed prior to that date.
As the state’s new guarantor, ECMC will provide data processing, computer operations, and operational support for the administration of Missouri’s residual student loan portfolio.
“ECMC is one of the largest guarantors of student loans in the county,” said Zora Mulligan, commissioner of higher education. “Its capabilities and expertise will play an important and cost-effective role to help Missouri student loan borrowers successfully repay their loans.”
ECMC has offered third-party guarantor services since 2015, for clients such as the Louisiana Office of Financial Assistance, the Michigan Guaranty Agency, and the Oklahoma College Assistance Program.
The department previously received student loan administrative services through the Great Lakes Higher Education Corporation and Affiliates. The contract was awarded to ECMC following a three-month competitive procurement process. An initial three-year contract was awarded with two additional one-year renewals available.