Ecmc

What it reported doing in 2024

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.

Financial Efficiency

• Mission deployment rate: 80.9%; rating input score 81
• Program expense ratio: 81.8%; rating input score 82
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 93.8%; rating input score 94; 25th percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: 2 of 8 controls in place; rating input score 25
  • Claims monitoring procedures: Pass
  • Requires narrative reports: Pass
  • Conducts field audits: Limited
  • May suspend future funding: Limited
  • Requires financial reports: Limited
  • Conducts site visits: Limited
  • Requires grant agreements: Limited
  • May require repayment: Limited
• Grant itemization coverage: 100%; rating input score 100; 50th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 88.9%; rating input score 89; 36th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 1.3%; rating input score 39; 39th percentile among comparable filings
• Total-asset coverage ratio: 0.8; rating input score 32; 32nd percentile among comparable filings
• Liabilities to assets ratio: 0.8; rating input score 17; 17th percentile among comparable filings
• Officer compensation ratio: 1.2%; rating input score 71; 71st percentile among comparable filings

Growth

• Program expense growth: -5.4% per year; rating input score 0; 2nd percentile among comparable filings
• Revenue growth: -1.1% per year; rating input score 0; 3rd percentile among comparable filings
• Asset growth: -4.1% per year; rating input score 0; 2nd percentile among comparable filings