Educational Credit Management Corporation

Educational Credit Management Corporation (ECMC) is a United States nonprofit corporation based in Minnesota. Since 1994, ECMC has operated in the areas of student loan bankruptcy management and loan collection. ECMC is one of a number of guaranty agencies which oversee student loans for the United States Department of Education. Starting in 2015, through its Zenith Education Group, company operations have expanded into ownership and operation of formerly for-profit colleges.

As a contractor, ECMC charges fees to debtors and earns commissions from taxpayers by collecting on defaulted student loans. In return, the US government has retrieved billions of dollars from student loan debtors. Since 1994, according to ECMC, they have returned $4.3 billion to the U.S. Treasury.

ECMC has been controversial for its "ruthless" tactics in recovering loans and for the large bonuses it paid its collectors.

The company was founded in 1994 in Minnesota.

In March 2010, the company was the target of data theft. The personal information on 3.3 million student-loan borrowers was taken.

In 2012, a panel of bankruptcy appeal judges criticized the company for its “waste of judicial resources,” and abuse of the bankruptcy process.

In February 2015, the company's newly created subsidiary Zenith Education Group acquired 56 Everest College and WyoTech campuses from Corinthian Colleges Inc. Zenith planned to transition the schools from for-profit to nonprofit status. It also planned to eliminate some programs with poor completion and job placement rates.

ECMC reported a loss of $100 million for Zenith Education Group in 2015. It now maintains 24 Everest College and Wyotech campuses, having consolidated, closed or begun teaching out 32 campuses. In 2016, ECMC gave $250 million to Zenith to maintain the remaining schools.

According to Open Secrets, ECMC has paid Podesta Group $580,000 to lobby for them. The Podesta Group, founded by Tony Podesta and John Podesta is one of the most powerful and influential lobbying firms in Washington, DC.

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