Educational Credit Management Corporation

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Educational Credit Management Corporation (ECMC) is a non-profit United States based in Minnesota. Since 1994, ECMC has been operating in the field of bankruptcy student loan management and loan collection. ECMC is one of a number of guarantees that oversees student loans to the US Department of Education. Starting in 2015, through Zenith Education Group, the company's operations have evolved into ownership and operations of previous universities.

As a contractor, ECMC charges fees to debtors and generates taxpayer commissions by collecting student loans that fail. In return, the US government has taken billions of dollars from student credit debtors. Since 1994, according to ECMC, they have returned $ 4.3 billion to the US Treasury.

ECMC has become controversial because of its "cruel" tactics of recovering loans and for the huge bonuses paid by its collectors.

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History

The company was founded in 1994 in Minnesota.

In March 2010, the company was the target of data theft. Personal information on the 3.3 million borrowers of student loans is taken.

In 2012, a panel of bankruptcy appeals judges criticized the company for "wasting judicial resources," and misuse of bankruptcy proceedings.

In February 2015, the newly created subsidiary, Zenith Education Group, acquired 56 Everest Universities and the WyoTech campus of Corinthian Colleges Inc. Zenith plans to move schools from nonprofit status to nonprofit status. It is also planned to eliminate some programs with poor degree of completion and work placement.

ECMC reported a $ 100 million loss to Zenith Education Group in 2015. It now maintains 24 Everest and Wyotech campuses, after consolidating, closing or starting teaching on 32 campuses. In 2016, ECMC awarded $ 250 million to Zenith to keep the remaining schools.

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Political influence

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

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Controversy

In 2012, a panel of bankruptcy appeals judges criticized the ECMC for wasting judicial resources, and said its collection activities "are a misuse of bankruptcy proceedings and disobedience of court authorities."

In 2014, US Representative Steve Cohen of Tennessee said ECMC's purchase of Everest Colleges and Wyotech "raises big questions about their goals." Members of Congress added that "there's a smell that's out there all over this area, and mergers."

In 2016, the Associated Press reported that the remaining universities continued to recruit students through telemarketing and advertisements on daytime TV talk shows, and did not make substantive changes to the curriculum. New federal monitors were institutionalized after it was revealed that there was a conflict of interest between the monitor and the ECMC.

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References

Source of the article : Wikipedia