Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Educational Credit Management Corporation (ECMC) under programs of the federal government for the year ended December 31, 2025. Federal expenditures consist of $111,269,062 of expenditures, which $3,418,959 are not reflected on the statement of activities. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance.
ECMC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
On August 1, 2025, ECMC acquired New Mexico’s loan portfolio, consisting of $135,547,809 in Original Principal Outstanding for pre default loans and $60,033,004 for defaulted loans. The acquired portfolio is included in the outstanding principal balance. The Original Principal Outstanding of loans in ECMC’s pre default portfolio was $10,045,717,764 as of December 31, 2025. The outstanding principal amount of loans in ECMC’s defaulted portfolio was $4,632,904,930 as of December 31, 2025.