USING YOUR SCTPP BENEFITS GUIDE
You can use your SCTPP benefits at any South Carolina public university or technical college, as well as at any qualified* public or private college throughout the country.
Your SCTPP contract entitles you to benefits for two years (four semesters) or four years (eight semesters) depending on the type of contract purchased on your behalf. Although you will enroll for a certain number of ‘credit hours’ at your chosen institution, SCTPP benefits are tracked and deducted from your account in ‘semesters’, or percentages thereof, based on the dollar amount billed by the school. For each term SCTPP is billed, the program will pay an amount up to the semester payout rate established each academic year. For any South Carolina public university or technical college, this represents the cost of in-state, in-county tuition and mandatory fees for full-time enrollment at that particular institution; for an out-of-state or private institution, it represents the cost of the current average tuition and mandatory fees at South Carolina’s public colleges and universities for full-time enrollment. In other words, benefit payments for each academic term will be capped at a “semester payout rate” for the school you attend, and the benefits deducted from your account will equal one semester if the semester payout rate is paid OR a percentage of a semester if less than the semester payout rate is paid. This applies to all billing terms.
For example, if the fall semester payout rate for Winthrop University is $2,500 and SCTPP is billed for $2,500 – the full amount billed will be paid and one semester will be deducted from your account, regardless of the number of credit hours for which you are enrolled. As long as the dollar amount billed by the school matches the semester payout rate established for that institution for full-time enrollment, a full semester will be paid and deducted.
Additionally, if SCTPP is billed for an amount less than the semester payout rate and attendance is less than full-time (typically during a summer term), a percentage of a semester will be calculated and deducted accordingly. Using the same semester payout rate for fall as stated above – if SCTPP is billed for part-time enrollment at $1,500, SCTPP will pay the $1,500 and deduct 0.600 of a semester from the account. The portion of a semester deducted is calculated as follows: $1,500 billed / $2,500 full-time cost = 0.600 of a semester.
The above examples also apply if you are attending a quarter or a trimester institution. Because your benefits are deducted based on the dollar amount SCTPP pays, your benefits will be deducted according to the calculations cited above. There are no adjustments or conversions made to deduct a smaller amount of benefits even though your institution does not adhere to a semester system.
Once you use your SCTPP benefits for four semesters or eight semesters (depending on the type of contract purchased), the available benefits are considered depleted.
To use SCTPP benefits, the account must be paid in full, including payment of all outstanding fees, and the program must have the correct Social Security Number and current address on file for you and the contributor of the account. It is your responsibility to notify the school’s billing office of your intention to use SCTPP benefits each semester. The SCTPP Identification Card is provided to you for this purpose. If the school has any questions about your eligibility to use SCTPP benefits or the procedures to verify your eligibility, please ask a school representative to call SCTPP at 1-888-772-4723 (in Columbia, dial 737-2033), option 1.
No adjustments will be made to your SCTPP account balance for failed courses or hours dropped after an invoice has been paid. If you withdraw from school after registration, you must notify the school’s billing office so SCTPP will not be billed.
Your SCTPP contract terminates when you use the semesters available, when you receive your undergraduate degree, or when you reach the age of 30, whichever occurs first.
DELAYING COLLEGE / DELAYING USE OF BENEFITS
You have until your 30th birthday to use the benefits of your SCTPP contract. This deadline may be extended for up to four years if you enter military service. Benefits may be used in advance of the original "projected maturity date" if the beneficiary is an accelerated student or dually enrolled. The contributor must provide written notice to SCTPP no less than 180 days before the new enrollment date and your SCTPP contract must be paid in full. An administrative fee may be assessed for a change in enrollment year.
ESTABLISHING YOUR ELIGIBILITY FOR SCTPP PAYMENTS
During registration, it is your responsibility to contact the university’s billing or financial aid office to establish invoicing for SCTPP. You are responsible for advising them that you are a SCTPP beneficiary, as well as ensuring that the college bills SCTPP for your eligible benefits. Some schools may require you to provide a copy of your SCTPP Identification Card in order to bill SCTPP for your tuition and fees. You may also elect not to use your SCTPP benefits for a particular semester’s charges if that is in your best interest. In either case, you must communicate your intent with the university’s billing office.
SOUTH CAROLINA PUBLIC COLLEGES AND UNIVERSITIES
If you attend a public college or university (including four-year universities, two-year branch campuses, and technical colleges) in South Carolina, SCTPP will pay up to the school’s semester payout rate for the number of semesters purchased. The semester payout rate is the equivalent of undergraduate tuition and mandatory fees charged by the school for full-time enrollment for on-campus and in-county students. The semester payout rate will vary by school, and will be adjusted at the start of every academic year. Mandatory fees are those fees required as a condition of enrollment for all students and typically include capital improvement, health services, and athletic fees.
Please note that SCTPP will not pay for dormitory expenses, books, meal plans, course specific fees (such as lab fees), course supplies, orientation fees, laundry or uniform fees, parking fees, drop/add fees or any other fees or charges the program did not consider in the determination of the annual contract pricing structure, regardless of how these fees are characterized by the institution.
PRIVATE AND OUT-OF-STATE COLLEGES AND UNIVERSITIES
If you plan to attend a private or out-of-state college or university, you must provide this information to SCTPP so we can ensure the school has the necessary information to request payment on your behalf. You may indicate your school choice by one of the following methods:
Print, complete and return the Intent to Enroll Form;
Mail it to SCTPP, PO Box 11778, Columbia, SC 29211;
or fax it to 800-519-4652;
The form may also be completed online. Select “My Account” then enter the out-of-state or private school in the “Benefit Information” section. You will need the account number and the account owner’s PIN, if one has been established.
Confirmation of your school choice will be mailed to you shortly after you notify the program of the school you are planning to attend. SCTPP will also contact the school to initiate the payment process at that time.
The amount paid to the school will not exceed the semester payout rate established each academic year based on the current weighted average tuition and mandatory fees at South Carolina’s public colleges and universities. The average tuition and fee rate is adjusted prior to the start of each school year; the most current payout rates are always listed in the “Weighted Average Tuition” section of this website. SCTPP will pay the school the weighted average tuition or the actual tuition billed by the school, whichever is less. A processing fee will also be deducted from the payment to an out-of-state college or university each payment term.
Payment to Schools
Colleges and universities will bill SCTPP for tuition and mandatory fees after the "drop and add" period, but prior to issuing partial refunds. Payment will be made directly to the school from the South Carolina Office of State Treasurer. You will be responsible for any charges imposed by the school that are not covered under your SCTPP contract. If you withdraw from school after registration but before classes begin, you must notify the university’s billing office so that SCTPP will not be billed. You will be responsible for any fees associated with withdrawal.
Scholarships and Scholarship Refund
If you receive a scholarship which covers a portion or all of your tuition and mandatory fees, your SCTPP benefits can be held for future use, used to cover the tuition and fees not paid for by the scholarship, or may be refunded to the contributor (owner) of the account on a semester-by-semester basis. The amount of the refund in this situation will include either the original purchase price plus the compounded rate of return earned by the Fund, or the current weighted average payout rate at colleges and universities in South Carolina, whichever is less.
It is your responsibility to coordinate billing and payment of SCTPP benefits with the university’s billing office when applied in conjunction with a scholarship. Payment from SCTPP can reduce the amount of the scholarship award (including the LIFE Scholarship) in some instances. In the event that you do not properly coordinate your benefits and SCTPP pays the school for tuition expenses also covered by your scholarship award, the paid benefits will be deducted from your SCTPP contract. The payments made to a school by SCTPP on your behalf cannot be reversed; therefore, it is important that you pay close attention to the invoices you receive from your school.
In order to process a scholarship refund, you may:
Print, complete and return the Scholarship Refund Request Form.pdf (50k);
Mail it to SCTPP, PO Box 11778, Columbia, SC 29211;
or fax it to 800-519-4652.
Or you may submit a written request signed by the contributor (owner of the account) and notarized with an official notary seal to SCTPP.
All scholarship refund requests must be submitted each semester and must include proof of the scholarship from the institution.
Usage Statement
Each year you will receive a usage statement for your SCTPP account. The usage statement will reflect the benefits deducted from your account for that school year and the remaining semester balance on your tuition prepayment contract. Any discrepancies should be reported to a SCTPP customer service representative at 1-888-772-4723, (in Columbia, dial 737-2033), option 1.
Taxes
Current federal tax law permanently allows all benefits paid to qualified* public or private institutions nationwide to be exempt from federal income tax. If you are a resident of South Carolina, all benefits also are exempt from South Carolina income tax. You should refer any questions about the tax benefits and liability of SCTPP to your professional tax advisor. SCTPP staff does not provide tax advice or counseling.
Financial Aid
Under current federal guidelines, tuition prepayment plans, including SCTPP, are treated as a parental asset on the Free Application for Federal Student Aid (FAFSA), like 529 savings plans. Most SCTPP accounts are owned by parents and should be reported as a parental asset on the FAFSA. When reporting SCTPP accounts, the account owner should report the total refund value of all SCTPP accounts held by the same owner. To help complete your FAFSA, the FAFSA reporting value is located on the account owner’s annual statement. It is also available under the "My Account" link under the Benefits Section or by calling customer service at 1-888-772-4723 (in Columbia, dial 737-2033), option 1. For more information regarding the effect of the SCTPP contract on your eligibility for financial aid, contact the financial aid office of the college or university you plan to attend.
* Qualified higher education institutions are those colleges and universities that are eligible to participate in Title IV Programs (receive federal financial aid distributions). The U.S. Department of Education maintains a listing of eligible institutions on its website at www.ed.sc.gov.
This information is intended to be general guidance related to SCTPP. It does not nor is it intended to create a contract or any contractual rights nor does it replace or modify the statutes, rules, or regulations related to this program. SCTPP is created by statutory law and governed by rules and regulations, and the terms and conditions and benefits of the program are prescribed by law. Since these laws and regulations are frequently changed, you may obtain the most current information by contacting SCTPP. No representation made herein or by any program employee, modifies or expands the benefits provided by law.