S.C. Code Regs. 19-1295 - Refunds
A. Scope and
Purpose: This regulation sets forth the policies and procedures for providing
refund of payments to contributors.
B. Except as provided herein, refunds shall
not exceed the amount paid for any plan bought by the contributor. Termination
of student status after the official drop/add period eliminates the refund
option for that semester.
C. Refund
amounts shall not include amounts paid by the contributor over the duration of
the tuition prepayment contract for administrative or programmatic
fees.
D. All refund requests must
be in writing, signed by the contributor and notarized.
E. In Case of Scholarship:
1. If a designated beneficiary is awarded a
scholarship, the terms of which cover the benefits included in the tuition
prepayment contract, monies paid for the purchase of the tuition prepayment
contract shall be returned on a pro rata basis to the contributor in semester
installments coinciding with the matriculation by the designated beneficiary in
amounts equal to the lesser of the original purchase price plus the compounded
rate of return earned by the Fund or the current average tuition at colleges
and universities (as delineated in Section
19-1210B(1)).
2. Proof of scholarship by the institution
granting the scholarship shall be provided to the director by the contributor
in such form as specified by the Program.
F. In the Event of Death or Disability:
1. In the event of death or disability of the
designated beneficiary, monies paid for the purchase of a tuition prepayment
contract shall be returned to the contributor in lump sum to include the lesser
of the total of contract contributions plus the compounded rate of return
earned by the Fund or the current average tuition at colleges and universities
(as delineated in Section
19-1210B(1)).
2. Proof of death or disability shall be
provided to the director by the contributor in such form as required by the
Program.
G. Refund
Requests for Other than Tuition:
1. If a
designated beneficiary does not use the tuition prepayment contract benefits
for tuition the contract will be terminated and the contributor will have
available a pro-rata refund of the amount paid into the Fund and such earnings
as the Program may deem appropriate. A refund under this rule will not include
funds for any school year partially attended but not completed. A school year
partially attended but not completed shall mean any one semester of a two
semester school year whereby the student is enrolled at the conclusion of the
official drop/add period, but withdraws before the end of such semester. A more
than de minimus penalty, to be determined by the Program and under the
direction of any Federal legislation addressing the Program, will be assessed
against the amount available for refund to the contributor.
2. Any contributor who exhausts the benefits
purchased under a tuition prepayment contract and for whom the total value of
benefits received under such contract is less than the total of principal paid
for the benefits may request from the Program a refund of the difference
between the value of the benefits received and the principal paid.
Notes
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