S.C. Code Regs. § § 19-1295

Current through Register Vol. 48, No. 11, November 22, 2024

Section 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.

S.C. Code Regs. § 19-1295

Added by State Register Volume 22, Issue No. 6, Part 1, eff June 26, 1998.