2013-03-04T13:35:03-06:00 2012-06-30 570306533 DERRICK STUBBS & STITH LLP 508 HAMPTON STREET 1ST FLOOR COLUMBIA SC 29201 990 2011-07-01 570602805 SOUTH CAROLINA STUDENT LOAN CORP SOUT 8037980916 8906 TWO NOTCH ROAD COLUMBIA SC 29223 CHARLIE C SANDERS JR 8037980916 2013-02-28 1 ALAN F GRIMSLEY CPA P00557082 8037995810 2011 2016-03-07 17:11:31Z CHARLIE C SANDERS JR 8906 TWO NOTCH ROAD COLUMBIA SC 29223 106339878 0 X WWW.SCSTUDENTLOAN.ORG X 1973 SC SEE SCHEDULE O 10 9 178 0 0 0 36705414 27113745 77237815 78310997 17914789 745261 -115282 -367819 131742736 105802184 0 0 0 0 6154119 6401345 0 0 0 72075509 80503611 78229628 86904956 53513108 18897228 3751938168 3427376321 3286417620 2944981323 465520548 482394998 X SEE SCHEDULE O 1 1 85727975 779743178 SEE SCHEDULE O. 85727975 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 12 0 1 178 1 0 0 0 0 0 0 0 0 0 0 0 0 X 10 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 SC X HARRY BROWN 8036125069 8906 TWO NOTCH ROAD COLUMBIA SC 29223 CHARLIE SANDERS 40.00 X X 304919 0 28966 MR FREDRICK T HIMMELEIN ESQ 1.00 X 12000 0 0 J THORNTON KIRBY ESQ 1.00 X 4000 0 0 MR WILLIAM M MACKIE JR 1.00 X 4500 0 0 RENEE R BROOKS 1.00 X 0 0 0 MRR JASON CASKEY CPA 1.00 X 4000 0 0 NEIL E GRAYSON ESQ 1.00 X 6000 0 0 MR JEFFREY R SCOTT 1.00 X 4500 0 0 MS BARBARA F WESTON 1.00 X 2000 0 0 MR VINCE V FORD 1.00 X 1500 0 0 JULIA BOYD 1.00 X 2000 0 0 LOREN CARLSON 1.00 X 7500 0 0 ROBERT HILL 1.00 X 5500 0 0 HARRY BROWN 40.00 X 157001 0 19260 THOMAS DUNNIGAN 40.00 X 168086 0 21448 ANNE HARVIN GAVIN 40.00 X 107837 0 12162 DAVID SIMON 40.00 X 101362 0 10739 JANE HONEYCUTT 40.00 X 127766 0 14560 1020471 0 107135 6 0 1 0 MCNAIR LAW FIRM 1221 MAIN ST 18 COLUMBIA SC 29201 LEGAL MATTERS 210890 WILLIAMS & FUDGE 300 CHATHAM AVENUE ROCK HILL SC 29731 COLLECTION SERVICES-PRIVATE LOANS 153757 DERRICK STUBBS & STITH 508 HAMPTON ST 1ST FLOOR COLUMBIA SC 29201 AUDIT/ACCOUNTING SERVICES 116020 ALFRED WILLIAMS & COMPANY 410 S SALISBURY ST STE 200 RALEIGH NC 27601 WORKSTATION INSTALLATIONS 115222 NELSON MULLINS RILEY & SCARBOROUGH LLP 1320 MAIN STREET 17TH FLOOR COLUMBIA SC 29201 LEGAL MATTERS 113272 5 27113745 27113745 STUDENT LOAN INTEREST 900099 147065161 147065161 LATE CHARGES 900099 2182323 2182323 SCEAA REMITTANCE 900099 643034 643034 MISCELLANEOUS INCOME 900099 459118 459118 MISC. PAYMENTS OF STUD 900099 -9847 -9847 -72028792 -72028792 78310997 745261 745261 169875 537694 -367819 -367819 -367819 105802184 77943178 0 745261 510145 382609 127536 53500 48150 5350 4169608 3791206 378402 769194 685247 83947 562948 502179 60769 335950 299514 36436 589092 548253 40839 149958 135392 14566 4220150 4220150 161917 135102 26815 537694 430155 107539 71365 64225 7140 52626 47363 5263 32534496 32534496 165823 149241 16582 79692 71723 7969 ORIGINATION FEES 13322920 13322920 LOAN LOSS EXPENSE 9207469 9207469 BORROWER INCENTIVES 6005741 6005741 TLP CANCELLATIONS 5063394 5063394 8341274 8083446 257828 86904956 85727975 1176981 0 263542320 210038953 96389978 91604919 3332884597 3052531484 20693 111139 10270350 2668577 3047547 7601773 44955270 56760025 11097763 8728028 3751938168 3427376321 47105243 49917579 312831 2088543 3226120662 2880753014 12878884 12222187 3286417620 2944981323 X 188112333 216629837 277408215 265765161 465520548 482394998 3751938168 3427376321 X 18897228 -2022778 X X 0 1 1 X 1 1 X 64300598 4222822 50256006 36705414 27113745 182598585 65583547 72193006 75036369 212812922 64300598 4222822 115839553 108898420 102150114 395411507 0 0 0 395411507 8541845 5273921 726475 921135 745261 16208637 8541845 5273921 726475 921135 745261 16208637 153597340 154889477 8580180 5044809 2906809 325018615 226439783 164386220 125146208 114864364 105802184 736638759 0.53680 0.02200 X SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: SOUTH CAROLINA STUDENT LOAN CORPORATION CHANGED ITS REASON FOR PUBLIC CHARITY STATUS FROM LINE 7 TO LINE 9 AS THE CORPORATION NOW DERIVES ITS SUPPORT MAINLY FROM ACTIVITIES WHICH SUPPORT EXEMPT ORGANIZATIONS. 929900 929900 6484448 590411 5894037 2782439 2004603 777836 73563 73563 0 7601773 DUE TO US DEPARTMENT OF EDUCATION 12222187 12222187 105802184 86904956 18897228 33473 -2056251 -2022778 16874450 106455553 33473 619896 653369 105802184 0 105802184 88228762 1323806 1323806 86904956 0 86904956 PART XI, LINE 8 - OTHER ADJUSTMENTS: EMPLOYEE BENEFITS-RELATED CHANGES OTHER THAN NET PERIODIC PENSION COST -2056251. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSE INCLUDED ON LINE 6B 537694. FROM EDVANTAGE INCOME 82202. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSE INCLUDED ON LINE 6B 537694. FROM EDVANTAGE EXPENSES 786112. X 0 0 0 0 0 0 0 0 0 CHARLIE SANDERS 304919 0 0 0 0 0 28966 0 0 0 333885 0 318654 0 HARRY BROWN 157001 0 0 0 0 0 19260 0 0 0 176261 0 157663 0 THOMAS DUNNIGAN 168086 0 0 0 0 0 21448 0 0 0 189534 0 176399 0 ORGANIZATION MISSION STATEMENT FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: THE PURPOSE OF THE CORPORATION IS TO RECEIVE, DISBURSE AND ADMINISTER FUNDS FOR EDUCATIONAL PURPOSES WITHOUT PECUNIARY GAIN OR PROFIT. ADDITIONALLY, THE PURPOSE OF THE CORPORATION IS TO AID IN THE FULFILLMENT OF THE DESIRE AND DIRECTION OF THE PEOPLE OF SOUTH CAROLINA IN MAKING LOANS AVAILABLE TO RESIDENTS TO ENABLE THEM TO ATTEND ELIGIBLE INSTITUTIONS WHICH ARE BEYOND THE PUBLIC SCHOOL LEVEL. THE CORPORATION IS ALSO EMPOWERED TO ACT AS AN AGENT FOR OTHER INSTITUTIONS AND FOUNDATIONS TO RECEIVE, INVEST, HANDLE AND DISBURSE FUNDS, AND TO SERVICE STUDENT LOANS, GUARANTEES OF STUDENT LOANS, INSURANCE OF STUDENT LOANS AND ACQUISITIONS OF CONTINGENT INTEREST IN STUDENT LOANS FOR OTHER PRIVATE, OR GOVERNMENTAL INSTITUTIONS AND FOUNDATIONS. IN GENERAL, THE CORPORATION IS TO ENGAGE IN AND CARRY ON THE FUNCTION OF MAKING, HANDLING, SERVICING, AND DEALING WITH STUDENT LOANS, THE RECEIVING, INVESTING AND DISBURSING OF FUNDS, AND ALL THINGS INCIDENT THERE TO, PROVIDED THAT NO ACTIVITY SHALL BE CARRIED ON WHICH IS NOT PERMITTED BY A CORPORATION EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501 (C)(3) OF THE INTERNAL REVENUE CODE. ORGANIZATION MISSION STATEMENT FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: THE PURPOSE OF THE CORPORATION IS TO RECEIVE, DISBURSE AND ADMINISTER FUNDS FOR EDUCATIONAL PURPOSES WITHOUT PECUNIARY GAIN OR PROFIT. ADDITIONALLY, THE PURPOSE OF THE CORPORATION IS TO AID IN THE FULFILLMENT OF THE DESIRE AND DIRECTION OF THE PEOPLE OF SOUTH CAROLINA IN MAKING LOANS AVAILABLE TO RESIDENTS TO ENABLE THEM TO ATTEND ELIGIBLE INSTITUTIONS WHICH ARE BEYOND THE PUBLIC SCHOOL LEVEL. THE CORPORATION IS ALSO EMPOWERED TO ACT AS AN AGENT FOR OTHER INSTITUTIONS AND FOUNDATIONS TO RECEIVE, INVEST, HANDLE AND DISBURSE FUNDS, AND TO SERVICE STUDENT LOANS, GUARANTEES OF STUDENT LOANS, INSURANCE OF STUDENT LOANS AND ACQUISITIONS OF CONTINGENT INTEREST IN STUDENT LOANS FOR OTHER PRIVATE, OR GOVERNMENTAL INSTITUTIONS AND FOUNDATIONS. IN GENERAL, THE CORPORATION IS TO ENGAGE IN AND CARRY ON THE FUNCTION OF MAKING, HANDLING, SERVICING, AND DEALING WITH STUDENT LOANS, THE RECEIVING, INVESTING AND DISBURSING OF FUNDS, AND ALL THINGS INCIDENT THERE TO, PROVIDED THAT NO ACTIVITY SHALL BE CARRIED ON WHICH IS NOT PERMITTED BY A CORPORATION EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501 (C)(3) OF THE INTERNAL REVENUE CODE. NEW PROGRAM SERVICES FORM 990, PART III, LINE 2 ON MAY 17, 2011 SCSLC ENTERED INTO A MEMORANDUM OF UNDERSTANDING WITH THE DEPARTMENT OF EDUCATION (DOE) TO PROVIDE DIRECT LOAN (DL) SERVICING ACTIVITIES AS A SUBCONTRACTOR FOR LOANS HELD BY THE DOE. SCSLC WAS AWARDED AUTHORITY TO OPERATE (ATO) STATUS ON JUNE 25, 2012 FROM THE DOE. SCSLC WAS AWARDED GO LIVE STATUS ON AUGUST 20, 2012 AND BEGAN PROVIDING SERVICES FOR THE DOE IN SEPTEMBER 2012. THESE SERVICES ARE BEING PROVIDED BY SCSLC UNDER THE D/B/A NAME OF EDMANAGE. ON NOVEMBER 23, 2011 SCSLC SIGNED A CONTRACT WITH EDUCATIONAL LOAN SERVICING, LLC (ELS) D/B/A CAMPUS PARTNERS (CP) AS A VENDOR TO PROVIDE A PLATFORM AND SERVICING FUNCTIONALITY SUFFICIENT TO MEET THE REQUIREMENTS FOR SERVICING THE DOE DIRECT LOANS. IN AN EFFORT TO FURTHER SUPPORT THE DEVELOPMENT BY CP OF THE SOFTWARE FOR THE DL SERVICING ACTIVITY, SCSLC INVESTED $4,000,000 INTO CP FOR 27.67% OWNERSHIP OF THE COMPANY. SUBSEQUENTLY, ON JUNE 20, 2012, SCSLC MADE AN OFFER UNDER CERTAIN CONDITIONS TO PROVIDE CP A $6,000,000 REVOCABLE LINE OF CREDIT TO FURTHER ASSIST IN THE DEVELOPMENT OF THE SOFTWARE PLATFORM REQUIRED FOR THE SERVICING OF DIRECT LOANS FOR DOE. ONE OF THE CONDITIONS OF THE REVOCABLE LINE OF CREDIT WAS THAT SCSLC WOULD, AS A RESULT OF THE LINE OF CREDIT AGREEMENT, BECOME THE MAJORITY OWNER (51%) OF CP. DOCUMENTATION WAS COMPLETED JULY 20, 2012 TO FINALIZE THE LINE OF CREDIT AND ON JULY 20,2012 SCSLC ASSUMED 51% OWNERSHIP OF CP. CP IS ALSO PROVIDING ITS SOFTWARE PLATFORM FOR DL SERVICING FOR SEVERAL OTHER NOT FOR PROFIT (NFP'S) AS THEY ALSO PERFORM DL SERVICING ACTIVITIES FOR DOE. CHANGES IN PROGRAM SERVICES FORM 990, PART III, LINE 3 DURING THE CURRENT REPORTING PERIOD, EDVANTAGE DETERMINED THAT IT WOULD NOT QUALIFY FOR THE SBA SET ASIDE FOR THE PERFORMANT/DCS SUBCONTRACTING SERVICES DUE TO IT'S AFFILIATION WITH SOUTH CAROLINA STUDENT LOAN CORP. AS A RESULT AND WITH PERFORMANT/DCS ASSISTANCE, EDVANTAGE HAS DECIDED TO SEEK A LARGE DIRECT LOAN COLLECTION CONTRACT WITH THE DEPARTMENT OF EDUCATION (DOE) WHEN THE DOE OPENS IT'S NEXT BIDDING PROCESS TO AWARD NEW DL COLLECTION SERVICES. EDVANTAGE INTENDS TO CONTINUE TO OPERATE THE PERFORMANT/DCS COLLECTIONS SOFTWARE PLATFORM THROUGH A CONTRACT AND SEAT LICENSING PROCESS IF EDVANTAGE RECEIVES A LARGE DL COLLECTIONS AWARD FROM DOE AS A RESULT OF THE NEW BIDDING OPPORTUNITY. PROGRAM SERVICE STATEMENT FORM 990, PART III, LINE 4A, EXEMPT PURPOSE ACHIEVEMENTS: PROVIDE STUDENT LOANS TO ELIGIBLE BORROWERS FOR HIGHER EDUCATION AND SERVICE THE LOANS UNTIL PAID BY THE BORROWERS. FORM 990, PART VI, SECTION B, LINE 11 THE COMPLETED FORM 990 WAS SENT TO THE CORPORATION FOR REVIEW AND FINAL SIGNATURE BEFORE SUBMISSION TO THE IRS. THE PROCESS ENTAILED A REVIEW BY THE CHIEF FINANCIAL OFFICER, THE CHIEF EXECUTIVE OFFICER AND ALL MEMBERS OF THE AUDIT COMMITTEE OF THE CORPORATION. ANY QUESTIONS/ISSUES WERE CLARIFIED AND ADDRESSED AS NECESSARY BEFORE THE FINAL SIGNATURE AND SUBMISSION. FORM 990, PART VI, SECTION B, LINE 12C A WRITTEN CONFLICT OF INTEREST POLICY IS DISTRIBUTED WITH THE MEETING AGENDA PACKET MATERIALS FOR THE AUGUST MEETING OF THE BOARD OF DIRECTORS FOR THEIR COMPLETION. ALL FORMS ARE COLLECTED AND REVIEWED BY STAFF FOR ANY APPARENT CONFLICT. ALL EMPLOYEES COMPLETE DOCUMENTATION ANNUALLY TO DISCLOSE ANY CONFLICTS OF INTEREST. NEW HIRES COMPLETE THIS AT THE TIME OF HIRING. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF THE CORPORATION DETERMINES THE COMPENSATION OF THE PRESIDENT/CEO. MEMBERS OF THE COMPENSATION COMMITTEE ARE VERY KNOWLEDGEABLE ABOUT EXECUTIVE COMPENSATION IN GENERAL. ONE MEMBER IS A FORMER CEO OF A STUDENT LOAN PROVIDER AND THE CHAIRMAN OF THE COMPENSATION COMMITTEE IS A FORMER SENIOR VICE PRESIDENT AND HUMAN RESOURCES DIRECTOR OF A COMMUNITY BANK. NEITHER THE PRESIDENT/CEO NOR OTHER MEMBERS OF THE CORPORATION STAFF ARE INVOLVED IN THESE CEO COMPENSATION DISCUSSIONS. TOP MANAGEMENT COMPENSATION IS DETERMINED BY THE PRESIDENT/CEO, WHO IS FAMILIAR WITH COMPENSATION STRUCTURES IN THE REGIONAL MARKETPLACE FOR OUR TYPE OF ORGANIZATION. BOTH THE COMPENSATION COMMITTEE AND THE CEO USE AN INDUSTRY COMPENSATION SERVICE TO ASSIST IN THEIR COMPENSATION DECISIONS. FORM 990, PART VI, SECTION C, LINE 19 THE CORPORATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST TO THE PUBLIC. THE CORPORATION'S YEARLY AUDITED FINANCIAL STATEMENTS ARE POSTED TO ITS WEBSITE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 33473. EMPLOYEE BENEFITS-RELATED CHANGES OTHER THAN NET PERIODIC PENSION COST -2056251. TOTAL TO FORM 990, PART XI, LINE 5: -2022778. FORM 990, PART XII, LINE 2C: THE AUDIT COMMITTEE OF THE CORPORATION ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS CONSOLIDATED FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDEDNT ACCOUNTANT. EDVANTAGE CORPORATION 8906 TWO NOTCH RD COLUMBIA SC 29223 451482379 DIRECT LOAN COLLECTIONS SC 501(C)(3) LINE 9 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 EDVANTAGE CORP I 18480 RENT BASED ON SQUARE FOOTAGE UTIL SCHEDULE R, PART V, 1I: EDVANTAGE CORPORATION IS NOTED HERE AS A TAX-EXEMPT ORGANIZATION. FORM 1023 WAS FILED IN JANUARY 2013 REQUESTING TAX-EXEMPT STATUS. SCHEDULE R DISCLOSURE IS AS FOLLOWS: EDVANTAGE CORPORATION WAS FORMED APRIL 1, 2011 AS A SOUTH CAROLINA NONPROFIT PUBLIC BENEFIT CORPORATION WITH THE PRIMARY PURPOSE OF BECOMING A CONTRACTOR FOR DIRECT LOAN COLLECTIONS FOR THE UNITED STATES DEPARTMENT OF EDUCATION (THE "DOE") UNDER THE SMALL BUSINESS ADMINISTRATION GUIDELINES (THE "SBA"). THE CORPORATION MADE A CONTRIBUTION OF CAPITAL AT THE INCEPTION OF EDVANTAGE IN EXCHANGE FOR ALL OF THE OWNERSHIP RIGHTS IN EDVANTAGE CORPORATION. AT THE TIME OF THE FILING OF FORM 990, FOR THE PERIOD ENDING JUNE 30, 2011, EDVANTAGE INTENDED TO APPLY FOR ITS OWN EXEMPTION FROM FEDERAL INCOME TAXATION BY SUBMITTING FORM 1023. FORM 1023 WAS SUBMITTED IN JANUARY 2013. EDVANTAGE ENTERED INTO A CONTRACT WITH PERFORMANT/DCS ("EDVANTAGE CONTRACT") AS A SUBCONTRACTOR TO PROVIDE COLLECTION SERVICES AND TO PREPARE ITSELF FOR EVENTUALLY APPLYING FOR AND BECOMING A CONTRACTOR FOR DOE. PERFORMANT/DCS IS A LARGE CONTRACTOR FOR DOE. EDVANTAGE BEGAN PERFORMING THE SUBCONTRACT UNDER THE SMALL BUSINESS SET-ASIDE, AS DEFINED BY REGULATIONS OF THE SBA. WHEN EDVANTAGE APPLIED FOR SMALL BUSINESS CERTIFICATION, IT WAS LEARNED THAT IT WOULD NOT QUALIFY DUE TO SBA REQUIREMENTS RELATED TO REVENUE OF OUR PARENT AND NON PROFIT STATUS. EDVANTAGE HAS UNSUCCESSFULLY ATTEMPTED TO GET A RULING FROM SBA SO THAT IT CAN CONTINUE TO BE A SUBCONTRACTOR FOR PERFORMANT/DCS UNDER THE SMALL BUSINESS SET ASIDE. EDVANTAGE CONTINUES TO OPERATE AS A SUBCONTRACTOR FOR PERFORMANT/DCS AND IS PLANNING TO BID AS A LARGE CONTRACTOR TO PROVIDE COLLECTION SERVICES FOR DOE WHEN THE DOE OPENS BIDS FOR NEW CONTRACTORS, HOPEFULLY DURING 2013. PERFORMANT/DCS HAS AGREED TO ASSIST EDVANTAGE IN ITS FILING TO OBTAIN A BID FROM DOE FOR COLLECTION SERVICES WHEN THE BIDDING PROCESS IS OPENED, AND ADDITIONALLY PERFORMANT/DCS HAS AGREED TO ALLOW EDVANTAGE TO CONTINUE USING ITS SOFTWARE TO PERFORM THE FUNCTION REQUIRED FOR THE COLLECTION SERVICES IF EDVANTAGE IS SUCCESSFUL IN OBTAINING A BID FROM DOE. EDVANTAGE WILL OPERATE THE SOFTWARE OF PERFORMANT BASED ON PAYMENT OF SEAT LICENSES AND SPECIFIC CONTRACT ARRANGEMENTS ONCE EDVANTAGE RECEIVES ITS OWN COLLECTION SERVICES CONTRACT WITH DOE.