SOUTH CAROLINA

Future Scholar 529 College Savings Plan

Type: savings

Phone: 888-244-5674

State tax deduction for residents: All contributions are deductible

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $250 / $265,000.

This is a decent plan that allows South Carolina residents to deduct all of their contributions to this plan. The problem is Banc of America Advisors, which has been accused of serious wrongdoing, runs the plan. The plan offers a sensibly paced age-based portfolio that has performed slightly above average and six blended fund portfolios and three single fund portfolios that haven't performed quite as well.

Expenses for residents are 0.4% to 1.43%. Nonresidents must buy broker-sold shares and pay up to an additional 1.1% per year, plus a $25 annual fee.

South Carolina Tuition Prepayment Program

Type: Prepaid (contract)

Phone: 888-7SC-GRAD

State tax deduction for residents: All contributions are deductible

Open to nonresidents: No

Refund provisions: Penalty of 100% of earnings in first year, then 20% of earnings plus $75 fee.

Minimum/maximum contributions: $11,989 for a community college contract for a newborn / $25,566 for a four-year university contract for a tenth grader.

Enrollment: October through January

Other: Beneficiary must be in tenth grade or younger to enroll

Your return would be higher than the average if the contract were used at a more expensive college, such as the University of South Carolina at Columbia; lower at a less-expensive school like Coastal Carolina University; and equal to the average if the money were used at a private college or out-of-state (not counting a $30 fee to transfer the proceeds). There's an $85 enrollment fee, plus fees for contract changes.

The state does not offer a full-faith-and-credit guarantee but does promise at least a 4% return on your contributions if the program ever folds.