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South Carolina StudentLoan CorporationReport on Consolidated Financial StatementsFor the year ended June 30, 2020

South Carolina Student Loan CorporationContentsPageIndependent Auditor's Report . 1‐2Financial StatementsConsolidated Statement of Financial Position . 3‐4Consolidated Statement of Activities . 5Consolidated Statement of Functional Expenses . 6Consolidated Statement of Cash Flows . 7Notes to Consolidated Financial Statements . 8‐34Supplementary InformationConsolidated Schedule of Financial Position by Fund ‐ Without Restrictions . 35Consolidated Schedule of Financial Position by Fund ‐ With Restrictions. 36Consolidated Schedule of Activities by Fund ‐ Without Restrictions. 37Consolidated Schedule of Activities by Fund ‐ With Restrictions . 38Consolidated Schedule of Cash Flows by Fund ‐ Without Restrictions . 39Consolidated Schedule of Cash Flows by Fund ‐ With Restrictions . 40Consolidated Schedule of Property and Equipment . 41Schedule of Expenses for the Operating Fund . 42Federal Reporting and Single Audit AwardsSchedule of Expenditures of Federal Awards . 43Independent Auditor's Report on Internal Control OverFinancial Reporting and on Compliance and Other MattersBased on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards . 44‐45Independent Auditor's Report on Compliance for EachMajor Federal Program and Report on Internal ControlOver Compliance in Accordance with the UniformGuidance . 46‐48Schedule of Findings and Questioned Costs . 49‐50Summary Schedule of Prior Audit Findings. 51Corrective Action Plan . 52

Independent Auditor's ReportTo the Board of DirectorsSouth Carolina Student Loan CorporationColumbia, South CarolinaReport on the Financial StatementsWe have audited the accompanying consolidated financial statements of South Carolina Student Loan Corporation(the “Corporation”), which comprise the consolidated statement of financial position as of June 30, 2020, the relatedconsolidated statements of activities, functional expenses and cash flows for the year then ended, and the relatednotes to the consolidated financial statements (collectively, the “financial statements”).Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance withaccounting principles generally accepted in the United States of America; this includes the design, implementation,and maintenance of internal control relevant to the preparation and fair presentation of consolidated financialstatements that are free from material misstatement, whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our auditin accordance with auditing standards generally accepted in the United States of America and the standards applicableto financial audits contained in Government Auditing Standards, issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significantaccounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial positionof South Carolina Student Loan Corporation as of June 30, 2020, and the changes in its net assets and its cash flowsfor the year then ended in accordance with accounting principles generally accepted in the United States of America.elliottdavis.com

Report on Summarized Comparative InformationWe have previously audited South Carolina Student Loan Corporation’s 2019 financial statements, and weexpressed an unmodified opinion on those audited financial statements in our report dated September 30, 2019.In our opinion, the summarized comparative information presented herein as of and for the year ended June 30,2019, is consistent, in all material respects, with the audited financial statements from which it has been derived.Supplementary InformationOur audit was conducted for the purpose of forming an opinion on the financial statements as a whole. Theconsolidated schedules by fund, consolidated schedule of property and equipment, schedule of expenses for theoperating fund and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards are presented for purposes of additional analysis and are not a required part of the financial statements. Suchinformation is the responsibility of management and was derived from and relates directly to the underlyingaccounting and other records used to prepare the financial statements. Such information has been subjected to theauditing procedures applied in the audit of the financial statements and certain additional procedures, includingcomparing and reconciling such information directly to the underlying accounting and other records used to preparethe financial statements or to the financial statements themselves, and other additional procedures in accordancewith auditing standards generally accepted in the United States of America. In our opinion, the information is fairlystated, in all material respects, in relation to the financial statements as a whole.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report dated September 30, 2020,on our consideration of the Corporation’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. Thepurpose of that report is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the Corporation’s internal control over financial reporting and compliance.Columbia, South CarolinaSeptember 30, 20202

South Carolina Student Loan CorporationConsolidated Statement of Financial PositionAs of June 30, 2020 (with comparative amounts for 019TotalsMemorandumOnlyAssetsCurrent assetsCash and cash equivalentsInvestmentsCurrent portion of student loans receivableCurrent portion of teacher loans receivableInterest due from borrowersAccounts receivableDue from United States Department of EducationDue from servicersDue from South Carolina State Education Assistance AuthorityAccrued investment incomePrepaid expensesDue from (to) other fundsTotal current assets 100,31027,798‐531,188203,575223,746,054 ,061570,6603,22662,203(203,575)166,235,707 8,289‐993,371598,4583,226593,391‐389,981,761 1,325,769Long‐term receivables and other assetsStudent loans receivable, net of current portionand allowance for loan loss of 36,820,921Teacher loans receivable, net of current portionand allowance for loan cancellations of 10,248,037Overfunded defined benefit planDue from (to) other fundsTotal long‐term receivables and other ,45928,732,0241,644,316‐1,128,873,212Property and equipmentLandBuildingFurniture and equipmentAutomobilesLess accumulated depreciationNet property and equipmentTotal 171,720353,343,840‐‐‐‐‐‐ ,002)5,171,720 ,221)5,464,608 1,655,663,589 See Notes to Consolidated Financial Statements(Continued)3

South Carolina Student Loan CorporationConsolidated Statement of Financial PositionAs of June 30, 2020 (with comparative amounts for 019TotalsMemorandumOnlyLiabilities and Net AssetsCurrent liabilitiesCurrent maturities of notes payable ‐ finance loansCurrent maturities of bonds payableInterest payableAccounts payableUnearned revenuesCustomer refunds payableTeacher loan liabilityCompensated absencesDue to United States Department of EducationTotal current liabilities Noncurrent liabilitiesNotes payable ‐ finance loans, net of current maturitiesBonds payable, net of current maturitiesPayable to the State of South CarolinaDue to South Carolina State Education Assistance AuthorityTotal noncurrent liabilitiesTotal 55155,2223,254,512 ‐4,401,20788,252,122 58,1361,054,5514,456,42991,506,634 53,343,840‐‐‐211,730,469 19,797 00,467 1,655,663,589Net AssetsNet assets with restrictionsBond indentures ‐ current debt serviceBond indenturesTotal net assets with restrictionsNet assets without restrictionsBoard designated for Power:EdUndesignatedTotal net assets without restrictionsTotal net assetsTotal liabilities and net assets See Notes to Consolidated Financial Statements4

South Carolina Student Loan CorporationConsolidated Statement of ActivitiesFor the year ended June 30, 2020 (with comparative amounts for esIncome from United States Department of Education:Student loan interest ‐ subsidizedSpecial allowancesStudent loan interest ‐ unsubsidizedInvestment incomeUnrealized (loss) gain on investmentsLate chargesMiscellaneous payments of student loansRemittance from South Carolina State Education Assistance Authorityfor operating costsServicing feesMiscellaneous (loss) incomeOther incomeNet assets released from restrictionsTotal revenues 66ExpensesPersonnelContractual servicesGeneral operatingInterest on debtPayments to South Carolina State Education Assistance Authorityfor student loan incomeLoan feesReinsurance expenseBorrower incentivesBroker dealer feesLoan loss expenseTotal expensesChanges in net assetsNet assetsBeginningEnding ,16311,806 31,22312,072 8See Notes to Consolidated Financial Statements 2019TotalsMemorandumOnly 212,100,534211,730,469 556,000,467561,819,797 545,648,804556,000,467