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Bursar's Office

Setoff Debt Collection Act

The Setoff Debt Collection Act is designed to facilitate collection of debts owed by an individual to an agency of the state.

Debtors to the university, which is a state agency, with debts of $50.00 or greater and in arrears of 90 days or more will be reported to the S.C. Department of Revenue for potential set off against their S.C. individual in-come tax refunds. The Department of Revenue will:

  • place a hold on state income tax returns due to debtors whose names have been submitted
  • notify the taxpayer that the university has a claim against their income tax refund
  • forward to the university the amount of the refund claimed less a $25 collection fee

The debtor must contact the university's Student Collections for additional information regarding his/her account. Student records will remain tagged until the financial obligation is satisfied.

Filing a Written Protest

The act gives the alleged debtor the right to file a written protest for the validity of the debt. The written protest must be submitted within 30 days from the date of notification of the university's claim and contain the information below:

  • your name
  • your address
  • your social security number
  • type of debt in dispute
  • detailed statement of all reasons you disagree with the debt amount or dispute that you owe the debt

The original written protest must be mailed to University of South Carolina. For complete information, please contact Student Collections at 803-777-4233 or

The debtor waives the right to protest if he/she fails to file a written request within 30 days.

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