This state report card is derived from "Measuring Up 2004," the national report card for higher education. Its purpose is to provide the public and policymakers with information to assess and improve postsecondary education in each state. "Measuring Up 2004" is the third in a series of biennial report cards. The report card grades states in six overall performance categories: (1) Preparation: How adequately are students in each state being prepared for education and training beyond high school?; (2) Participation: Do state residents have sufficient opportunities to enroll in education and training beyond high school?; (3) Affordability: How affordable is higher education for students and their families?; (4) Completion: Do students make progress toward and complete their certificates and degrees in a timely manner?; (5) Benefits: What benefits does the state receive as a result of having a highly educated population?; and (6) Learning: What is known about student learning as a result of education and training beyond high school? Findings for South Carolina include: (1) Over the past decade, South Carolina has improved in preparing students to succeed in college. Despite that progress, South Carolina receives only a C in preparation this year; (2) South Carolina has shown improvement in enrolling students in higher education over the past decade. However, this year South Carolina receives a C- in participation because other states performed better; (3) South Carolina has lost ground in providing affordable higher education opportunities over the past decade. Like many other states this year, South Carolina receives an F in affordability; (4) Over the past decade, South Carolina has shown consistently good performance in the proportion of students earning a certificate or degree in a timely manner. This year South Carolina receives a B in completion; (5) Over the past decade, South Carolina has reaped greater benefits from having a more highly educated population. Despite that improvement, South Carolina receives a C in benefits this year; and (6) South Carolina residents perform well below the national average on literacy measures, reflecting low levels of educational attainment. Supported by a strong two-year technical college system, higher proportions of college graduates appear prepared to enroll in licensed technical careers and professions, while below-average proportions take graduate admissions tests and perform competitively. College graduates exceed national averages on most direct measures of student learning, with the exception of writing for two-year college students. This report also includes additional information, questions and answers, state grades, and "Measuring Up 2004" resources. [For "Measuring Up 2004: The National Report Card on Higher Education," see ED508096.]