Feds Propose Easier Loan Payoffs for Thrift Savings Plan
Published Date: 4/18/2025
Proposed Rule
Summary
If you have a loan in the Thrift Savings Plan (TSP), a new rule is proposed to make paying off your loan easier. Instead of paying all the interest first before touching the principal, your unpaid interest will be added to your loan balance and paid off together. This change could affect your loan payments starting after May 19, 2025, once the rule is finalized.
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
TSP loan reamortization: interest added to principal
This proposed rule would change how Thrift Savings Plan (TSP) loans are reamortized. If you have a TSP loan that is reamortized, any accrued interest would be added to your outstanding principal balance when the loan is reamortized instead of requiring accrued interest to be paid off first. This is a proposed rule; comments are due on or before May 19, 2025.
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Key Dates
Department and Agencies
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