FRTIBFinal Rule
Procedures for Applying Payments to Principal and Interest upon Loan Reamortization
Finance & BankingLabor & Workplace
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Summary
This regulation sets out the rules for how the Federal Retirement Thrift Investment Board (FRTIB) will apply loan payments when borrowers restructure their federal employee retirement loans. It clarifies which portions of payments go toward principal (what you owe) versus interest (the cost of borrowing), ensuring borrowers understand exactly where their money is going.
Key Points
- 1The FRTIB established clear procedures for splitting loan payments between principal and interest when federal employees restructure their retirement plan loans
- 2This affects federal employees and military service members who borrow from their Thrift Savings Plan (TSP) accounts and need to change their loan terms
- 3The regulation ensures borrowers receive transparent accounting of how each payment is allocated, making it easier to understand their debt payoff timeline
- 4The rules apply when loans are 'reamortized,' which means recalculating the payment schedule due to changes in loan terms or conditions
- 5This helps prevent confusion and disputes about how much principal is actually being paid down versus how much is going to interest charges
Key Dates
Published
July 9, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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