According to data recently released from the Federal Retirement Thrift Investment Board for August, approximately one in every five participants has a loan outstanding against his or her account. That amounts to a total of 891,341 people.
The average loan amount in August was $8,919, and the average across the previous five months ended in August is $8,855.
| Aug. 2011 | July 2011 | June 2011 | May 2011 | April 2011 | |
|---|---|---|---|---|---|
| Total ($m) | $280,845 | $287,691 | $289,330 | $290,455 | $290,722 |
| Participants | 4,498 | 4,493 | 4,486 | 4,477 | 4,468 |
| Loans Outstanding | 891,341 | 884,181 | 878,441 | 873,269 | 868,321 |
| Ratio | 5.05 | 5.08 | 5.11 | 5.13 | 5.15 |
| Amount ($m) | 7,950 | 7,851 | 7,774 | 7,701 | 7,648 |
| Average Loan Amount | $8,919 | $8,879 | $8,850 | $8,819 | $8,808 |
From where do these loans originate? The TSP allows participants to borrow money from their accounts. Two types of loans are available: general purpose and residential. The former can be used for anything, requires no documentation, and has a repayment term of one to five years. The latter must be used only for the purchase or construction of a primary residence, requires documentation, and has a repayment term of one to fifteen years.
