20% of TSP Participants Have a Loan Against Their Accounts

By on October 28, 2011 in Current Events with 39 Comments

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.

For more information about loans against your TSP account, see the TSP’s web site.

© 2016 Ian Smith. All rights reserved. This article may not be reproduced without express written consent from Ian Smith.

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

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