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|
|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.