20% of TSP Participants Have a Loan Against Their Accounts

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By on October 28, 2011 in Current Events with 0 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.

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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.