20% of TSP Participants Have a Loan Against Their Accounts
by, 10-28-2011 at 11:57 AM (5780 Views)
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 $8,855.
Total ($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.