TSP to Curtail Loan Program

The Thrift Savings Plan has decided to alter several of its loan policies in order to counter what officials there consider over-use of the program by certain employees who churn through numerous loans and effectively use their retirement savings as a checking account. Effective July 1, the TSP will charge a $50 fee to process each loan application-currently, the borrower pays no specific charge and the costs are shared by all investors-and participants will no longer be able to have two “general purpose” loans at the same time-they still will be able to have one general purpose loan and one residential loan, however. In addition, after paying off a loan, a TSP participant will not be eligible to apply for another one for 60 days.