• TSP-20, Loan Application
  • TSP-26, Loan Payment Coupon
  • TSP-41, Notification to TSP of NonPay Status
Do you have a traditional and a Roth balance?
Your loan payments (including interest) are deposited back into the traditional and Roth balances of your account in the same proportion used for your loan disbursement.  The repayment amount is invested in your TSP account according to your most recent contribution allocation.

Loan Payments

Payroll Deductions

When the TSP pays out your loan, it will notify your payroll office immediately to begin deducting loan payments from your salary each pay period.

Check your leave and earnings statement to be sure that loan payments have started and that they are in the correct amount. Contact your agency or service if payments have not started or if they are in the wrong amount.

Be aware that you are responsible for the repayment of your loan regardless of whether your agency or service misses a payment. For more information, visit Missed Payments.

If you have two TSP accounts and you want to combine your accounts, you must close any loan in the account you are moving before the accounts can be combined.

Loan Interest

When you repay your loan, you repay it with interest (visit Loan Costs). The repayment amount gets deposited back into your TSP account and is invested according to your most recent contribution allocation.

Daily interest on your loan is calculated as each payment is posted and is based on the number of days since the last loan payment and the outstanding loan balance.

Your loan interest payments are not tax deductible.

Extra Payments

You can make extra loan payments (in addition to your payroll deduction) at any time using a personal check, cashier's check, or money order. You must send Form TSP-26, Loan Payment Coupon with your extra payments.

If you use an online banking service to make extra loan payments, be sure to refer to the Loan Payment Coupon to ensure that the information it requires gets included on your bank check. If any information is missing, the check will be returned.

Missed Payments

You are responsible for ensuring that the correct loan payments are submitted on time regardless of whether your agency or service missed your loan payment.

Making up Missed Payments At the end of each calendar quarter, the TSP identifies all loans with missed payments. If you have missed more than 2½ payments, the TSP will send a notice indicating that you have until the end of the following calendar quarter to pay the missed amount. You must pay the missed amount directly to the TSP using your own personal funds to avoid a taxable distribution. Your payroll office cannot make up missed payments from your pay.

Exceptions for Missed Payments Certain exceptions for missed payments are granted if you are in nonpay status. For more information, visit Nonpay Status.

Tracking Your Loan

The TSP will report your loan transactions on your quarterly participant statement. Review this information carefully and be sure to report any discrepancies to your agency or service.

You can also track your loan balance and the status of your payments in the My Account: TSP Loans section on the TSP website.