[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1655.16]

[Page 291]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655_LOAN PROGRAM--Table of Contents
 
Sec.  1655.16  Reamortization.

    (a) A participant may request reamortization of a loan at any time 
to change the amount of the payments, unless the loan is in a default 
status.
    (b) Upon reamortization, the outstanding principal balance remains 
the same. Any accrued interest is paid off first before payments are 
applied to principal and current interest.
    (c) The interest rate on a reamortized loan will be the same as the 
interest rate on the original loan.
    (d) A participant may request reamortization by using the TSP Web 
site or by contacting a TSPSO participant service representative.
    (e) When a participant's pay cycle changes for any reason, he or she 
should request a reamortization to adjust the scheduled payment to an 
equivalent amount in the new pay cycle. If the new pay cycle results in 
fewer payments per year and the participant does not reamortize the 
loan, the loan may be declared a taxable distribution pursuant to Sec.  
1655.15(a)(3).