5 CFR § 1655.17 - Prepayment.

---
identifier: "/us/cfr/t5/s1655.17"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "5 CFR § 1655.17 - Prepayment."
title_number: 5
title_name: "Administrative Personnel"
section_number: "1655.17"
section_name: "Prepayment."
chapter_name: "FEDERAL RETIREMENT THRIFT INVESTMENT BOARD"
part_number: "1655"
part_name: "LOAN PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 8432d, 8433(g), 8439(a)(3) and 8474."
regulatory_source: "68 FR 35515, June 13, 2003, unless otherwise noted."
cfr_part: "1655"
---


# 1655.17 Prepayment.

(a) A participant may repay a loan in full, without a penalty, at any time before the declaration of a deemed distribution or loan foreclosure under § 1655.15. Repayment in full means receipt by the TSP record keeper of a payment, by check or guaranteed funds made payable to the Thrift Savings Plan or via loan direct debit repayments, of all principal and interest due on the loan.

(b) If a participant returns a loan check to the TSP record keeper, it will be treated as a repayment; however, additional interest may be owed, which, if not paid, could result in a deemed distribution. The loan, even though repaid, will also be taken into account in determining the maximum amount available for future loans, in accordance with § 1655.6(b).

(c) The amount outstanding on a loan can be obtained from the TSP website, the ThriftLine, or by a written request to the TSP record keeper.

[87 FR 31694, May 24, 2022]