University of Southern California

USC Benefits

Retirement Plan Loan Program

    As a reminder, effective January 1, 2013, the following changes were made to the USC retirement plan loan program:

  1. Eligible participants are permitted to have one outstanding loan at a time but there is no limit on the number of loans a participant may initiate. A participant who has account balances in both the USC Retirement Savings Program and the USC Hospital 401(k) Plan may take a loan from each, providing otherwise eligible.
  2. Participants who had two outstanding loans on January 1, 2013, are grandfathered under the previous rules for the duration of the payment period for the two loans. However, a participant with two grandfathered loans is not eligible to apply for another loan until all loans are paid off.
  3. There is a seven day waiting period between the crediting of the final payment of one loan and the approval of the next loan.
  4. A loan that has been deemed or defaulted after January 1, 2013 is considered to be an outstanding loan and the participant cannot take another loan.

Please contact for information about loans from the USC Retirement Savings Program and for information about loans from the USC Hospital 401(k) Plan.

More facts you should know before borrowing