Retirement Plan Loan Program
- 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.
- 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.
- There is a seven day waiting period between the crediting of the final payment of one loan and the approval of the next loan.
- 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.
As a reminder, effective January 1, 2013, the following changes were made to the USC retirement plan loan program: