enzamatic

Indeed!

If its not clear about the savings, i can only pay it off 376 a month. To save up the repayment amount, including the amount that was used for the month between closings, i must put it somewhere. I just doubt theres anything in financial aid calculations that recognizes that money as a 401k loan repayment in waiting instead of a free to spend asset. I surely wouldnt advise anyone to borrow from 401k for kids college, they have the rest of their life to pay off college loans but we have only x many years to save for retirement or theyre stuck with supporting us too.

Hi all..yess you have the gist of it. 50k borrowed from 401k, thought i could pay it back after closing but our hr changed 401k provider to adp and this changed rules. I have to take issue with calling that hiding money from financial aid as i got it from there with intent to return it immediately, it didnt stop being 401k funds and if i dont pay it back you can see that in how it would be treated for tax purposes. I do have the original loan document and was surprised to see in double checking that it states in the document " Prepayment of the unpaid principal and accrued interest may be made by the Borrower at any time without penalty." When I had asked in preparation before taking out the loan, they said I would send a cashiers check, amd it was limited per a doc on their website, which i cant access any longer since im not a participant, to once a year. However, I dont think this particular line implies that must continue, that line is about full principal only I imagine. Sounds like youre on the same conclusion I was, just advance savings. If no surprises come up should be mext October, but wanted to get an opinion if there more efficient options. Thanks so much for your advice!

Hello all - our company has changed HR benefits providers. Previously we had Slavic401k, and we moved to ADP (for that and all other benefits). A year before the switch I took out a 401k loan for the purchase of my home, which comes with a 15 year repayment duration. When I took out the loan via Slavic, there was an ability to make one principal reduction payment a year on top of your normal payroll withdrawals. ADP is stating that there is no ability to make a principle reduction outside of payroll, you can only do a complete payoff. I borrowed 50k to get us over the gap between closing our two houses, and paid off some credit card debt with it as well. So I'm about 10k shy of having hte full amount to pay back, while I have 40k sitting in savings. I had planned on being able to pay back the bulk of that, leaving just a few years of loan left. Now that isn't an option. This is complicated by the fact that I have kids going to college in just a year or two, and since that money is really 401k funds, I really don't want it being considered money I could be putting towards college in the student aid apps (considering if I did apply the funds it would be at a huge tx penalty!). So - now I'm in a race against student loan apps, in a situation I did not foresee. Is it legal for your employer to change companies in such a way that your loan repayment terms have changed? Or should all preexisting loans have to have the same terms (i.e. can I force ADP to let me make a payment?). Thanks very much for any advice! I can find a lot on what happens if you lose your job, or change employers, or fail to pay it back, etc - but not about when your company changes the loan company and that changes your terms mid-loan.