Question: is the following loan in default or still within a correction period?
Participant took a loan in 4th Quarter 2020 and repayments were to commence via payroll withholding, 1st payment late December 2020, 5 Year repayment.
Assuming this Participant is a Qualified Individual under CARES, loan repayments could be delayed until January 2021 at which point the loan balance plus interest could be re-amortized for a new 5 years. To date, the Participant has not made any loan repayments. Under this scenario is the cure period June 30 2021, for at least all missed loan payments January 2021 through March 31, 2021?
Thank you.