Loan defaulted due to a company administration error

[Guest coleman24]

Through an internal audit we(company) have found a participant that took a loan out last year, but has never had payroll deductions withheld. We called our TPA and they said we must default the loan. Do we have any alternatives due to the fact it was the company's error and not the employee? I thought we could just start the payments up and extend the life of the loan.