Disability, Loan Repayments, Default

[Guest Jelly Phish]

Are there any special rules for employees who have loans outstanding and then subsequently go on disability (short or long term)? If the plan does not have a leave of absence loan repayment suspension provision, is there anything special about disabled participants? Or can the plan default them? If the plan can default them, is it according to the grace period of the plan (which is 90 days after the default event) or the statutory grace period (last day of the following quarter)? Thanks.

[Guest Bud]

I don't recall if a forbearance is required when a participant is on disability. In any event, the plan document's grace period provisions control the default timing.

[JanetM]

Would this not be covered by new loan rules. If STD or LTD is qualified leave of absence you can suspend payments for one year.