Guest PJW Posted March 31, 2003 Posted March 31, 2003 The Final Loan Regs and the preamble seem to suggest that a plan has the option of suspending repayment during leave for military service, but is required to charge a rate of interest no greater than 6% during that leave. Is this 6% requirement imposed even if the plan does not permit a suspension of payments during military service?
MGB Posted March 31, 2003 Posted March 31, 2003 According to the unofficial guidance on the DOL website's Q&A's, the only way you can charge more than 6% is to get a court order. I strongly disagree with that interpretation of the Soldiers and Sailors Relief Act of 1940. I think their logic is backwards from the language of the Act and puts the burden of proof of financial harm on the wrong party.
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