Loan repayments

[rlb64]

Plan is covering school bus drivers. They are paid for 38 weeks and not paid during the summer. Plan sponsor would like to limit loan repayments through payroll deduction. Does anyone have a suggest as to how to setup loan repayments for these employees?

Thanks

[Kirk Maldonado]

Carefully?

[david rigby]

Not at all?

[Harwood]

Summer months could be considered an authorized leave-of-absence and loan payments suspended. Various options available when driver returns to work in the fall.

[austin3515]

Researching something else, I stumbled upon the requirement that if loan payments are suspended during an LOA, you still need to accrue interest during that time frame, which is a recordkeeping pain the in backside.