Loan Payments

[Guest hobbes]

Hi. We have an employee with an outstanding loan whose status is changing from full time to part time. She is worried that some payperiods she may not have enough in her check to make the loan payments. She would like to be able to make up what she owes once every quarter by writing a personal check. I am trying to find out if this would be allowed.

Thank you.

[Leopurrd]

it depends. What does your loan policy say? Some state that repayment can only be made via payroll deduction, others do not.

You could always re-amortize the loan to extend the repayment period, if possible (up to 5 years for non-residence loan).

Vicki