Guest sritts Posted May 12, 2010 Posted May 12, 2010 What is the correction for a plan loan when loan payments received exceeds scheduled amortized loan payments. Example scheduled loan payment $27 per paid period. Amount received $282 per paid period. Loan is paid up now through 2012. The loan policy does not allow for partial payments or loan refinancing. Do you refund amount the overpayments, if so do you apply earnings? Stop payroll deduct until 2012? Reamortize loan? Thank you!
rcline46 Posted May 12, 2010 Posted May 12, 2010 Looks more like a pre-payment than a partial payment - recheck loan document. This should be permitted, and it should have been marked as additional principal. Loan not paid through 2012, and any missed payments currently could cause default!
masteff Posted May 12, 2010 Posted May 12, 2010 I'd agree w/ rcline. I'd now change the payroll deduction to the correct payment amount and continue payments until the balance reaches zero. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Guest sritts Posted May 12, 2010 Posted May 12, 2010 I'd agree w/ rcline. I'd now change the payroll deduction to the correct payment amount and continue payments until the balance reaches zero. Thank you
Guest sritts Posted May 12, 2010 Posted May 12, 2010 Looks more like a pre-payment than a partial payment - recheck loan document. This should be permitted, and it should have been marked as additional principal. Loan not paid through 2012, and any missed payments currently could cause default! thanks
Guest sritts Posted May 12, 2010 Posted May 12, 2010 Looks more like a pre-payment than a partial payment - recheck loan document. This should be permitted, and it should have been marked as additional principal. Loan not paid through 2012, and any missed payments currently could cause default! the loan policy states partial pre-payments are not allowed
401king Posted May 12, 2010 Posted May 12, 2010 the loan policy states partial pre-payments are not allowed If that's the case then you will want to write a check for the overage, including gains/losses...then make sure it doesn't continue to happen. R. Alexander
Guest sritts Posted May 13, 2010 Posted May 13, 2010 the loan policy states partial pre-payments are not allowed If that's the case then you will want to write a check for the overage, including gains/losses...then make sure it doesn't continue to happen. thanks, that was my initial thought but was hoping there were other solutions.
rcline46 Posted May 13, 2010 Posted May 13, 2010 Why not amend the loan policy to permit advance payments of principal?
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