Loan repayments and change of status

[30Rock]

If a full time employee under a payroll deduction loan changes status to part time or temporary, it is likely he will default if his pay is less then the required quarterly repayments. Is the only remedy to default?

And what about an employee who terminates and is then switched to ACH form of repayment - this employee is later rehired. Do the repayments have to continue as ACH or can he go back to payroll deduct?

I am interested in any comments or experience with this.

Thanks!

[QDROphile]

Can you do what you want or are you stuck with an inflexible administartive system/provider?

[Lou S.]

What does the participant loan program say?

[30Rock]

The loan policy does not address other than to allow terminated employees to set h to ACH.

[Lou S.]

It sounds like an administrative policy, but if terminated employees are allowed to set up an ACH to make payments I don't see why active employees would be treated worse by forcing a default.