CARES ACT - Loan Repayment Terms

[roundlou]

I am confused two sites I use have different answers to the same question.  It is in regard to if I can extend a participants loan past 5 years because of the CARES Act.   Here are the excerpts from their websites:

 

Website 1)  However, a participant with an outstanding plan loan who is placed on an unpaid leave of absence may forego making loan payments during the leave of absence without triggering taxation of the loan, provided the following requirements are met:

1. The unpaid leave of absence does not exceed one year.
2. The loan must still be repaid by the end of the original term of the loan. Thus, the participant may make up the missed loan repayments upon returning to work, resume the original repayments with a lump sum payment of the missed repayments at the end of the term, or increase the amount of each repayment for the remainder of the repayment period upon returning to work.

 

Website 2)  Any participant loan payments due from Qualifying Individuals between March 27, 2020 and December 31, 2020 can be delayed for up to one year. If this one-year delay applies, the normal five-year maximum repayment term is extended to six years

 

See my confusion, one says must be repaid by the original term of the loan and the other says I can change a 5 year loan into a 6 year loan.

 

Can anyone clarify for me?

 

Thanks.

[C. B. Zeller]

Website 1 is referring to the normal suspension of loan payments during an unpaid leave of absence of up to 1 year. This existed prior to the CARES Act.

Website 2 is referring to the provisions of CARES Act sec. 2202(b) which allow a Qualifying Individual (as defined in the CARES Act) to suspend loan payments with a due date occurring in 2020 for 1 year. This can be used to extend the overall length of the loan beyond the 5 year max thanks to a specific provision in the CARES Act.

[Mike Preston]

They are public websites, right?  If so, how about a link to the one that is wrong with respect to CARES?