The Contractors Plan Loan Program® Plan Participant FAQ
- Q: How do I request a loan check from the Contractors Plan Loan Program?
- Q: How much does it cost to borrow from The Contractors Plan Loan Program?
- Q: What interest rate will be charged on The Contractors Plan Loan Program loans?
- Q: How will I be notified of my account status?
- Q: How do I increase my Line of Credit?
- Q: How do I decrease my Line of Credit?
- Q: What is my minimum monthly payment and how is it calculated?
- Q: How are my repayments allocated to retirement plan account?
- Q: What is my loan payment due date?
- Q: Can I change my due date?
- Q: Do I have a grace period?
- Q: Can I make a payment over the phone or online?
- Q: Can I add an additional Accountholder?
- Q: How do I change my address?
- Q: Can I close my loan account? If so, will I be assessed any penalties?
- Q: After I terminate my loan account, what happens to the remaining loan line that has not been used?
- Q: What happens to my loan account if I lose my job or change my employer?
- Q: How can I obtain disclosure information regarding my loan account?
- Q: What if I can't view and print the forms available on this site?
Q: How much does it cost to borrow from the plan?
A: In addition to interest on your loan, there are administrative loan fees. You should carefully consider the cost of these fees before borrowing from the plan. For complete information regarding loan fees, please click here to access the Loan Fees and Other Disclosure information.
Q: What interest rate will be charged on The Contractors Plan Loan Program loans?
A: The Annual Percentage Rate (
APR) for each of your loans is set at the time the money is borrowed
from the plan, which may change monthly. The APR in effect at the time your Line of Credit is established
will be provided to you at the time you apply. As described in the Loan Fees and Other Disclosure
document, the APR is based on the prime rate plus a service fee. The prime rate means the highest prime
rate published in the
Money Rates section of the Wall Street Journal on the last
business day of each calendar month. This amount is used for the following month.
When the APR changes, it will apply only to new loans taken when the new rate is in effect.
Any changes will be effective on the first day of the next billing cycle, but only as new loans are taken.
Q: How will I be notified of my loan account status?
A: You will receive a monthly statement showing your loan transactions during the previous month. The statement also includes the minimum amount that is currently payable as well as any interest and fees charged to your account. In addition, you may check your account status and statements at any time by clicking here.
Q: How do I decrease my Line of Credit?
A. Call Customer Service at (888)272-7526 (Monday through Friday, 7:00am – 7:00pm CT). In order to process your request, your outstanding balance must be less than the reduced loan limit you are requesting. You will receive a confirmation that your loan line has been decreased once the request has been processed.
Q: What is my minimum monthly payment and how is it calculated?
A. Your minimum monthly payment due will be determined by how much you borrow and when. Each monthly billing cycle, we calculate a separate payment amount for each separate loan created during the month. The separate payment amount remains the same for the duration of that loan, and is based on the amortization of the loan over the repayment period (the
Term). The Term, which is the same for every loan you take, begins on the last day
of the monthly billing cycle during which the separate loan was created, and may not exceed 60 months.
To determine the total minimum payment due each month, we add together each separate payment amount for each of your outstanding loans, plus any amount past due, any amount in excess of your available loan line, and any other charges or fees incurred, and round it up to the nearest whole dollar. If this amount is less than $10, your minimum payment due will be the entire "New Balance" that appears on your monthly billing statement.
Q: How are my repayments allocated to my retirement plan account?
A. The prime rate portion of your interest payments is transferred back to your other plan investments monthly. The principal is returned to your loan line money market or stable value account. All repayments, less fees, are paid back to you through your retirement plan account.
Q: Do I have a grace period?
A. There is no grace period for your retirment plan loan account. Finance charges are assessed from the date a transaction is posted to your account for as long as a balance remains outstanding.
Q: Can I close my loan account? If so, will I be assessed any penalties?
A. You may close your account at any time through your plan website. If you close your account, no additional loans may be taken from it and you must continue making payments until your loan balance is completely repaid. If you fail to repay the entire outstanding balance, the IRS requires that the outstanding balance be reported as a distribution that will be subject to income taxation and possibly premature distribution tax penalties. The retirement plan does NOT charge any penalties for closing your loan account.
Q: After I terminate my loan account, what happens to the remaining loan line that has not been used?
A: Once you terminate your loan account, unused loan line funds will be transferred back to your other plan investments.
Q: How can I obtain disclosure information regarding my loan account?
A. You can view and print the Participant Loan Agreement by clicking here. You may view and print the Loan Fee and Other Disclosures agreement by clicking here.
Q: What if I can't view and print the forms available on this site?
A: The forms on this site were created with Adobe Acrobat and saved as PDF files to preserve their format. If you haven't already done so, you'll need to download and install the free Adobe Acrobat Reader from the Adobe.com website. Click here and follow the instructions on how to install.