Federal retirement loans must now combine interest with principal when reamortized

The Federal Retirement Thrift Investment Board changed a rule for its loan program. Now, when a loan is restructured, any unpaid interest is added to the original loan amount.

This means that if you have a loan from the Thrift Savings Plan and need to reamortize it, you will start paying interest on the interest you already owe. This makes the loan more expensive over time. It shifts more of the burden onto the borrower if they struggle to make payments.