Apply for TDA Loan

Choose Amount

Please review the TDA Loans brochure for the eligibility requirements, as well as the terms and conditions governing TDA loans. If you are applying for a TDA loan in conjunction with retirement, you must file a TDA Loan Application (code LO15).

Please indicate the amount you want to borrow; you may request either your maximum TDA loan amount or specify a dollar amount. You must also designate how your TDA account should be debited to provide the funds for your loan. Generally, the minimum TDA loan amount that you may borrow is $1,000. However, you may borrow a minimum of $250 if you have a previous outstanding TDA loan(s). Your new TDA loan amount, plus your existing TDA loan balance(s), must total at least $1,000.

A $30 service charge (for administrative costs) would be included in your new TDA loan amount.

Your loan would be paid to you using the same method (Electronic Fund Transfer or check) that you receive your paycheck.

Maximum TDA Loan Amount: This amount may change if you currently have a DCP loan balance, or if you apply for loans from both your QPP and TDA accounts.

Requested TDA Loan Amount: If you specify a dollar amount, the amount must not exceed your maximum TDA loan amount available. Please do not enter a dollar sign, comma, or decimal point (e.g., enter 2000 if you want to borrow two thousand dollars). A specified loan amount must be a multiple of $10, expressed as a whole-dollar amount.

Elect Loan Source: You may elect to have your account debited in any combination of TRS’ Passport Funds, provided you have sufficient funds in each investment program you designate. (Note that your funds must also cover the $30 service charge that is added to your requested loan amount.) Your elections must be in multiples of 5% and must total 100%.

Leave of Absence: If you are on a leave of absence, you are eligible for a 12-month grace period when loan payments need not be made. TRS would indicate the due date of your first loan payment on your TDA loan check stub. During the grace period, interest on your outstanding loan balance would continue to accrue. If your leave of absence exceeds the 12-month grace period, or if you opt not to take advantage of the grace period, you must make periodic payments directly to TRS each month.

Choose Payment Period

Please review the information carefully and select a payment period for your loan. Some options may not appear if your requested loan amount does not qualify for a specific payment period, or if the payment period for your calculated loan amount would exceed 60 months. In addition, if you are an in-service member, some options may not appear if your loan payments would not equal at least 2% of your contractual salary.

Your TDA Loan payment amounts are based on information you supply. Please refer to the TDA Loans brochure for additional information about the terms and conditions of TDA Loans. In all cases, the provisions of the governing laws, rules, and regulations prevail.

Payment Period by Months: With the exception of a loan taken at annuitization, your TDA loan must be repaid within five years (60 months) of the date the loan was issued. If you are an in-service member, loans are normally repaid through payroll deductions of at least 2% of your contractual salary. If you have vested rights when you separate from service, you may maintain an outstanding TDA loan balance and avoid a taxable distribution (that would be reported to the Internal Revenue Service) by electing TDA Deferral status. Monthly direct payments to TRS would then be required.

Number of Payments: If you are a member with TDA Deferral status, your TDA loan payments are due by the 15th of each month. For all other members with a TDA loan, generally, the number of payments for a loan payment period is two per month through automatic payroll deductions. Therefore, if your loan calculations indicate an option of 96 payments, you would make TDA loan payments through automatic payroll deductions twice a month, for a total of 48 months.

However, TRS would receive payment for only one TDA loan through automatic payroll deductions if you meet the following conditions:

  • You are an active TRS member who is not on a leave of absence;
  • You are employed by the City University of New York; and
  • Your paychecks are issued to you through the New York State payroll.

For any additional TDA loan(s), you must submit loan payments directly to TRS based on your payment schedule.

Payment Amount Per Period: Your TDA loan payment amounts include annual interest and a nonrefundable service charge of $30 (for administrative costs). The interest rate is equal to the annual rate of return that you would receive on TDA investments in the Fixed Return Fund. Therefore, for members serving in (or retired/resigned from) a UFT-covered title, the interest rate on TDA loans would be 7%; for other members, the interest rate would be 8.25%.

Payments for TDA loans issued before October 5, 2024 also included insurance premium charges of 0.3%. There is no loan insurance on TDA loans issued on or after October 5, 2024.

Retirees and Members with TDA Deferral Status: If you are a retiree, you have a choice of how to repay your loan: automatic deductions from your monthly retirement allowance (including advance payments, if applicable) or monthly direct payments to TRS. Check the box if you would like to make monthly direct payments.

To change your payment method for any outstanding TDA loan, you may file a Request to Change TDA Loan Payment Method (code LO105).

If you are a member with TDA Deferral status, you must designate how your loan payments should be credited to your TDA account. You may elect to have your loan payments invested in any combination of the Passport Funds. Your elections must be in 5% multiples and must total 100%. Please note that the elections you make will also apply to payments for any other TDA loans you may have.

Confirmation

Please review the information carefully and then read and accept the Terms & Conditions. An email confirming your loan will be sent to the email address TRS has on file.

Loan distribution method: All loans will be paid to members by electronic deposit to a bank account; TRS will not issue checks for loans. If you want to take a loan, your bank account information must be on file with TRS. For in-service members paid on the Department of Education payroll, and retirees paid electronically, the bank information is already on file. Other members can provide their bank account information by submitting an online EFT Authorization Form available from the E-Forms section. Please note that if you do not provide TRS with your bank account information within five business days of submitting a loan application, your application will be rejected.

Bank Account Information: Information will be displayed if you have an account that is currently receiving your paychecks or retirement allowance payments. You may not have this new disbursement transmitted to a different account. (To change the account where your paychecks are deposited, contact your employer. To change the account where your retirement allowance payments are deposited, please file the EFT Authorization Form available from the E-Forms section.)