403(b) Loan Program Summary


Summary of Provisions

Loan NameGeneral Purpose and Primary Residence
Processing time (from completion of loan request)Loan check usually issued in 3-5 business days
Minimum required balance in 403(b) Plan$1,000
Maximum loan amount$50,000
Minimum repayment term12 months
Maximum repayment term60 months for General Purpose; 180 months for Primary Residence
Maximum available loan amount*

Based on combined balance in
403(b), DC and 457(b) plans*

Interest rate for the term of the loan (repaid to participant)Prime rate (as of the first business day of the month that the loan is requested) + 1%**
Initiation fee$35
Servicing fee$15 per year or $3.75 per quarter
Promissory noteQualified endorsement
Available source for loan UC Core Funds, Fidelity or Calvert mutual funds
Loan repaymentsDirected to the participant's current investment election
Repayment after separationAvailable for all separating employees through Electronic Funds Transfer (EFT)
Quarterly loan statementsProvided as part of the UC Retirement Savings Program quarterly statement

*Maximum available loan is 50% of combined balance in 403(b) Plan, DC Plan and 457(b) Plan, (including UC Core Funds and Fidelity and Calvert mutual funds), up to $50,000 or 100% of 403(b) Plan balance (whichever is less).

**The Prime Rate on August 1, 2009, was 3.25%. This means that loans issued during this month would carry an interest rate of 4.25%. For example, a $3,000 loan for 60 months at 4.25% has a monthly payment of $55.59.

Campus Human Resources, Benefits Services
Phone: (310) 794-0830 | Fax: (310) 794-0835