During this time of economic uncertainty, you may be considering how you can lower your NYSLRS loan payment. We understand your concerns and want to provide you with information that can help.
How to Lower Your Loan Payment
You may be able to lower your payment amount as long as you still pay the minimum amount required to repay your loan. There are two ways to request a lower loan payment:
- Manage Your Loan Payment with Retirement Online
Once you sign in to your account, go to the My Account Summary section and click “Manage My Loans.” You’ll be able to check your payoff balance and minimum payment (payroll deduction) amount as well as change your payment amount.
- Send a Loan Payment Change Form
Fill out our Loan Payment Change form (RS5521) and send it to:
110 State Street
Albany, NY 12244
NYSLRS Loan Payments are Set by Law
Loan payments must be paid:
- At least quarterly (NYSLRS will calculate your minimum payment when you take a loan); and
- In a sufficient enough amount to repay the loan within five years from the date it was issued.
These are requirements established by both NYS Retirement & Social Security Law (RSSL) and the Internal Revenue Service (IRS). If you are on payroll, your loan will be repaid through payroll deductions.
Can Loan Payments be Deferred?
In certain instances, you may be eligible for a deferment of your loan payment.
If you are on an authorized leave of absence with your employer, the IRS allows for the suspension of loan payments for up to one year from the date your leave began or until you return to the payroll (whichever occurs first). To receive this deferment, your employer must send us a fax (518-486-9877) on their letterhead that indicates the date your leave began and when they expect it will end.
It’s important to note that if you defer your loan payments during an authorized leave of absence, your payments will need to be recalculated and increased upon your return. This will ensure your loan will be paid off within the five-year period.
Active military personnel may also be able to defer their loan payments. The five-year repayment period for these members can be extended, however your loan balance will continue to accrue interest and you must resume payments once you end active duty. Visit our Loans page for more information.
What Happens If You Go Off Payroll?
If you go off payroll, to avoid your loan going into default, you must make minimum payments at least quarterly and repay the loan within five years. To avoid a default, contact us as soon as you leave public employment, so we can tell you the exact amount you need to pay. If you are in danger of defaulting on your loan, we will notify you. Retirement Online is the easiest way to make loan payments if you are off payroll. Read the Make Lump Sum Payments information on our Loans page for details.