While 401(k) loans are typically paid through payroll deductions in accordance with your agreed upon amortization schedule, you can also submit payments via a check or online through your bank account.
You may choose to make additional payments to pay off your loan sooner or if you are behind on your loan payments.
How to make a loan payment in your dashboard
If you would like to make a loan payment, please visit the Loans page of your Guideline account. Then, click the "Make a payment" button. Next, follow the prompts to select your payment options. You'll have the ability to pay via a bank account or mail a check. You can then follow the instructions or steps provided on how to complete the payment.
Loan payment timelines
The timeline for when we'll receive your additional loan payment depends on which payment option you choose.
Bank account payments: Allow approximately 5 business days for the transaction to complete and reflect in your loan balance.
Check by mail: It takes a minimum of 15 business days for us to receive and process the payment before you will see it reflected in your loan balance.
Please note that if you are making a payment to avoid having a delinquent loan being deemed distributed, the payment must be received by (not mailed by) the date indicated in the email you received. If there are fewer than 20 business days before the date the loan will be deemed distributed, it is recommended that you make the payment by bank account instead of sending in a check.
You can monitor your pending payments and loan activity from your transaction history available under the Activity tab in your dashboard.
Partial payments
If you are making a partial repayment on a loan in good standing, your future payments will not change. You will simply pay off your loan sooner than is shown on your amortization schedule.
If you are making a partial repayment to make up for missed loan payments, any payments made will be applied to the oldest outstanding payments until the loan is brought current.
Paying off your loan in full
If you wish to repay your loan in full and will be receiving a paycheck in the next 2-3 days, please wait until those funds have settled for the most up-to-date loan balance amount and to avoid an overpayment.
If you are planning to pay off your current loan in order to take out a new one, the maximum new loan amount you will be able to request is $50,000 minus the highest outstanding balance of your prior loan(s) in the last 12 months, or 50% of your vested account balance, whichever is less. You can find more details about the loan calculation here.
It typically takes around 1 week from your final payment for your loan to be fully closed. You will not be able to request a new loan until this timeline has passed.
Overpayment
An overpayment occurs when the amount paid is more than the remaining amount due on the loan. This typically occurs when a payment is made outside of payroll, too close to when a scheduled payroll deduction will also occur.
If an overpayment takes place, please contact our participant support team, so we can refund the amount. The refund process for an overpayment can take up to 30 days from when you notify us. Please note, during this time, you will be unable to request a new loan, as the existing loan cannot be closed until the overpayment is processed.