Can I borrow against my contributions?
Members may borrow only from the funds they have contributed to NYSTRS and the interest on those contributions, not from the funds their employers contributed. Before deciding whether to borrow from these funds, watch our video “Loan Truths…and Consequences” and review our Loan Taxability tutorial.
Members who joined the System on or after July 1, 2022 may borrow up to 50% of their total contribution balance or $50,000, whichever is less. Members who joined the System prior to July 1, 2022 may borrow up to 75% of their total contribution balance.
Tier 1 and 2 members generally do not make contributions to the System and therefore most are not eligible to take loans from the System. Only Tier 1 and 2 members who have an Annuity Savings Fund (ASF) containing a minimum of $400 are eligible for loans.
Tier 3-6 members must have an active NYSTRS membership with at least one year of service credit. Members who joined prior to July 1, 2022 must have at least $1,334 in required contributions to be eligible to apply for a loan; members who joined on or after July 1, 2022 must have a minimum of $2,000. New loans include 5.95% interest, a $30 service charge and an annual life insurance premium of 0.10%.
If you have a MyNYSTRS account, you can obtain a loan estimate and apply for a loan online. See the Active Members’ Handbook for details on loans or call us at (800) 348-7298, Ext. 6080.