403(b) / 457(b)Transactions/Loans: Will I be able to take another loan out if I have defaulted on a loan in the past?

You may or may not be able to take out another loan after a previous default.

If the additional loan is allowed in the plan document you will be able to do so only if the repayment is made on the loan through payroll deductions. Some employers do not support loan payments through payroll deductions.

In addition, your investment provider may not allow a subsequent loan if there has been a previous default.

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