Sept. 30, 2002 – Thanks to action by the Senate some months ago, the limits on Government Employees Retirement System loan have been increased.
The cap on personal loans to active members — that is, those still working — has gone to $50,000 from $20,000.
The maximum personal loan to retirees increased to $10,000 from $8,000. GERS Administrator Laurence E. Bryan said the Senate authorized an increase to $50,000, but insurance companies cap the credit life insurance required for all loans at $10,000 for retirees. "These are unsecured loans," he explained, adding that after a few years of collecting retirement benefits, retirees have used up all the money they put into the system.
Credit life insurance repays the outstanding balance on loans in event the borrower dies or becomes disabled.
The maximum amount available for mortgage loans went to $250,000 from $105,000. The cap on loans to purchase land is now $50,000; Bryan said it was previously around $30,000.
The personal loan application fee increased to $30 from $25, but the credit check fee remains unchanged at $20. The mortgage origination fee is still 1.5 percent of the loan amount.
For loan information, call GERS at 776-7703 on St. Thomas or 773-5480 on St. Croix.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
