How Long Does it Take to Get My NYS Teacher Retirement Loan?

Teachers can borrow against their retirement fund.
Teachers can borrow against their retirement fund. (Image: Comstock/Comstock/Getty Images)

The New York State Teachers' Retirement System (NYSTRS) administers the pension fund and payments for public school teachers and administrators in New York State. One of the programs the NYSTRS offers its members is the availability of loans from the pension fund. Such loans are subject to eligibility and restrictions. Loan applications that are eligible are usually processed in five business days.

Loan Eligibility

All public school teachers and administrators in New York State belong to the NYSTRS. Teachers can take a loan from the pension fund if they have at least one full year of service credit and have made a minimum amount of retirement payment contributions. For Tier 1 and 2 members, this amount is $400 in their annuity fund. For Tier 3, 4 and 5 members, the minimum contribution amount is $1,334.

Amount and Application

Members who meet the eligibility requirements, can borrow up to 75 percent of their retirement contribution payments. This includes payments the teacher has contributed plus any earned interest. Balances from all outstanding loans can not exceed the 75 percent limit. There is a minimum loan amount of $300 for Tier 1 and 2 members and $1,000 for all others. Applications can be completed and filed online on the NYSTRS website or with an official paper application, which must be mailed back to the NYSTRS. Properly completed applications from eligible members are usually processed in five business days, after which a check is mailed to the member.


Loans are usually required to be repaid within five years, but Tier 1 and 2 members can apply for longer repayment terms. The annual interest rate is fixed by law at 5 percent for Tier 1 and 2 and at 7 percent for Tiers 3, 4 and 5. Minimum monthly payments are either 2 percent of the member's annual salary divided by 10 or the amount needed to repay the loan within five years, whichever of the two amounts is greater.

Other Considerations

The NYSTRS will only count contributions made directly from the member regarding loan eligibility and not any contributions made by employers. Most members are allowed to take no more than one loan per year. Loan requests are not subject to a consumer credit report check. However, members who are delinquent on other NYSTRS loans will not be eligible for new loans. Loans are subject to small loan fees and credit life insurance. All loans are repayable, regardless of the member's employment status.

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