5 CFR 1655.16 - Reamortization.
(a) A participant may request reamortization of a loan at any time to change the amount of the payments, unless the loan is in a default status.
(b) Upon reamortization, the outstanding principal balance remains the same. Any accrued interest is paid off first before payments are applied to principal and current interest.
(c) The interest rate on a reamortized loan will be the same as the interest rate on the original loan.
(e) When a participant's pay cycle changes for any reason, he or she should request a reamortization to adjust the scheduled payment to an equivalent amount in the new pay cycle. If the new pay cycle results in fewer payments per year and the participant does not reamortize the loan, the loan may be declared a taxable distribution pursuant to § 1655.15(a)(3).