You can finance the purchase of service credit through monthly cash payments of up to 120 payments.

The amount to finance the purchase of service credit or redeposit depends on how much service credit you want to purchase and the current interest rate charged for financing.

The interest rate for financing is set at a rate established annually by the Teachers’ Retirement Board. The interest rate for fiscal year 2002-2003 is 6 percent, and your estimate using this calculator uses that rate. If you finance a purchase during this fiscal year, you will be charged the 6 percent rate. That rate will be locked in for the life of your finance period and cannot be changed, although you can change the installment period. Additionally, if you are already financing a purchase or redeposit, you cannot refinance your purchase or redeposit.

Before using the finance calculator for cash payments calculator, please read this disclaimer.

If you would like to finance a service credit purchase by cash payment, use the CalSTRS form called Redeposit or Purchase of Permissive or Nonqualified Service Credit. After you send the completed form to CalSTRS and CalSTRS verifies your eligibility for the purchase, you will receive a billing statement listing the amount due and the cost to finance. If you agree to the terms of the billing, sign the billing statement and send it to CalSTRS. Please do not send money to CalSTRS until you have received a billing statement.