Our loan policy states the term of the loan may not extend beyond the participant's normal retirement age as dfined in the plan. Is this requirement specific to our loan policy or is this a requirement?

Appears not to be regulatory-DOL Reg. § 2550.408b-1(b)(1)

(b) Reasonably Equivalent Basis. --(1)
Loans will not be considered to have been made available to participants and beneficiaries on a reasonably equivalent basis unless:

(i) Such loans are available to all plan participants and beneficiaries without regard to any individual's race, color, religion, sex, age or national origin;

The answer to your question should be immediately apparent if your question is rephrased as follows:

Does the law force plans to discriminate against older workers who take out loans by limiting the maximum duration of the repayment period?