[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR30.62]

[Page 57-58]
 
                           TITLE 34--EDUCATION
 
PART 30--DEBT COLLECTION--Table of Contents
 
    Subpart E--What Costs and Penalties Does the Secretary Impose on 
                           Delinquent Debtors?
 
Sec. 30.62  When does the Secretary forego interest, administrative costs, 
or penalties?

    (a) For a debt of any amount based on a loan, the Secretary may 
refrain from collecting interest or charging administrative costs or 
penalties to the extent that compromise of these amounts is appropriate 
under the standards for compromise of a debt contained in 4 CFR part 
103.
    (b) For a debt not based on a loan the Secretary may waive, or 
partially waive, the charging of interest, or the collection of 
administrative costs or penalties, if--
    (1) Compromise of these amounts is appropriate under the standards 
for compromise of a debt contained in 4 CFR part 103; or
    (2) The Secretary determines that the charging of interest or the 
collection of administrative costs or penalties is--
    (i) Against equity and good conscience; or
    (ii) Not in the best interests of the United States.
    (c) The Secretary may exercise waiver under paragraph (b)(1) of this 
section without regard to the amount of the debt.

[[Page 58]]

    (d) The Secretary may exercise waiver under paragraph (b)(2) of this 
section if--
    (1) The Secretary has accepted an installment plan under 4 CFR 
102.11;
    (2) There is no indication of fault or lack of good faith on the 
part of the debtor; and
    (3) The amount of interest, administrative costs, and penalties is 
such a large portion of the installments that the debt may never be 
repaid if that amount is collected.
    (e)(1) The Secretary does not charge interest on any portion of a 
debt, other than a loan, owed by a person subject to 31 U.S.C. 3717 if 
the debt is paid within 30 days after the date of the first demand for 
payment.
    (2) The Secretary may extend the period under paragraph (e)(1) of 
this section if the Secretary determines that the extension is 
appropriate.

(Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, 31 U.S.C. 3711(e))