[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR30.61]



[Page 57]

 

                           TITLE 34--EDUCATION

 

PART 30_DEBT COLLECTION--Table of Contents

 

    Subpart E_What Costs and Penalties Does the Secretary Impose on 

                           Delinquent Debtors?

 

Sec.  30.61  What penalties does the Secretary impose on delinquent 

debtors?



    (a) If a debtor does not make a payment on a debt, or portion of a 

debt, within 90 days after the date specified in the first demand for 

payment sent to the debtor, the Secretary imposes a penalty on the 

debtor.

    (b)(1) The amount of the penalty imposed under paragraph (a) of this 

section is 6 percent per year of the amount of the delinquent debt.

    (2) The penalty imposed under this section runs from the date 

specified in the first demand for payment to the date the debt 

(including the penalty) is paid.

    (c) If a debtor has agreed under a repayment or settlement agreement 

with the Secretary to pay a penalty for failure to pay a debt when due, 

or has such an agreement under a grant or contract under which the debt 

arose, the Secretary collects the penalty in accordance with the 

agreement, grant, or contract.

    (d) The Secretary does not impose a penalty against State or local 

governments under paragraphs (a) and (b) of this section.



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