[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: 34CFR30.62]



[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.  30.62  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.

    (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))



[[Page 58]]