[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: 34CFR34.30] [Page 95] TITLE 34--EDUCATION PART 34_ADMINISTRATIVE WAGE GARNISHMENT--Table of Contents Sec. 34.30 Application of payments and accrual of interest. We apply payments received through a garnishment in the following order-- (a) To costs incurred to collect the debt; (b) To interest accrued on the debt at the rate established by-- (1) The terms of the obligation under which it arises; or (2) Applicable law; and (c) To outstanding principal of the debt. (Authority: 31 U.S.C. 3720D)