---
kind: "section"
citation: "22 C.F.R. § 309.5"
title: "22"
number: "309.5"
heading: "Interest, penalties, and administrative costs."
url: "https://uscodex.org/cfr/22/309.5"
---

# §309.5. Interest, penalties, and administrative costs.

- (a) Except as otherwise provided by statute, contract or excluded in accordance with FCCS, Peace Corps will assess:
  - (1) Interest on unpaid debts in accordance with [31 CFR 901.9](/cfr/31/901.9.md).
  - (2) Penalty charges at a rate of 6 percent a year or such other rate as authorized by law on any portion of a claim that is delinquent for more than 90 days.
  - (3) **Administrative charges to cover the costs of processing and handling delinquent debts.**
  - (4) Late payment charges that shall be computed from the date of mailing or hand delivery of the notice of the claim and interest requirements.
- (b) When a debt is paid in partial or installment payments, amounts received shall be applied first to outstanding penalty and administrative cost charges, second to accrued interest, and then to outstanding principal.
- (c) **Waiver.** Peace Corps will consider waiver of interest, penalties and/or administrative costs in accordance with the FCCS, [31 CFR 901.9(g)](/cfr/31/901.9.md?p=g).

## Notes

### Authority

Authority: 31 U.S.C. 3701-3719; 5 U.S.C. 5514; 22 U.S.C. 2503(b); 31 U.S.C. 3720A; 31 CFR part 285; 5 CFR 550, subpart K.

### Source

Source: 73 FR 18155, Apr. 3, 2008, unless otherwise noted.