---
kind: "section"
citation: "34 C.F.R. § 30.60"
title: "34"
number: "30.60"
heading: "What costs does the Secretary impose on delinquent debtors?"
url: "https://uscodex.org/cfr/34/30.60"
---

# §30.60. What costs does the Secretary impose on delinquent debtors?

- (a) The Secretary may charge a debtor for the costs associated with the collection of a particular debt. These costs include, but are not limited to—
  - (1) Salaries of employees performing Federal loan servicing and debt collection activities;
  - (2) Telephone and mailing costs;
  - (3) Costs for reporting debts to credit bureaus;
  - (4) Costs for purchase of credit bureau reports;
  - (5) Costs associated with computer operations and other costs associated with the maintenance of records;
  - (6) Bank charges;
  - (7) Collection agency costs;
  - (8) Court costs and attorney fees; and
  - (9) **Costs charged by other Governmental agencies.**
- (b) Notwithstanding any provision of State law, if the Secretary uses a collection agency to collect a debt on a contingent fee basis, the Secretary charges the debtor, and collects through the agency, an amount sufficient to recover—
  - (1) The entire amount of the debt; and
  - (2) **The amount that the Secretary is required to pay the agency for its collection services.**
- (c)
  - (1) The amount recovered under [paragraph (b)](#b) of this section is the entire amount of the debt, multiplied by the following fraction:
  - (2) In [paragraph (c)(1)](#c-1) of this section, cr equals the commission rate the Department pays to the collection agency.
- (d) If the Secretary uses more than one collection agency to collect similar debts, the commission rate (cr) described in [paragraph (c)(2)](#c-2) of this section is calculated as a weighted average of the commission rates charged by all collection agencies collecting similar debts, computed for each fiscal year based on the formula
  - (1) Xi equals the dollar amount of similar debts placed by the Department with an individual collection agency as of the end of the preceding fiscal year;
  - (2) Yi equals the commission rate the Department pays to that collection agency for the collection of the similar debts;
  - (3) Z equals the dollar amount of similar debts placed by the Department with all collection agencies as of the end of the preceding fiscal year; and
  - (4) N equals the number of collection agencies with which the Secretary has placed similar debts as of the end of the preceding fiscal year.
- (e) If a debtor has agreed under a repayment or settlement agreement with the Secretary to pay costs associated with the collection of a debt at a specified amount or rate, the Secretary collects those costs in accordance with the agreement.
- (f) The Secretary does not impose collection costs against State or local governments under [paragraphs (a) through (d)](#a..d) of this section.

## Notes

### Source

Source: 53 FR 33425, Aug. 30, 1988, unless otherwise noted.

### Authority

Authority: 20 U.S.C. 1221e-3(a)(1), and 1226a-1, 31 U.S.C. 3711(e), 31 U.S.C. 3716(b) and 3720A, unless otherwise noted.

### Source

Source: 51 FR 24099, July 1, 1986, unless otherwise noted.