---
kind: "section"
citation: "34 C.F.R. § 30.61"
title: "34"
number: "30.61"
heading: "What penalties does the Secretary impose on delinquent debtors?"
url: "https://uscodex.org/cfr/34/30.61"
---

# §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)](#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)](#a) and [(b)](#b) 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.