---
kind: "section"
citation: "34 C.F.R. § 30.62"
title: "34"
number: "30.62"
heading: "When does the Secretary forego interest, administrative costs, or penalties?"
url: "https://uscodex.org/cfr/34/30.62"
---

# §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](/cfr/4/part103.md).
- (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](/cfr/4/part103.md); 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)](#b-1) of this section without regard to the amount of the debt.
- (d) The Secretary may exercise waiver under [paragraph (b)(2)](#b-2) of this section if—
  - (1) The Secretary has accepted an installment plan under [4 CFR 102.11](/cfr/4/102.11.md);
  - (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](/usc/31/3717.md) 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)](#e-1) of this section if the Secretary determines that the extension is appropriate.

## 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.