§34.30. Application of payments and accrual of interest.

34 C.F.R. § 34.30

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.

Notes, amendments, and revision history

Authority: 31 U.S.C. 3720D, unless otherwise noted.

Source: 68 FR 8142, Feb. 19, 2003, unless otherwise noted.