---
kind: "section"
citation: "34 C.F.R. § 34.30"
title: "34"
number: "34.30"
heading: "Application of payments and accrual of interest."
url: "https://uscodex.org/cfr/34/34.30"
---

# §34.30. Application of payments and accrual of interest.


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

### Authority

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

### Source

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