Code of Federal Regulations Title 34. Education § 34.30.62 When does the Secretary forego interest, administrative costs, or penalties?

(1) Compromise of these amounts is appropriate under the standards for compromise of a debt contained in 4 CFR part 103;  or

(2) The Secretary determines that the charging of interest or the collection of administrative costs or penalties is—

(1) The Secretary has accepted an installment plan under 4 CFR 102.11;

(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 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) of this section if the Secretary determines that the extension is appropriate.