34 CFR § 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.
(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; 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) of this section without regard to the amount of the debt.
(d) The Secretary may exercise waiver under paragraph (b)(2) of this section if—
(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.
(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.