34 CFR 34.30 - Application of payments and accrual of interest.

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§ 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.

(Authority: 31 U.S.C. 3720D)