Application of payments and accrual of interest.
34 C.F.R. § 34.30
in effectEffective: 2024-07-01We 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.
Source: eCFRURL: https://www.ecfr.gov/api/versioner/v1/full/2024-07-01/title-34.xmlFetched: 7/26/2026