34 CFR § 34.30
Application of payments and accrual of interest
August 2, 2023
§ 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.