Section 309.5 - Interest, penalties, and administrative costs(a) Except as otherwise provided by statute, contract or excluded in accordance with FCCS, Peace Corps will assess:(1) Interest on unpaid debts in accordance with 31 CFR 901.9 .(2) Penalty charges at a rate of 6 percent a year or such other rate as authorized by law on any portion of a claim that is delinquent for more than 90 days.(3) Administrative charges to cover the costs of processing and handling delinquent debts.(4) Late payment charges that shall be computed from the date of mailing or hand delivery of the notice of the claim and interest requirements.(b) When a debt is paid in partial or installment payments, amounts received shall be applied first to outstanding penalty and administrative cost charges, second to accrued interest, and then to outstanding principal.(c)Waiver. Peace Corps will consider waiver of interest, penalties and/or administrative costs in accordance with the FCCS, 31 CFR 901.9(g) .