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In limited circumstances, an agency may increase an administrative debt by the cost of living adjustment (COLA) in lieu of charging interest, penalties, and administrative costs. The COLA alternative can be used only when: (1) the debt is an administrative debt (e.g., a fine, penalty, fee or overpayment), not a loan or debt arising from a loan guaranty; and (2) assessment of late charges is not cost effective or technically feasible, and a complete waiver of late charges is not supportable.