Interest on Child Support Arrears in Alaska: Rate, Simple vs. Compound and When It Applies
The Alaska child support interest rate is 6% a year, or a lower federal maximum. The agency charges it on arrearages upon notice once a payment is 10 or more days overdue, and not on late current payments that are being withheld from pay.
What is the child support interest rate in Alaska?
The rate of interest on child support arrearages is six percent a year, or a lesser rate that is the maximum rate permitted under federal law (AS 25.27.025). The agency adopts regulations establishing a uniform rate of interest on arrearages that is charged to the obligor upon notice if child support payments are 10 or more days overdue or if payment is made by a check backed by insufficient funds (AS 25.27.020(a)(2)(B)). The agency’s interest regulation is 15 AAC 125.840.
When does interest start on unpaid Alaska child support?
Each periodic support payment is a judgment that becomes vested when it becomes due and unpaid (AS 25.27.225), but the agency charges interest on arrearages upon notice once payments are 10 or more days overdue. The Alaska arrears calculator measures from each due date, so the agency’s figure can differ by the days before notice.
Is Alaska child support interest simple or compound?
The statutes we read set a yearly rate and do not provide for compounding, so the calculator uses simple interest on each unpaid installment. Ask the agency how its system applies the regulation.
How much interest is that? A worked example
Monthly support of $500, the newest installment just due:
| Case | Interest at 6% | Total owed |
|---|---|---|
| 6 unpaid installments of $500 | $37.50 | $3,037.50 |
| 12 unpaid installments of $500 | $165.00 | $6,165.00 |
| 24 unpaid installments of $500 | $690.00 | $12,690.00 |
| 36 unpaid installments of $500 | $1,575.00 | $19,575.00 |
Interest on an installment is the installment times 6% times the time it has gone unpaid: a $500 payment unpaid for 12 months earns $30.00.
Is there interest on late payments that are being withheld from pay?
Not on a late payment of current support: an obligor may not be charged interest on late payment of a child support obligation, other than a payment on arrearages, if the obligor is employed and income is being withheld under an income withholding order, is receiving unemployment compensation from which support is being withheld, or is receiving disability compensation under the workers’ compensation law from which support is being withheld (AS 25.27.020(a)(2)(B)).
How do payments reduce arrears and interest?
When the agency withholds money, it must take enough to cover the monthly support and, if there is past-due support, something to start paying off the debt and interest (agency FAQ). A licensing payment agreement is the full monthly support plus interest, plus an amount toward the arrears (licensing FAQ).
What if you cannot afford the interest?
The interest is part of what the agency collects. A licensing payment agreement is the full monthly support plus interest plus an amount toward the arrears, and a hardship request can change only the arrears portion; if you think the monthly support is too high, you can ask to modify it, and for an agency order the agency checks whether your circumstances changed by at least 15% (licensing FAQ). Use the Alaska child support modification calculator to see whether the 15% test is met, because only installments after service can change.
Where do you get the official figure?
Ask the Child Support Enforcement Division for a balance statement before relying on any estimate, and check whether Alaska arrears can be reduced.
Frequently asked questions
What is the Alaska interest rate on back child support?
6% a year, or a lesser rate if federal law sets a lower maximum (AS 25.27.025).
When does Alaska start charging interest on child support?
Upon notice once payments are 10 or more days overdue, under AS 25.27.020(a)(2)(B).
Is Alaska child support interest compounded?
The statutes we read set a yearly rate and do not provide for compounding; this calculator uses simple interest.
Does Alaska charge interest on late current support withheld from wages?
No, not on a late payment of current support while support is withheld from wages, unemployment compensation or workers' compensation; interest can be charged on arrearages.
Where can I check my Alaska child support balance?
Ask the Child Support Enforcement Division for the official balance.
Official sources
- AS 25.27.225: support payment obligations as judgments
- AS 25.27.226: collection of past due support
- AS 25.27.020: duties of the agency, interest and arrears forgiveness
- AS 25.27.025: rate of interest
- Alaska Civil Rule 90.3(h)(2): no retroactive modification
- Alaska Child Support Enforcement Division: Permanent Fund Dividend FAQ
- Alaska Child Support Enforcement Division: licensing FAQ
A local family law attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Alaska statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Alaska attorney.