34 CFR §304.31

1. (a)Based upon sufficient evidence to substantiate the grounds, the Secretary may grant an exception to the repayment requirement in § 304.30(j), in whole or part, if the scholar—
   1. (1)Is unable to continue the course of study in § 304.30 or perform the service obligation because of a permanent disability; or
   2. (2)Has died.
2. (b)Based upon sufficient evidence to substantiate the grounds, the Secretary may grant a deferral of the repayment requirement in § 304.30(j) during the time the scholar—
   1. (1)Is engaging in a full-time course of study at an institution of higher education;
   2. (2)Is serving on active duty as a member of the armed services of the United States;
   3. (3)Is serving as a volunteer under the Peace Corps Act; or
   4. (4)Is serving as a full-time volunteer under title I of the Domestic Volunteer Service Act of 1973.