611.45—Under what circumstances does the Secretary discharge a scholarship recipient's obligation to repay for failure to meet the service obligation?

(a) The Secretary discharges the obligation of a scholarship recipient to repay the scholarship, interest, and any costs for failure to meet the service obligation based on information acceptable to the Secretary of—
(1) The recipient's death; or
(2) The total and permanent physical or mental disability of the recipient that prevents the individual from being employable as a classroom teacher.
(b) Upon receipt of acceptable documentation and approval of the discharge request, the Secretary returns to the scholarship recipient, or for a discharge based on death to the recipient's estate, those payments received after the date the eligibility requirements for discharge were met. The Secretary returns these payments whether they are received before or after the date the discharge was approved.
(Approved by the Office of Management and Budget under control number 1840-0753)

Code of Federal Regulations

(Authority: 20 U.S.C. 1024(e) )