A deferral or repayment exception to the requirements of Sec. 386.34(c)(1) may be granted, in whole or part, by the Secretary as follows:
(a) Repayment is not required if the scholar--
(1) Is unable to continue the course of study or perform the work obligation because of a disability that is expected to continue indefinitely or result in death; or
(2) Has died.
(b) Repayment of a scholarship may be deferred during the time the scholar is--
(1) Engaging in a full-time course of study at an institution of higher education;
(2) Serving, not in excess of three years, on active duty as a member of the armed services of the United States;
(3) Serving as a volunteer under the Peace Corps Act;
(4) Serving as a full-time volunteer under title I of the Domestic Volunteer Service Act of 1973;
(5) Temporarily totally disabled, for a period not to exceed three years; or
(6) Unable to secure employment as required by the agreement by reason of the care provided to a disabled spouse for a period not to exceed 12 months. (Authority: 29 U.S.C. 771(c) and 771a(b))