Title 38 — Veterans' BenefitsRelease 119-73

§7634 Breach of agreement; waiver of liability

Title 38 › Part PART V— - BOARDS, ADMINISTRATIONS, AND SERVICES › Chapter CHAPTER 76— - HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAM › Subchapter SUBCHAPTER IV— - ADMINISTRATIVE MATTERS › § 7634

Last updated Apr 6, 2026|Official source

Summary

If a person in the Educational Assistance Program dies, any duty they had to perform service or to pay damages ends. The Secretary must create rules that let the government waive or pause a person’s service or payment duty when missing the requirement was caused by things they couldn’t control or when waiving or pausing is in the best interest of the United States. A damages payment owed by a program participant cannot be discharged in bankruptcy under Title 11 until a five-year period has passed from the first date the payment was due.

Full Legal Text

Title 38, §7634

Veterans' Benefits — Source: USLM XML via OLRC

(a)An obligation under the Educational Assistance Program (or an agreement under the program) of a participant in the Educational Assistance Program for performance of services or payment of damages is canceled upon the death of the participant.

(b)The Secretary shall prescribe regulations providing for the waiver or suspension of any obligation of a participant for service or payment under the Educational Assistance Program (or an agreement under the program) whenever noncompliance by the participant is due to circumstances beyond the control of the participant or whenever the Secretary determines that the waiver or suspension of compliance is in the best interest of the United States.

(c)An obligation of a participant under the Educational Assistance Program (or an agreement thereunder) for payment of damages may not be released by a discharge in bankruptcy under title 11 before the expiration of the five-year period beginning on the first date the payment of such damages is due.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1991—Pub. L. 102–40 renumbered section 4334 of this title as this section. Subsec. (b). Pub. L. 102–83 substituted “Secretary” for “Administrator” in two places.

Reference

Citations & Metadata

Citation

38 U.S.C. § 7634

Title 38 — Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73