28 CFR 32.35 - Disqualification.
No claim shall be approved if the claimant is -
(a) In default on any student loan obtained under 20 U.S.C. 1091 (higher education assistance), unless, for good cause shown, the Director grants a waiver; or
(b) Subject to a denial of federal benefits under 21 U.S.C. 862 (drug traffickers and possessors).