The Office shall waive a recipient's service and repayment obligations if it determines:
A. On the basis of a sworn affidavit of 2 qualified physicians, that the recipient is permanently unable to fulfill the service obligation, on a full-time or part-time basis, because of a permanent impairment; or
B. On the basis of a death certificate or other evidence of death that is conclusive under State law, that the recipient has died.