; or (ii) enter into contracts for the recovery of such damages with collection agencies selected by the Secretary. (C) Contracts for recovery of damages Each contract for recovering damages pursuant to this paragraph shall provide that the contractor will, not less than once every 6 months, submit to the Secretary a status report on the success of the contractor in collecting such damages. Section 3718 of title 31, United States Code, shall apply to any such contract to the extent not inconsistent with this subsection. (4) Death Upon the death of an individual who receives, or has received, a scholarship under this subpart, any obligation of such individual for service or payment that relates to such scholarship shall be canceled. (5) Waiver (A) Required waiver The Secretary shall provide for the partial or total waiver or suspension of any obligation of service or payment of a recipient of a scholarship under this subpart, if the Secretary determines that— (i) it is not possible for the recipient to meet the obligation or make the payment; (ii) requiring the recipient to meet the obligation or make the payment would result in extreme hardship to the recipient; or (iii) the enforcement of the requirement to meet the obligation or make the payment would be unconscionable. (B) Permissible waiver Notwithstanding any other provision of law, for other good cause shown, the Secretary may waive, in whole or in part, the right of the United States to recover funds made available under this section. (6) Bankruptcy (A) In general Subject to subparagraph (B), and notwithstanding any other provision of law, with respect to a recipient of a scholarship under this subpart, no obligation for payment may be released by a discharge in bankruptcy under title 11. (B) Exception The prohibition described in subparagraph (A) shall not apply if— (i) such discharge is granted after the expiration of the 5-year period beginning on the initial date on which that payment is due