Here is a case (not deaf) where the school wanted to provide a modified mainstream setting but the parents enrolled the child in a private school and they paid for it.
http://users.rcn.com/peregrin.enteract/add/carter.txt
"In other words,
school systems are to provide the children with an appropriate special
education instead of drawing lines in the sand and adopting a take it or leave
it attitude. As the result of Carter, school systems are revising and taking
another look at the continuum of special education alternatives that they are
required to offer to handicapped children. In the Second Circuit, when parents
placed children into appropriate private special education programs that were
not on the states "approved" list and if the public school had defaulted in
providing an appropriate education, the parents could not be reimbursed. In
the Second Circuit, the private education was appropriate, but it was not
free. In the Fourth Circuit, pursuant to Carter, given similar facts, the
private school education was appropriate and free. The U. S. Supreme Court
has affirmed this Court's ruling that a special education program should be
appropriate and also be free. "