Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Summary: 2001-2002 Verification Status "W" Deobligation

Publication Date: August 19, 2002

Author: General Manager: FSA School Channel

Summary: 2001-2002 Verification Status "W" Deobligation

Posted on August 20, 2002

TO: All Destination Points
FROM: Pell Grant Processing
RE: 2001-2002 Verification Status "W" Deobligation

As of August 16, 2002, RFMS has reduced to zero ($0.00) all 2001-2002 award payments previously accepted for any student on file with a Verification Status Code of "W". This is in accordance with Federal regulation 34 CFR 668.50. Schools were allowed to pay students with a Verification Status Code of "W" one payment of up to 50% of their scheduled award. With this action, the previously accepted payment has been deobligated and will be reflected in the school's authorization amount in the Department's Grants Administration and Payments System (GAPS).

A PGTX warning message and a list of students who still had Verification Status Code of "W" as of August 2, 2002 were sent to the 533 affected schools on August 5, 2002. Those schools with obligation amounts affected by this procedure will receive a PGTX file indicating the number of students and total amount of the decrease. They will also receive a system-generated negative disbursement file and a new Electronic Statement of Account (ESOA) reflecting the decrease will be sent when the funds are deducted from the school's obligation amount. Schools that do not receive a PGTX file or #G file, did not have any students with Verification Status Code "W" and they will not be affected by this process.

If RFMS "zeroed out" any eligible recipients who are actually entitled to receive a Pell Grant, schools should submit an updated origination record with the correct verification status code (A, C, R, S or T) and transaction number, if necessary. Please be aware, if corrections to the ISIR are necessary, the deadline for electronic corrections is August 27, 2002. (For more information on deadlines see Notice of Deadline and Submission Dates for 2001-2002 Award Year, Federal Register: August 20, 2001,Volume 66, Number 161.)

CPS (1-800-330-5947) can answer questions about the ISIR correction process. Corrections to the origination record will be accepted through September 30, 2002.

After an updated origination record has been accepted, schools may submit disbursement records for disbursements that had been previously approved and then deobligated and for any remaining disbursements that were paid to the student. These disbursements must be submitted with a new disbursement reference number and received by September 30, 2002.

If you have any questions, please contact Pell Grant Customer Service at 1-800-4-PGRANT (1-800-474-7268) or send an e-mail to

Last Modified: 08/18/2002