Posted Date: April 14, 2017

Author:  John Kane, Acting Service Director, Program Management, Federal Student Aid

Subject: First 2016-2017 Verification Status Code "W" Warning and Deobligation Process Postponed

Typically, in April of each year, we complete the first warning and deobligation process for student records reported with a verification status code of “W”. For this process, we send to schools a warning message stating that we will consider Pell Grant disbursements to all students with a verification status code of “W” as overawards and we will soon reduce the disbursements to a zero dollar amount ($0.00), even though the disbursements were previously accepted in the COD System. Then approximately two weeks following the warning message, we systematically reduce the affected disbursements.

To ensure schools have enough time and resources to complete the verification process, we are delaying the deobligation process for 2016-2017 Pell Grant awards until May 31, 2017. We will provide full details about the first 2016-2017 warning and deobligation process in a forthcoming Electronic Announcement. Note: On April 11, 2017, we inadvertently posted school correspondence to the COD Web Site warning that a school has one or more 2016-2017 student records still reported with a verification status code of “W”. We have removed the inadvertent warning messages from the COD Web Site.

Contact Information

If you have questions about this announcement or about reporting verification status codes to the COD System, contact the COD School Relations Center at 800/474-7268. You may also email


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