Typically, in April of each year, FSA completes the first warning and deobligation process for student records reported to COD with a verification status code of “W”. For this process, they send to schools a warning message stating that they will consider Pell Grant disbursements to all students with a verification status code of “W” as overawards and 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, they systematically reduce the affected disbursements.

To ensure schools have enough time and resources to complete the verification process, FSA is delaying the deobligation process for 2016-2017 Pell Grant awards until May 31, 2017. They will provide full details about the first 2016-2017 warning and deobligation process in a forthcoming Electronic Announcement. Note: On April 11, 2017, they 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” and have removed the inadvertent warning messages from the COD Web Site.