Your school DSO is not well versed in the regulations for SEVIS.
Even if the school terminates your status your SEVIS record can still be transferred to the transfer in school.
And as far as the visa goes, your visa is still valid even if you pay a new SEVIS fee and have a new SEVIS number.
Here is the ICE website on the issue
See topic WHAT ARE CHOICES FOR STUDENT WITH TERMINATED SEVIS
The student has three choices.
- Apply to USCIS for reinstatement before transferring to another school. The student must continue to maintain a full course of study and otherwise abide by the regulations governing F-1 students while USCIS adjudicates the reinstatement. See the USCIS website for information on how to file for reinstatement.
If USCIS denies the reinstatement application , the student must leave the United States immediately or risk being placed in removal proceedings at any time under §237(a)(C)(i) of the Immigration and Nationality Act (INA), as amended.
- Request that you transfer the Terminated record to the transfer-in school. You will needconfirmation that the student received acceptance to the new school.
- On the transfer release date, the transfer-in DSO becomes responsible for the student’s SEVIS record, making the recommendation for reinstatement on the student’s SEVIS record, and issuing the student a new Form I-20 for the reason of reinstatement.
- The student will be responsible for properly filing for reinstatement with USCIS. The student must intend to pursue a full course of study at the next available term or within five months, whichever is earlier, at the transfer-in school (8 CFR 214.2 (f)(16)(i)(C)).
- The student must begin to attend the transfer-in school in the next available session even if USCIS has not yet adjudicated the application for reinstatement. If USCIS denies the reinstatement application , the student must depart the United States.
- Get an Initial Form I-20 from the new school. The student must exit the United States and return as an initial entry in a new F-1 nonimmigrant status (initial admission). A student who chooses this option must pay the SEVIS I-901 fee. The student will also lose credit for any time accumulated toward qualification for benefits such as optional or curricular practical training (CPT).
If the student’s visa is valid, the student does not need a new visa if returning to the United States within five months of the exit date. If the student has a Terminated record because of a failure to maintain status or has violated any provision of the INA, as amended, the student may be denied re-entry to the United States under §212(a)(6)(G) of the INA, as amended.
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