Should undergraduate loans be removed when a graduate loan is reported on the NSLDS FAH file?

Summary:

Michigan State University is working through some disbursement QC holds from prior years going back to our 2021-2022 implementation year. These are TIV loans disbursed on an undergraduate SAFI that remains open in SFP (not Graduated or Withdrawn).

The trigger to remove the loans from these closed out years is an NSLDS FAH file. These files contain graduate level loans for the 2025-2026 award year. The majority of these loans are from other institutions, but I also have an example of a student pursuing both a second bachelor's degree and graduate degree simultaneously at MSU.

When digging further to determine what about the file is causing the QCs, I found that the grade level on the graduate loan detail record is the trigger. When I alter the "A" (First Year Graduate/Professional) grade level to "4" (Senior/Fourth Year) for testing, I found the A would remove the loans whereas the 4 did not.