F1 student also a derivative beneficiary of Green card - 204 I situation


Registered Users (C)
Thanks in advance for the help. I (primary petitioner) applied for GC for my sister(primary beneficiary), while the application was pending, she died tragically in a road accident. When I had applied, I had added her son (my nephew) who was a minor, as a derivative beneficiary. Later, I updated USCIS with the fact that she had died and requested that they keep the petition alive. They declined saying she was not present in US at the time of her death(!). Heartbroken, I left it at that.

Recently, I heard of 204(I), which talks about allowing derivative beneficiary to continue application IF the derivative beneficiary(or one of the derivative beneficiaries) were present in the USA at the time of my sister's death. At the time of my sisters death, my nephew was a minor studying in school.

I have a few questions -
1) Is there a clause in 204(I) that allows for my nephew to continue this application because he was a minor at the time of application and 18 years old at the time of my sisters' death(still in school)?
2) He is currently on a Student-Visa doing his Masters degree(great student on fellowship etc) in USA. Does that provide USCIS enough confidence that he is a student of good standing and is residing lawfully in the USA and hence allow him to continue the application?
3) Can you think of any negatives of even applying for 204-I? I do not want his current Student Visa status to be negatively affected(citing immigration intent on a non-immigrant visa).

I would be immensely grateful if you may offer any advice.

Thanks so much