I am new to this so could someone please answer this question - Suppose the application is denied will the person loose the GC status?
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Nope
Nope, your GC is valid for the period that's on your file.
However, if your citizenship is denied for serious reasons like criminal statute, then you may have to worry about it.
If you feel you've probably done something very wrong while you were in the US on any visa or GC and there's a possibility that your citizenship application may be denied, just consult an attorney before doing anything else.
Good luck.
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