Although not clear from https://docs.erpnext.com/docs/user/manual/en/student-applicant and video there, IMO it is the payment status as per your need. Has applicant paid registration / application fee or not, it to be confirmed from this filed.
thank you, that paid check box is not reflecting any of the ledgers… right?
True.
It is island. No link / connection anywhere.
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Thank you