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1. You will have to look for another school/visa.
2. As long as the school is authorized to issue I-20, you can apply for an F-1 visa. But make sure the school is not running into problems like Tri-Valley University did.

Foreign exchange students will receive a Form I-20 from the DSO of the educational institution that accepted the student to study in the United States. That student must have a Form I-20 to apply for a visa, to enter the United States, and to apply for benefits.

Yes. A stamp is not required on the Form I-20. Some state and federal agencies require foreign students to present a Form I-20 to identify the end date for the student’s program. However, a stamp is not required for this purpose.

An unstamped Form I-20 should have no negative impact on applications for state or federal benefits, including driver’s licenses and state-issued identification cards. USCIS is actively communicating with Departments of Motor Vehicles (DMVs) to ensure their understanding that a Form I-20 does not require a stamp to be valid.

The Form I-20 is endorsed when it is signed by a DSO, which allows the student to travel internationally or apply for employment authorization.

USCIS will accept a photocopy or scanned electronic version of a valid Form I-20 or DS-2019. If USCIS needs to review the original document, USCIS will ask you to provide the original document. USCIS will adjudicate the request electronically. Although the student will receive the approval notice (Form I-797) through the mail, the scanned copy of the Form I-20 will not be stamped and returned. As of Aug. 10, 2012, U.S.