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The main distinction between an asylum applicant and an asylee is that an asylum applicant has not yet been granted official asylee status. An individual who applies for asylum is seeking protection because they fear persecution in their home country, and until their application is processed and they receive a favorable decision, they remain an applicant.

Once an asylum application is approved, the individual is granted asylee status, which provides them with legal protections and the ability to remain in the country safely. This status allows them to access certain benefits and establishes their eligibility to apply for a green card after a specific period.

While some of the other options touch on related aspects of the asylum process, they do not accurately define the difference between the two statuses in the same fundamental way. For example, being denied asylum does not apply to an asylee, as they have already been granted protection. The notion of an applicant processing their claim, while true, does not specifically delineate it from the status of an asylee. Likewise, the travel freedom of asylees, which may vary based on individual circumstances and legal stipulations, is not the core distinguishing factor between the two terms.