We propose an observational test that can break the indeterminacy of two ma
in classes of microlensing models of the Magellanic Clouds: (a) the lenses
are located in the Galactic halo, and (b) the lenses are located in the LMC
disk. The source stars in the latter (self-lensing) models tend to be at t
he far side or behind the LMC disk, thus experiencing more reddening and ex
tinction by dust in the LMC disk than ordinary stars in a nearby line of si
ght. Clearly, such bias would not occur in the MACHO halo lensing models. W
e show that this reddening effect is at a level readily observable for the
present 30 or so microlensing alerts fields, either with multiband photomet
ry from a good seeing site, or more definitively with ultraviolet (UV) spec
troscopy with Space Telescope Imaging Spectrograph. Stars behind the LMC du
st layer should stand out as UV-faint objects (by more than 1 mag than aver
age stars in the LMC). HST can also resolve numerous faint neighboring star
s within a few arcseconds of a lensed source, hence removing blending in th
ese crowded regions and building a reddening map to control the patchiness
of dust.