Federal Programs
 

Walden University is certified by the U.S. Department of Education as being eligible to participate in the Federal Work-Study program and the Federal Family Educational Loan program under the Higher Education Act of 1965, as amended. This section details the policies related to financial assistance programs. Federal regulations that govern the administration of federal programs are subject to change. Notification of any change will be provided to all students prior to the effective date of the new or revised policy.

 

Teacher Education Assistance for College and Higher Education (TEACH) Grant

Starting in January 2009, the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program provides up to $4,000 a year in grant assistance to students who plan on becoming full-time teachers and who meet certain criteria. Recipients of the grant are required to teach at least 4 academic years within 8 calendar years of completing the program of study for which the grant was received. If a student receives a TEACH Grant and does not complete the required teaching, the student must repay the grant as an unsubsidized Federal Stafford Loan (see the Stafford Loans section). The TEACH grant is not need-based; however, all students interested in applying for this grant must complete a Free Application for Federal Student Aid (FAFSA) for the appropriate year. 

 

Federal Work-Study

Federal Work-Study provides subsidized part-time employment for students with financial need, giving them an opportunity to earn money to help cover their educational expenses, such as tuition, books, and transportation to residencies, as well as providing them with positions that complement their educational programs or career goals, whenever possible. To be eligible for work-study employment, students must be in good academic standing and enrolled at least half-time or accepted for enrollment. The Office of Financial Aid provides as many work-study positions as funding allows. Priority is given to students with financial need who complete the FAFSA by July 1 each year.

 

Family Educational Loans

Stafford Loans

Federal Stafford Loans are available to students as either subsidized or unsubsidized loans. Students must be enrolled at least half time to receive a Stafford Loan. Students may be eligible for one or the other, or a combination of both loan types. Federal Stafford Loans borrowed at a prior institution may impact a student’s loan eligibility at Walden University.

 

Subsidized Federal Stafford Loans are need-based. The federal government pays the interest on the subsidized portion of the loan while the student is enrolled at least half time in school.

 

Unsubsidized Federal Stafford Loans require that the student pay the interest while enrolled, unless the student arranges to postpone the interest payment by checking the appropriate box indicated on the promissory note. Students should be careful when choosing this option: It means that the interest will be capitalized (the accrued interest will be added to the principal amount), and that will increase the amount of the debt.

 

Both the subsidized and unsubsidized loans may have origination and default fees deducted from each disbursement of the loan. The origination fee is 1 percent of the total amount borrowed, and the guarantee fee may be as high as 1 percent of the total amount borrowed. In addition, the student must begin repayment 6 months after graduating, withdrawing, or enrolling for less than half-time status.

 

Credit checks are not a requirement to obtain a Stafford Loan. Under these programs, students may borrow up to their maximum loan limit every award year (i.e., 9 months for quarter-based, 12 months for semester-based). Loan funds can be used to cover direct educational costs such as tuition and fees, as well as indirect costs such as travel to and from residency sessions, technology, books, and other education-related expenses.

 

Stafford Loan Amount Maximums (for Loans First Disbursed After 7/1/2008)

 

Time Frame	Graduate (Master’s, Doctoral, Post-Doctoral) Students	Teacher Preparation or Endorsement Students Who Do Not Choose the M.S. Degree Option		Students Enrolled in Preparatory Courses for the M.S. Degree Program in Nursing
		Dependent Students*	Independent Students	Dependent Students*	Independent Students
Per Academic Year	$20,500 – Only $8,500 of this amount may be in subsidized loans.	$7,500 – Only $5,500 of this amount may be in subsidized loans.	$12,500 – Only $5,500 of this amount may be in subsidized loans.	$7,500 – Only $5,500 of this amount may be in subsidized loans. Note: Students are eligible for this loan for one consecutive 12-month period.	$12,500 – Only $5,500 of this amount may be in subsidized loans. Note: Students are eligible for this loan for one consecutive 12-month period.
Lifetime Maximum Total Debt from Stafford Loans	$138,500 – Only $65,500 of this amount may be subsidized loans. Note: The graduate debt limit includes Stafford Loans received for undergraduate study.	$31,000 – Only $23,000 of this amount may be subsidized loans.	$57,500 – Only $23,000 of this amount may be subsidized loans.	$31,000 – Only $23,000 of this amount may be subsidized loans.	$57,500 – Only $23,000 of this amount may be subsidized loans.

* Dependent students whose parents have been denied a federal Parent Loan for Undergraduate Student are eligible to borrow at the independent undergraduate level.

 

Federal Graduate PLUS Loans

Graduate PLUS loans are available to graduate students enrolled at least half-time who do not have an adverse credit history. Students can borrow up to the cost of attendance minus any other aid. The total education cost can include tuition, living allowance, books and supplies, and transportation. As of July 1, 2008, the interest rate is fixed at 8.5 percent. Students can defer payments while in school, and there is no prepayment penalty.

 

Parent Loans for Undergraduate Students (PLUS)
PLUS Loans are available to all parents and legal guardians of dependent undergraduate students regardless of income. Qualification is based solely on good credit. There are no debt-to-income ratio guidelines or employment verification requirements. Parents may borrow up to the total education cost for the year, minus any other financial aid that the student is receiving. The total education cost can include tuition and fees, room and board, books and supplies, transportation, and living allowance. As of July 1, 2008, the interest rate is fixed at 8.5 percent. PLUS loan repayment normally begins within 60 days after the loan has been fully disbursed. In certain circumstances, parents may elect to repay the loan on a graduated repayment schedule, making interest-only payments (with the amount based on the term of the loan, at least $50 per month) for a portion of the repayment term.

 

Financial Aid Application Process

Applying for federal financial assistance is a two-part process consisting of (a) application and notification of eligibility, and (b) completion of the master promissory note, entrance interview, and online Financial Aid Data Request information. This process takes approximately 2–4 weeks from the initial application through the receipt of funds. Students are strongly encouraged to begin the application process at least 8 weeks prior to the beginning of the start/renewal date to ensure the following deadlines are met:

• The Free Application for Federal Student Aid (FAFSA) must be submitted no later than 15 days prior to the student’s effective start date, as well as each subsequent loan renewal date.
• A fully executed master promissory note, entrance interview, and online Financial Aid Data Request information must be on file in the financial aid office no later than 14 days after the student is notified of the award.

Note: Walden University’s Title IV code is 025042.

 

Student Eligibility Requirements

To receive aid from any of the federal student aid programs administered by Walden University’s Office of Financial Aid, a student must meet all of the following criteria:

• Be a U.S. citizen or eligible non-citizen.
• Have a high-school diploma or a GED certificate, or pass an approved ability-to-benefit (ATB) test.
• Enroll in an eligible program as a regular student seeking a degree or certificate.
• Register (or have registered) with the Selective Service if a male between the ages of 18 and 25.
• Have a valid Social Security number.
• Meet satisfactory academic progress standards.
• Not be in default on a federal student loan nor owe money on a federal student grant.

Verification Policy

In accordance with U.S. Department of Education regulations, Walden University is required to verify the accuracy of financial aid application information on selected students. Students may be selected randomly for verification or may be selected on the basis of predetermined criteria. This selection process occurs at the Federal Central Processing Center. The university may also select applications for verification.

 

Financial aid awards cannot be determined until verification is complete. Failure to complete the verification process will result in a student’s inability to utilize federal financial assistance for that award year. Students intentionally misreporting information and/or altering documentation for the purpose of increasing aid eligibility or fraudulently obtaining federal funds will be reported to the Office of the Inspector General or to local law enforcement officials.

 

Residency Policy

Students cannot receive federal financial aid for any term for which they register for a residency only. The financial aid office reviews registrations at the start of each term and cancels federal aid for any students registered for residency only. Students who cannot register for a regular course along with the residency may apply for a loan through a private lender. 

 

Enrollment Policy

Financial aid is offered based on the assumption that students will be enrolled full time for the entire period of the award. When students enroll for fewer credits in a term, their aid may be adjusted at the end of the add/drop period to reflect their current enrollment status. Students must be enrolled at least half time to remain eligible for federal student aid.

 

Enrollment Statuses for Financial Aid 

Enrollment Status	Graduate (Master’s, Doctoral, Post-Doctoral) Students	Students Enrolled in Teacher Preparation or Endorsement Programs or in Preparatory Courses for the M.S. Degree Program in Nursing
Full time	6 credits per term	12 credits per term
Three-quarter time	n/a	9–11 credits per term
Half time	3–5 credits per term	6–8 credits per term
Less than half time	0–2 credits per term	0–5 credits per term

Loan Disbursement Process and Requests for Excess Funds

Student loan proceeds are disbursed in three equal payments over the loan period and are forwarded via electronic funds transfer (EFT) to Walden after the start of each academic term. For students not electing to participate in the EFT process, each lending institution provides Walden with co-payable checks. These checks are forwarded to students for endorsement and must be returned to Walden for deposit into the student’s account.

 

Students in good standing may have any excess balance in their account returned to them to pay for indirect educational expenses. Any time loan proceeds credited to a student’s account exceed direct charges, the bursar’s office will automatically forward the credit balance directly to the student, no later than 14 days after the credit balance occurs.

 

Students are responsible for payment of tuition and fees incurred after a full refund has been released (e.g., graduation fees, added courses, residencies). Refund distributions are made in accordance with applicable federal guidelines. Any outstanding debt to the university as a result of a required refund is the responsibility of the student.

 

Loan Deferment Paperwork

Student loan deferment forms requesting enrollment verification can be sent directly to Walden University, Office of the Registrar, Attn: Loan Deferment, 650 S. Exeter Street, Baltimore, MD 21202; fax: 1-410-843-6416. Students must obtain the forms from their lender(s). At the top of the form, students should include their start date and the term for which they are requesting a deferment. Note: Any deferment paperwork sent to Walden’s registrar’s office for enrollment verification is forwarded to the National Student Clearinghouse on a weekly basis.

 

Leave of Absence

A student who takes an approved leave of absence is considered, for financial aid purposes, to have withdrawn from the school. A leave of absence is approved if the following criteria are met:

• The student has made a written request for the leave of absence.
• The leave of absence does not exceed 180 days.
• The student has had only one leave of absence in a 12-month period.

The federal Return of Title IV refund requirement applies to leaves of absence and withdrawals for recipients of Title IV aid.

 

These leave of absence requirements also affect students’ in-school status for the purposes of deferring payment of Federal Stafford Loans. Students on an approved leave of absence are considered to be enrolled less than half time and are not eligible for an in-school deferment for their Federal Stafford Loans. Students who take an unapproved leave of absence or fail to return to the school at the end of an approved leave of absence are no longer enrolled at the school and are not eligible for an in-school deferment of their loans.

 

Satisfactory Progress for Receipt of Financial Aid

Walden University’s satisfactory academic progress requirements for receipt of Title IV student financial assistance comply with U.S. Department of Education regulations. These standards are intended to establish minimum, reasonable levels of advancement toward degree completion and to guard against abuse of aid programs. Satisfactory progress requirements for receipt of financial aid are separate and distinct from the university’s academic progress requirements for academic continuance. Academic progress requirements are reviewed each year, and adjustments are made accordingly.

 

Minimum Progress Requirements for Continued Receipt of Financial Aid

 

Programs of Study	Minimum Progress Requirements*
Teacher preparation and endorsement programs Master’s degrees Ed.D. Ph.D. in Public Health Ph.D. in Psychology Post-Doctoral Psychology Certificate	1)      Students in these course-based programs must successfully complete 67% of all courses attempted† (e.g., if 40 credits are attempted, the student must successfully complete 27 credits). 2)      Students must maintain a minimum 3.0 cumulative GPA. 3)      Aid cannot continue beyond 150% of the published length of the program, as measured in credits attempted.
Ph.D. in Applied Management and Decision Sciences Ph.D. in Education Ph.D. in Health Services Ph.D. in Human Services Ph.D. in Public Policy and Administration	1)      Students in these KAM-based programs must successfully complete 67% of all courses attempted† including SBSF 7100 Research Forum credits (e.g., if 40 credits are attempted, the student must successfully complete 27 credits). 2)      Students in mixed-model programs must maintain a minimum 3.0 cumulative GPA. 3)      Aid cannot continue beyond 32 quarters of enrollment.

* Minimum progress requirements for financial aid do not include academic residency requirements.

 

† Attempted credits include all transferred credits and all registered courses at Walden with the exception of courses dropped before the start of the term or during the drop period. When courses are repeated, only the most recent grade is calculated in the cumulative GPA; however, all attempts are counted in the course completion rate and the maximum timeframe for financial aid purposes.

 

Financial Aid Probation

The financial aid office reviews progress annually. Students who do not meet the above progress standards are placed on financial aid probation for two terms. During this probation period, students remain eligible for financial assistance. Students who fail to meet the minimum progress requirements after completing the two-term probation period become ineligible to receive Title IV Aid until such time as the progress requirements are met. Students may appeal for a one-term extension of aid if they can document that circumstances beyond their control affected their ability to progress at the required rate. A change in the academic program does not supersede the above statement.

 

Students who become ineligible to receive financial aid but remain in compliance with the academic progress standards for continuance in their program are not withdrawn from the program but must arrange for alternative payment with the bursar by the appropriate tuition due date.

 

Right to Appeal

Occasionally, a student’s academic progress may be delayed by circumstances that are beyond the student’s control. In instances such as this, the student may appeal to the financial aid office no later than 10 days following the notification of financial aid denial. If the appeal is accepted, the student must meet the requirements set forth by the written approval of the appeal. Students may not appeal the decision a second time.