Section 5: Financial Aid Programs:

Federal Financial Aid Programs

Walden University is certified by the U.S. Department of Education as being eligible to participate in the Federal Pell Grant program, the Federal Supplemental Educational Opportunity Grant (FSEOG) program, the Federal Teacher Education Assistance for College and Higher Education (TEACH) Grant, and the Federal Direct Loan Program.

The following sections detail the policies related to financial aid programs. Federal regulations that govern the administration of federal aid programs are subject to change. Notification of any regulatory changes will be provided to all students prior to the effective date of the new or revised policy.

Federal Direct Loans are available to undergraduate and graduate students. Students must enroll at least half-time to receive a Federal Direct Loan.

Federal Direct Subsidized and Unsubsidized Loans

Federal Direct Subsidized Loans are need-based loans available only to undergraduate students. The U.S. Department of Education pays the interest on this loan while the student is enrolled at least half-time in school. Students typically have a 6-month repayment grace period for all federal loans. A grace period is a period of time that generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment and usually ends 6 months later. A borrower is not required to make payments during the grace period for subsidized loans made under the Direct Loan program.

Federal Direct Unsubsidized Loans are available to undergraduate and graduate students and are not need-based. The student pays the accruing interest while enrolled in school, unless the student arranges to postpone the interest payment by checking the appropriate box on the Master Promissory Note or contacting their servicer. Interest payments may be deferred for 6 months after graduation. If students are unsure, they can determine who their servicer is by logging in to StudentAid.gov and viewing their aid summary. A student is responsible for paying the interest on their Direct Unsubsidized loan during all periods (including the grace period). If a student chooses not to pay the interest while they are in school and during the grace, deferment, or forbearance periods, the interest will accrue (accumulate) and be capitalized. In other words, the interest will be added to the principal amount owed on the loan.

Federal Direct Graduate PLUS loans are available to graduate students enrolled at least half- time who do not have an adverse credit history. Students may borrow up to the cost of attendance minus any other financial aid received. The total education cost may include tuition and fees, living allowance, books, course materials, supplies, equipment,  and transportation. Graduate students must use their Federal Direct Unsubsidized loan eligibility prior to applying for a Federal Direct Graduate PLUS loan.

Federal PLUS Loans are available to all parents of dependent undergraduate students regardless of income. Qualification is based solely on good credit. They must be the student’s biological or adoptive parent or the student’s stepparent, if the biological or adoptive parent has remarried at the time of application. Their child must be a dependent student who is enrolled at least half-time at Walden. 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, food and housing, books,  course materials, supplies, equipment, transportation, and living allowance.

Federal Pell Grants are generally offered to undergraduate students who have not yet earned a bachelor’s or professional degree. The amount of Federal Pell Grant funds students may receive over their lifetime is limited by federal law to be the equivalent of 6 years (18  quarters) of Federal Pell Grant funding. For more information on how lifetime eligibility is calculated, visit Calculating Pell Grant Lifetime Eligibility Used. Students may view their percentage of Federal Pell Grant used by logging in to StudentAid.gov. Click “View Details” in the “My Aid” section and the “Pell Lifetime Eligibility Used” percentage will be displayed in the “Grants” section under “Aid Summary.” The U.S. Department of Education (ED) determines and keeps track of a student’s Federal Pell Grant Lifetime Eligibility percentage used.

NOTE: In certain situations, an undergraduate student may be eligible to receive up to 150% of their scheduled Federal Pell Grant offer for an award year. This is referred to “year-round Pell.” Students may not receive Pell Grant funds from more than one school at a time. A Federal Pell Grant does not have to be repaid, except under certain circumstances.

2024-2025 Award Year and Forward
Federal Pell Grant funding is based on students' enrollment intensity. Enrollment intensity is the percentage of full-time enrollment at which a student is enrolled, rounded to the nearest whole percent used to determine a student’s annual Pell Grant award. For example, if full-time enrollment is 12 or more credit hours and the student is enrolled in 7 credit hours, the enrollment intensity would be (7 ÷ 12) × 100% = 58%.

Maximum Pell Grant
The ability of a student to receive a maximum Pell Grant (amount determined annually by Congress) will depend on annually published federal poverty guidelines; the U.S. tax return adjusted gross income (or the equivalent for foreign tax filers); state of legal residence; family size; and tax filing status.

The maximum Federal Pell Grant award for the 2024–2025 award year (July 1, 2024–June 30, 2025) is $7,395.

Award Years Prior to 2024-2025
Since the maximum amount of Federal Pell Grant funding students can receive each year is equal to 100%, the 6-year equivalent is 600%. This affects all students regardless of when or where they received their first Federal Pell Grant. The amount a student receives depends on their Expected Family Contribution (EFC), cost of attendance, how many credits they are enrolled for, and whether they are attending for a full academic year or less.

Maximum Pell Grant
The maximum Federal Pell Grant award for the 2023–2024 award year (July 1, 2023–June 30, 2024) is $7,395.

Federal Supplemental Educational Opportunity Grants (FSEOG) are offered to undergraduate students who are enrolled in their first undergraduate program of study and who have exceptional financial need. Funding is extremely limited. Federal Pell Grant recipients with the lowest Student Aid Index (SAI) will be considered first for FSEOG until funds are exhausted. Having a low SAI is not a guarantee that a student will receive this grant. Grant amounts are determined by Walden based on availability of funding. Just like a Federal Pell Grant, this grant does not have to be repaid in most circumstances.

The FAFSA Simplification Act replaced the Iraq and Afghanistan Service Grant (IASG) and Children of Fallen Heroes (CFH) Awards with new or modified Pell Grant eligibility criteria for students whose parent or guardian died in the line of duty while serving on active duty as a member of the Armed Forces on or after September 11, 2001, or actively serving as and performing the duties of a public safety officer and is less than 33 years old as of the first January 1 of the processing year. Eligible students will receive a maximum Pell Grant regardless of their SAI.

The Federal TEACH Grant program is a non-need-based program that provides grants of up to $3,772* per year,* adjusted for sequestration, to graduate students enrolled in an eligible program, as defined by Walden University, and who intends to teach full time in high-need subject areas at schools or educational service agencies that serve students from low-income families.

Recipients of a Federal TEACH Grant must teach for at least 4 years within 8 years of ceasing enrollment from the college program for which the Federal TEACH Grant was awarded. Graduate students may receive up to 2 years of grant funding for a total of $8,000 in lifetime Federal TEACH Grant awards, assuming the program remains eligible for a Federal TEACH Grant. A student may not receive Federal TEACH Grant payments concurrently from more than one school.

The Federal TEACH Grant is only available to students in select education programs at Walden University. Students enrolled less than full time will have their Federal TEACH Grant offer reduced according to a schedule established by the U.S. Department of Education. The amount of the Federal TEACH Grant offered when combined with other student aid cannot exceed a student’s cost of attendance each payment period. Because total financial aid received must not exceed the cost of attendance, receiving a Federal TEACH Grant may reduce the recipient’s eligibility for other sources of financial aid. The Federal TEACH Grant cannot be denied if students reach their aggregate maximum on federal loans. This grant is not based on need and does not factor into their aggregate limit on federal loans.
 
If a student awarded a Federal TEACH Grant either (1) fails to complete the teaching service obligation, (2) does not complete an eligible program for which the Federal TEACH Grant was received, or (3) does not meet any other requirement as defined by the Department of Education, their
Federal TEACH Grant will convert into a Federal Direct Unsubsidized Loan (Direct Unsubsidized Loan), with interest charged from the date the grant was disbursed.

To maintain Federal TEACH Grant eligibility, Federal TEACH Grant recipients who enroll directly from their undergraduate degree must maintain a cumulative GPA of 3.25 or higher GPA at the end of each semester. A cumulative GPA of 3.0 or higher at the end of each semester is required if a student has prior work experience as a teacher or is changing their occupation for any reason and has expertise in a high-need field who is seeking a master’s degree.

It is the student’s responsibility to understand all requirements and rules for the Federal TEACH Grant Program. For more information, go to StudentAid.gov.

*Due to sequestration, for any Federal TEACH Grant first disbursed on or after October 1, 2020, and before October 1, 2025, the maximum offer of $4,000 is reduced by 5.70% ($228), resulting in a maximum offer of $3,772.