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Inside.Waldenu.Edu>Financial Aid>Types of Aid
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Types of Aid
Federal Pell Grants Federal Pell Grants are generally awarded to undergraduate students who have not yet earned a bachelor's or professional degree. The Department of Education, using a standard formula established by Congress, determines eligibility. The Pell Grant range for the 2006-2007 award year is $400 - $4,050. How much a student receives will depend on their expected family contribution (EFC), cost of attendance and whether the student is enrolled full-time or part-time and whether attending for a full academic year or less. Students can receive only one Pell Grant in an award year. Students may not receive Pell Grant funds from more than one school at a time.
Federal Work Study Federal Work-Study Program is a federally funded program that provides subsidizes part time employment for students with financial need. The listed amount in your aid package is the allotment of money that you may earn during the academic year. Federal Work Study awards are not credited to student accounts. Work-Study allows students to earn money to help cover expenses such as, tuition, books, and transportation.
The purpose of the FWS Program is to provide part-time employment for undergraduate and graduate students to help them defray education costs. In addition, to the extent practicable, Walden will offer students FWS positions that complement and reinforce their educational program or career goals.
Solely the Office of Financial Aid, based on Federal regulations and confidential information regarding the student’s financial status, makes determination of eligibility for the FWS program.
In February 2005, Walden University became the first online university to participate in the U.S. Department of Education’s Federal Work-Study (FWS) Program. Walden’s first Federal Work-Study allocation will be awarded to students beginning in the fall (September) of the 2005-2006 academic year.
Federal Subsidized Stafford Loans
Federal Unsubsidized Stafford Loans This loan is available, in whole or part, to degree-seeking undergraduate and graduate students who either do not meet the need requirement for, or want to borrow in excess of, the amount available under the Federal Subsidized Stafford Loan. The annual potential maximum for undergraduate students is $10,500. For graduate students, $18,500 (less Subsidized Stafford Loan eligibility) is the annual maximum. Loans borrowed at a prior institution may impact the student's loan eligibility at Walden University. Lower thresholds apply for half-time enrollment. A 3 percent origination fee is deducted from each disbursement of the loan. The interest on this loan is the responsibility of the student. The student may choose to pay the interest while in school are have it capitalized (added to the principal). The interest rate is variable but will never exceed 8.25 percent. The aggregate a student may borrow, including total borrowing under both the subsidized and unsubsidized loans, is $138,500.
Graduate PLUS Loans
Graduate PLUS loans, part of the Federal Family Education Loan Program (FFELP), are now available for graduate and professional students! Student applicants must be enrolled at least half-time and cannot have adverse credit history. Students must complete the FAFSA application prior to applying and have applied for the maximum in the federal Stafford loan. Featuring a low fixed interest rate of 8.5%, a graduate PLUS loan allows the student to fund up to 100% of the cost of their graduate or professional education less any financial aid already awarded. This new federal loan will be available for certification on July 1, 2006, or after.
Loan Amounts
Interest Rate
Repayment
All parents and legal guardians are eligible to apply for the PLUS loan, regardless of income. Qualification for a PLUS loan is based solely on good credit, and there are no debt-to-income ratio guidelines or employment verification requirements. It is not necessary for you to complete a FAFSA (Free Application for Federal Student Aid) prior to applying.Parents and students must complete the PLUS application, designate a lender, and forward the completed application to Walden University's Financial Aid Office. The school completes its portion and forwards it to the processing agent, and at this time a credit check is done.If the loan is approved, funds are made payable to Walden University and the parent. Disbursement is usually done in three equal amounts at the beginning of each semester/quarter and is sent directly to the school. A federal origination fee may be deducted from the proceeds.
Loan Amounts 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.
Interest Rate Generally, the interest rate charged will be variable, based on the 91-Day Treasury Bill plus 3.1% and adjusted annually with a cap of 9%. Parents who elect to have their monthly payment deducted out of a bank account automatically will receive an instant interest rate reduction of .25%.
Repayment 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 (minimum is based on term of the loan or at least $50 per month) for a portion of the repayment term.
Other Financial Assistance
Veterans Benefits
Office of the Registrar
The registrar processes enrollment certification forms (Form 22-1999) after each academic quarter for students who have either completed course credits or had a KAM or dissertation ratified.
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