Navigating Walden University's Scholarship and Financial Aid Refund Policies

Understanding the financial aid process and refund policies at Walden University is crucial for students to effectively manage their educational finances. This article aims to provide a comprehensive overview of Walden University's scholarship refund policy, including key terms, eligibility criteria, and procedures for handling financial aid refunds.

Key Financial Aid Terms at Walden University

Navigating the world of federal financial aid requires familiarity with specific terminology. Here's a breakdown of essential terms:

Academic Year: Walden University defines the financial aid academic year as three consecutive quarters or semesters for course-based programs. For Tempo Learning® Programs, it's a 52-week period with a specific number of credit equivalencies based on the program.

Aggregate Level: This refers to the maximum loan amount a student can receive from the federal government throughout their academic career.

Annual Award Year: The annual award year begins when a student starts classes and continues for three consecutive semesters or quarters. Award years continue until a program is completed.

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Annual Limit: This is the maximum amount of federal financial aid a student can receive in an academic year.

Book Advance: Students needing help with book costs can receive an early payment of up to $500 against their future financial aid refund.

Contributor: Starting with the 2024-25 FAFSA®, this term refers to anyone required to provide consent, approval for federal tax information (FTI), and their signature on the FAFSA® form.

Cost of Attendance (COA): The COA encompasses the estimated combined cost of tuition, fees, books, course materials, supplies, equipment, living expenses (food and housing), transportation, and personal expenses for a specific program within an award year.

Disbursement: A disbursement occurs when the government sends federal loans and grants to Walden University to pay a student’s bill, including tuition, fees, and book advances. If the disbursed amount exceeds the student’s billed amount, a refund is created.

Drop: Dropping a course refers to the process of removing it from your schedule before the start or within the add/drop period. This results in no tuition charges and the course does not appear on your transcript.

Eligibility: Eligibility for federal loans and grants can change based on factors like registration rules and satisfactory academic progress.

Expected Family Contribution (EFC): (Used through 2023-24 FAFSA) The EFC is the amount a student is expected to contribute towards their education, according to the federal FAFSA results. Starting 2024-25 FAFSA the Expected Family Contribution (EFC) is replaced by Student Aid Index (SAI).

Federal Financial Aid Programs: These programs include federally funded grants and loans offered to students to pay for their education. The government funds are sent directly to the school on behalf of the student for bill payment and refund processing.

Federal Pell Grant: A federal grant typically awarded to undergraduate students who have not yet earned a bachelor’s or professional degree.

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Federal Supplemental Educational Opportunity Grant (FSEOG): A federal grant awarded to undergraduate students enrolled in their first undergraduate program of study who demonstrate exceptional financial need. Funding is extremely limited.

Subsidized Loan: A federal need-based loan available only to undergraduate students.

Unsubsidized Loan: A federal loan available to undergraduate and graduate students that is not need-based. Eligibility is not based on need or credit history.

Graduate PLUS Loan: A federal loan 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.

Parent PLUS Loan: A federal loan available to parents of dependent undergraduate students, regardless of income. Qualification is based solely on good credit. Parents may borrow up to the total education costs for the year, minus any other financial aid the student is receiving. Repayment begins 60 calendar days after the loan has fully disbursed, unless a deferment is requested.

Financial Aid Offer: The school’s official determination of a student’s federal loan and grant amounts for the award year.

Financial Need: The difference between the cost of attendance (COA) and the family’s ability to pay for school. The amount is used to determine the student’s eligibility for need-based aid.

Leave of Absence (LOA): A student can request a break from school without withdrawing by applying for a leave of absence, not exceeding six months, through Walden’s Office of Academic Advising. For federal financial aid purposes, an LOA (for course-based programs) is considered the same as a drop or withdrawal, and federal loans and grants may have to be returned to federal programs, which may result in students owing a tuition balance to Walden (see Return of Title IV Funds).

Loan Period: The period assigned to a Direct Loan is typically the same as the three-term annual award year that includes three disbursements-one for each term.

Overlapping Financial Aid: Federal regulations require schools to monitor annual award year rules when the student changes schools or programs. When a student receives financial aid at one school and then attends another school during the same annual award year, the new school must adjust the financial aid amount to ensure that a student is not offered financial aid beyond their eligibility.

Participation: Student participation is the academic engagement of a student within their academic courses. A predetermined level of participation is required to receive a federal aid disbursement. Students must continue to participate in their courses to ensure they receive the entire amount of federal financial aid that has been offered to them.

Refund: Once financial aid is disbursed to the Walden student account to pay for tuition, fees, and book advance (if any), any remaining financial aid is sent to the student as a refund.

Renewal: Financial aid is offered for another award year using the same FAFSA that was used for the prior award year.

Return of Title IV Funds (R2T4): When a recipient of Title IV grant or loan funds withdraws from an institution during a payment period, Walden University must determine the amount of Title IV grant or loan funds the student earned as of the student’s withdrawal date. The Department of Education require the Office of Financial Aid to apply a formula, entitled Return to Title IV (R2T4), to determine the percentage of federal financial aid a student has earned up through the last date of academically related activity in any or all courses or competencies during the term or payment period.

Satisfactory Academic Progress (SAP): A federal requirement to maintain a set of minimum academic progress standards in order to be eligible for federal financial aid. These standards are separate and distinct from Walden’s academic progress standards. Regardless of a student’s academic standing with Walden, if a student does not meet federal SAP standards, they could lose eligibility for financial aid.

Student Aid Index (SAI): (Effective 2024-25 FAFSA) Replaces the expected family contribution (EFC) and is an evaluation of the student’s financial resources to contribute toward their education according to the federal FAFSA results.

Unusual Enrollment History (UEH) Flag: The Department of Education added the Unusual Enrollment History (UEH) Flag to the ISIR (Institutional Student Information Record) to indicate whether students have an unusual enrollment history in regard to the receipt of Federal Pell Grant and/or Federal Direct Loan funds (not including a Direct Consolidation Loan, Perkins Loan or a Parent PLUS loan).

Verification: According to Department of Education regulations, Walden University is required to verify the accuracy of financial aid application information for selected students. The Department of Education and/or Walden University may randomly select students for verification or may select students based on predetermined criteria. Students selected for verification are required to submit additional information.

Withdrawal: This occurs when a student withdraws from a course after the add/drop period or when a student officially leaves the university. The course withdrawal is noted on the transcript, and the student will be charged tuition for the course.

Understanding Walden University's Refund Policy

Walden University's refund policy is intricately linked to federal regulations regarding financial aid. The key aspects of the refund policy revolve around the Return of Title IV Funds (R2T4) calculation, which determines how much federal financial aid a student has earned if they withdraw from their courses.

Return to Title IV (R2T4) Calculation:

When a student withdraws from Walden University, the Office of Financial Aid is required to determine the amount of Title IV grant or loan funds the student earned as of the student’s withdrawal date. The Department of Education requires the Office of Financial Aid to apply a formula, entitled Return to Title IV (R2T4), to determine the percentage of federal financial aid a student has earned up through the last date of academically related activity in any or all courses or competencies during the term or payment period.

Withdrawal and its Implications:

Course-based students who withdraw, drop, or do not otherwise complete all of the courses that they are scheduled to attend in the term, and Tempo Learning® students who withdraw officially or unofficially, may have disbursed funds returned to the federal government. For consecutive enrollment within a term, withdrawal from an earlier course with no confirmation of return in a later course.

Calculating Earned Aid:

The calculation of the percentage of federal financial aid earned includes all financial aid disbursed or that which could have been disbursed to a student. This percentage is calculated by taking the number of calendar days completed by the student in the term or payment period divided by the total number of calendar days the student is scheduled to attend in the term or payment period (scheduled breaks of 5 consecutive days or more are excluded from the calculation). The percentage is then multiplied by the amount of Title IV financial aid awarded in the payment period to determine the amount earned.

Post-Withdrawal Disbursement:

If the student did not receive all of the funds that were earned prior to their last day of participation, a post-withdrawal disbursement may be due. If the post-withdrawal disbursement includes loan funds that did not disburse, the student must give permission before the funds can be disbursed.

Timeframe for R2T4 Calculation:

Regulations require the Office of Financial Aid to complete a student’s R2T4 calculation and return Title IV funds as soon as possible but no later than 45 days after the date the university determines the student withdrew.

Withdrawal Date Discrepancy:

The withdrawal date for federal financial aid purposes is not the same as the withdrawal date processed by the Office of the Registrar to determine tuition adjustments.

Balance Due to Walden:

Federal student aid may not cover all charges due to the university that result from the return of funds upon the student’s withdrawal, and students may owe a balance to Walden. Students are responsible for payment of tuition and fees incurred after a full credit balance refund has been released. Credit balance refund distributions are made in accordance with applicable federal guidelines.

Re-entry after Withdrawal:

If a student who withdraws, officially or unofficially, from a program with courses that do not span the entire length of the quarter or semester, later participates in the same program prior to the end of the term, they will be treated as if they did not cease attendance. If a student who withdraws from a Tempo Learning® program reenters within 180 days, they are treated as if they did not cease attendance.

Understanding the Believe & Achieve Scholarship®

Walden University offers scholarships, including the Believe & Achieve Scholarship®, which provides tuition savings based on a student's program and progress.

Eligibility for the Believe & Achieve Scholarship®

All new students (domestic and international) who enroll in an eligible program are eligible and remain eligible for the Believe & Achieve Scholarship® unless they withdraw or step out for 12 months or more. Students on a leave of absence or who step out for fewer than 12 months will remain eligible. Students may also remain eligible based on other university-level policies, such as military deployment.

Loss and Reinstatement of Eligibility:

Students who were previously enrolled at Walden and return after 12 months or more will be eligible for the scholarship program as long it is in effect but will lose any previously earned tuition-free courses. If a student steps out for 12 months or more, they will be eligible for the tuition savings available at their new start date. If the Believe & Achieve Scholarship® is available at that time, any previously completed courses will not count toward the earning of future tuition-free savings.

Coordination with Federal Student Aid:

Students eligible for the Believe & Achieve Scholarship® remain eligible to apply for federal student aid programs. The student’s annual federal student aid eligibility may be reduced in terms in which their tuition is reduced.

Impact of Failing or Repeating a Course:

The Walden University Student Handbook identifies all requirements for passing or repeating a course and remains the guideline for all students. If a current student receiving the Believe & Achieve Scholarship® transfers to a different program offering the Believe & Achieve Scholarship®, they will remain eligible for the scholarship and receive the tuition savings assigned to their new program.

Transferring Programs and the Scholarship:

Transfers from course-based or Tempo Learning® undergraduate to course-based undergraduate program (except BSN): Any courses previously completed at Walden by a student transferring to a course-based undergraduate program (except BSN) will determine the number of tuition-free courses or credits the student receives at the end of their program. This applies whether the student is transferring from a course-based or Tempo Learning® program. The student would be eligible for and receive the tuition savings assigned to the new program.
Transfers from a non-BSN course-based undergraduate program to BSN: The student would be eligible for and receive the tuition savings assigned to the new program. With the Believe & Achieve Scholarship®, the student would receive the last two courses tuition-free in their BSN program.
Transfers from course-based to Tempo Learning® format: Any student transferring from a course-based format to the Tempo Learning® format will begin their program in their first paid subscription period. This counts as the first of four paid subscription periods a student must complete to receive their tuition-free subscription period.
Transfers from Tempo Learning® to Tempo Learning® format: Any student transferring from one program in the Tempo Learning® format to another program in the Tempo Learning® format will continue to earn tuition-free subscription periods; however, any previously completed periods in the prior program will not count toward the new program.
Transfers from Tempo Learning® to course-based format: The student would be eligible for and receive the tuition savings assigned to the new program. If a student transfers to a master’s or BSN program, the student will receive the identified tuition-free course for their new program. For an undergraduate program, any courses previously completed at Walden by a student in their Tempo Learning® undergraduate program will determine the number of tuition-free courses or credits the student receives at the end of their new course-based program.

Application of Tuition Savings:

Believe & Achieve Scholarship® tuition savings can only be applied to the courses or subscription periods identified in the details for each program. Students in an undergraduate program (excluding BSN and Tempo Learning®) receiving the Believe & Achieve Scholarship® will continue to earn tuition-free savings until the student has three or fewer paid courses remaining. Only then will they receive their previously earned tuition-free courses.

Financial Aid Application Process

Applying for federal financial assistance at Walden University involves a two-part process:

Completion of the Free Application for Federal Student Aid (FAFSA): Complete the FAFSA and receive notification of eligibility.
Acceptance of Financial Aid and Completion of Required Documents: Accept the financial aid offer and complete the Master Promissory Note (MPN) and entrance counseling.

This process typically takes two to four weeks from the initial application to the receipt of funds. New students are encouraged to complete the FAFSA while applying for admission. Continuing students must complete a renewal FAFSA for each award year.

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