It has been a while since I have played HD.  Played it a ton back in the day but took some time off.

I cant remember, but what is the penalty for having walkons?
On my Juniata team in Phelan recruiting is almost up and I have 1 roster spot open.  Thinking of leaving it open to help me balance my classes.  I currently only have 1 senior, so that would give me 2 in the class if I leave it open.

Is there a penalty for having 1 walkon?  I think back in the day I remember them saying there was a penalty for 2 or something but I cant remember for sure.

Zero problems or penalties with one, if you have 3+ you might get a slight penalty, but 1 or 2 should have zero impact

No penalty for 1, however you do lose all carryover money because all schly's are not filled.

I remember losing carryover money.  I ended up filling the schollie anyways.  Took a chance on an international late, looks like he may be decent in time.

Lose any cash you have to carry over, but other then that no.

Another thing to consider is that having three walk-ons or more should cause your schollie players to get much more playing time which should boost their improvement more than it normally would.  I wouldn't sweat having three walk-ons unless I was running a FCP.  In that case, the lack of depth would probably kill you. 

You can even get away with a nine man roster running M2M with good enough staminas and managing your depth chart correctly.  I actually managed to win two titles at d1 with nine schollie players running M2M.  I wouldn't recommend it, but it IS possible to succeed under those circumstances.  Just difficult.