NYMC > Current Students > Office of Student Financial Planning > Glossary


Academic Year

The period during which school is in session. For example, an institution's academic year may consist of a summer, fall and spring semester.


Award Notification

An email will be sent to the student's official NYMC email account, for the student to access the TouroOne Portal to accept, reduce or decline the aid that is offered.



A legal action in which a person who is unable to meet the financial obligations is declared bankrupt by a decree of the court under the Federal Bankruptcy Law. Federal student loans, however, cannot normally be discharged through bankruptcy.



The process of adding unpaid interest to the principal balance of a loan, rather than pay the interest when it is due. If the interest is capitalized it will increase the amount of the monthly payment during the repayment period. This applies to the Unsubsidized Stafford loan and most Private loans.



A loan program that enables a borrower to combine various loans with various interest rates or various Lenders into a single loan with a more manageable repayment schedule. The repayment period is also extended.


Cost of Attendance

The Cost of Attendance (Budget) is an amount used to determine a student’s maximum financial aid eligibility for an academic year. The COA consists of standard school expenses (tuition, fees and books) and an estimate of a student's standard living expenses (housing, food, transportation, and other miscellaneous expenses). The Cost of Attendance is determined by each institution.  Financial Aid resources cannot exceed the institution’s established Cost of Attendance.



Failure to repay a loan according to the terms agreed to when the student signed a promissory note. Default also may result from failure to submit requests for deferment or cancellation on time. The consequences of default are severe. The holder of your loan will likely take action to recover the money. The holder of your loan may report you to a credit agency, your wages may be garnished, you may be liable for expenses incurred in collecting the loan. The U.S. Department of Education may ask the Internal Revenue Service to withhold your income tax refund and apply it toward the amount you owe and you will no longer be eligible to receive future Federal Financial Aid.



Postponement of repayment which must be requested by the student and formally approved by the lender. Deferments can in some cases be granted for economic hardship or further study.



The release of loan funds. In most cases loans are disbursed in two equal installments.


Expected Family Contribution (EFC)

The EFC is calculated using a needs analysis formula developed by Congressional Methodology, using information reported on the FAFSA. The figure is the total amount the student and family are expected to contribute to the student's education for the Academic Year. This figure is used to determine the student's eligibility for financial aid. The EFC is printed on the front page, top right had corner of the Institutional Student Information Record (ISIR).


FAFSA (Free Application for Federal Student Aid) or Renewal FAFSA

The application for all federal financial aid. This form, developed by Congress, has to be completed each Academic Year by the student, in order to be eligible to receive financial aid.


Federal Direct Unsubsidized Stafford Loan

Students who do not demonstrate financial need may obtain the loan on an unsubsidized basis. The Federal Direct Unsubsidized Stafford loan start accumulating interest from the day the money is disbursed. The interest may be capitalized as long as the student is attending school at least half time.


Federal Direct Graduate PLUS Loan

Approval of the Federal Direct Graduate PLUS, is based on the determination that the student does not have an adverse credit history. Students may borrow up to the cost of attendance, minus any other financial aid received for the year.


Federal School Code

New York Medical College's School code is G02784. This code must be included when completing a FAFSA.


Financial Need

The difference between the Cost of Attendance and the Estimated Family Contribution.



An arrangement whereby the lender may permit the temporary cessation of payments (principal and/or interest), or allow an extension of time for making payments, or accepting smaller payments than were previously scheduled. During forbearance interest will accrue.


Grace Period

The period between the time a borrower leaves school, or if in school, drops below half-time and the time they are obligated to begin repaying their loans. Repayment of principal plus interest begins after the student discontinues attending school-usually six or nine months depending on the type of loan.



Type of award that does not need to be repaid. The award is usually based on merit and/or need.



A fee charged to the student for the use of the money they borrow from the Department of Education.


Institutional Student Information Record (ISIR)

The name for the electronic version of SARs delivered to schools by the FAFSA processors.



Type of Financial Aid which must be repaid, with interest.


Master Promissory Note (MPN)

A promissory note is the legal agreement a student signs with a lender accepting student loan funds. The MPN states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations. The MPN is a simplified method of applying for and receiving Federal Loan funds.


Need-Based Financial Aid

Financial aid that relies upon financial need as the criteria for eligibility. Need is determined by subtracting the Expected Family Contribution, via the FAFSA, from the institution's established Cost of Attendance.


Non Need-Based Financial Aid

Financial aid that does not require financial need as a criteria for eligibility.


Origination Fee

A fee charged, by the US Department of Education, for the administration of student loans. This fee is deducted from the loan prior to disbursement. Origination fees are charged as the loan is disbursed and are subject to change as per federal regulations.



The Student FSA ID, serves as your identifier to let you access your personal information in various U.S. Department of Education systems.



The amount of money borrowed, excluding interest.


Repayment Schedule

Discloses the borrower's total repayment obligations: monthly payment, interest rate, due dates and length of time for repaying the loan.


Satisfactory Academic Progress

The academic progress standards are established by the Institution and are required by the Federal Government. Students must meet these standards each year in order to receive financial aid funds.



A random Federal review process established to confirm the accuracy of data previously submitted by the student to the Office of Student Financial Planning. The Office of Student Financial Planning will send the required form to those students who are selected for Verification.