Unit 6 - Higher Education & Income

A tax structure where lower income earners pay a higher percentage of their earnings. Example: Sales tax

• Unsubsidized Loan

• Excise tax

• Regressive tax structure

• Progressive tax structure

• FAFSA

A free application for federal student aid that is used to apply for aid and loans including the stafford and perkins loans, federal work-study, and federal grants.

• Unsubsidized Loan

• Excise tax

• Regressive tax structure

• Progressive tax structure

• FAFSA

A tax structure where higher income earners pay a higher percentage of their earnings. Example: US Income Tax

• Unsubsidized Loan

• Excise tax

• Regressive tax structure

• Progressive tax structure

• FAFSA

Interest begins accruing for this type of student loan as soon as the loan is taken out.

• Unsubsidized Loan

• Excise tax

• Regressive tax structure

• Progressive tax structure

• FAFSA

Taxes added to the cost of an item in an effort to change a behavior. Also referred to as a "sin tax”.

• Unsubsidized Loan

• Excise tax

• Regressive tax structure

• Progressive tax structure

• FAFSA

Money earned from working such as wages, salaries and tips.

• Earned income

• Subsidized loan

• Deferment

• Unearned income

• FICA

An educational loan that does not require you to pay interest while enrolled full time in school.

• Earned income

• Subsidized loan

• Deferment

• Unearned income

• FICA

A temporary suspension of monthly student loan payments. You must apply and meet certain qualifications to be approved.

• Earned income

• Subsidized loan

• Deferment

• Unearned income

• FICA

This includes social security and medicare and is withheld from your earned income by your employer through payroll tax.

• Earned income

• Subsidized loan

• Deferment

• Unearned income

• FICA

Money earned from investments rather than from work.

• Earned income

• Subsidized loan

• Deferment

• Unearned income

• FICA