Honors Economics

Loan

A sum of money provided temporary on the condition that the amount borrowed be repaid, usually with interest.

Scholarship

A type of aid primarily awarded for academic merit or for something you have accomplished that does not need to be repaid.

Grant

Student aid coming from the state or federal government, the school, or from private sources that does not need to be repaid.

Cost of attendance

Total expense of going to college which may include tuition, room and board, fees, books, and supplies, transportation, health insurance, etc. Also known as sticker price.

Wage

A set amount you are paid for every hour that you work: also called hourly pay.

Salary

Income earned for providing human resources (labor) in the market. Generally an annual amount paid monthly or bimonthly for a specified number of hours.

Microeconomics

The study of economic behavior and decision-making in small units, such as households and firms.

Macroeconomics

the study of economic behavior and decision-making in a nation’s whole economy.

Cost-benefit analysis

A decision-making process in which you compare what you will sacrifice and gain by a specific action.

Tuition

The sticker price for the academic portion of your college expenses, which does not include room and board, textbook, or other fees.

Net Price

The actual price a student pays to attend college, calculated as the sticker price minues grants and scholarships.

Sticker Price

Total expense of going to college, which may include tuition, room and board, fees, books and supplies, transportation, health insurance. Also called the cost of attendance.

ROI

Return on investment measures the effectiveness of an investment. Calculated as the net gain(gain from investment minus cost of investment)/cost of investment.

Apprenticeship

Time spent as a novice learning a trade from a combination of classroom instructions and on-the-job training under a skilled worker.

FAFSA

Free Application for Federal Student Aid. A free online application that current or prospective college students can submit each year to determine their eligibility for financial aid.

529 Plan

A college savings plan sponsored by the state or a state agency. It provides tax and financial aid benefits to pay education benefits.

Forebearance

A process that allows a borrower to pause their federal student loans payments: interest continues to accrue during this time period and may be capitalized.

Direct Subsidized Loans

Federal student loan available to undergraduates. The federal government pays interest on the loan as long as the student is in school at least part-time.

Direct Unsubsidized Loans

A student loan available to undergraduates and graduates by the federal government. The student must pay interest when they are in school.