Earlier quoted context omitted.
(Spoiler?) I think it's called "above the line" "below the line" because the characters in each of the accepted words don't travel below the "character placement line" that runs along the bottom of every word. I've forgotten the "real name" for this line. Thus, toothpaste -> below the line, because of "p" tooth -> above the line, no characters pass below it. Generally, if the word contains a y,p,q,g, or j, then it's…
This is the right answer! I think it was made harder in the camp due to "above the line" and "below the line" already having semantic meaning in the context of the camp, most kids didn't expect that to literally be the answer.
I'll likely use it to mystify kids someday soon.