New college graduates face a tough job market: Money moves to help
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“For young people at the beginning of their careers, unemployment can be especially severe,” said Michele Evermore, a senior fellow at the National Academy of Social Insurance, a nonprofit organization focused on the nation’s safety net. “They have had less time to put together a reasonable amount of emergency savings and are much more likely to carry college debt.”
Staying on parents’ health plan is ‘least-cost’ option
Many college graduates have some time before determining their own health insurance coverage. Young adults can often stay on their parents’ private plan until age 26, said Joel Cantor, a professor at Rutgers University and founding director of the Center for State Health Policy. some states even allow dependents to stay longer than that.
“This will generally be the least costly option,” Cantor said.
However, not all new graduates will have this option. For example, Medicare doesn’t allow you to cover dependents, so if your parents are insured under the program, you’ll need to find your own insurance, Cantor said.
Unemployment can be particularly severe for young people at the beginning of their careers.
Michele Evermore
senior fellow at the National Academy of Social Security
“Low-income students can benefit” medical help,” Cantor said, “this is comprehensive coverage and generally has no premium.”
Students who have no other options can also look for coverage on the Affordable Care Act marketplace. “Depending on their income, they may qualify [for] subsidies,” Cantor said.
Keep in mind: Most college health insurance plans end with graduation or shortly after the semester ends, said Lisa Bercu, senior director of health policy for the National Consumers Union, an advocacy group.
“Some colleges provide insurance as a temporary bridge for 30 to 90 days after graduation, but they are not a substitute for long-term insurance,” Bercu said. he said.
Unemployment benefits may not be an option
Some new graduates will have business backgrounds, Evermore said. In fact, about 40% of full-time undergraduates work full-time, with 10% working full-time, higher education expert Mark Kantrowitz said.
“People don’t have to have worked full time to qualify,” Evermore said. “They need to reach an earnings qualification, which is generally not very high.”
Unfortunately, he added, any work work that is part of your financial aid package does not count as qualifying earnings.
Check out government job placement services
Even if you don’t qualify for unemployment benefits, you can still access your state’s benefits. job placement assistance servicessaid Evermore.
“That’s actually how I got my first temporary job after graduating from college,” he said.
When trying to find a job in your preferred field, it’s a good idea to accept some type of employment, even if it’s in a different industry, said Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida.
“You get some money at the door,” said McClanahan, a member of CNBC’s Council of Financial Advisors. He also said, “It’s easier to find a job when you have a job because employers don’t like to see a long history of unemployment, and it shows that you’re motivated.”
Food aid may be available
It’s worth checking to see if you qualify for benefits under the Supplemental Nutrition Assistance Program, or SNAP, said Dottie Rosenbaum, a senior fellow and director of federal SNAP policy at the Center on Budget and Policy Priorities, a left-leaning think tank.
“Most recent graduates who have no income may qualify for just under $300 a month in SNAP if they live alone or with others and buy and prepare food separately,” Rosenbaum said. he said.
But most young people will only be eligible for three months’ help unless they are working at least part-time or are exempt due to a physical condition, he added.
If you live with your parents, you’ll need to apply for benefits as a household, and your parents’ income will also count, “unless, again, they purchase and prepare food separately,” Rosenbaum said.
Watch out for student loan grace periods
In most cases, you won’t have to make your first student loan payment until six months after graduation, thanks to the federal government. grace periodsaid Kantrowitz. Those with a Federal Perkins Loan can receive: up to nine monthshe added.
If your loans are subsidized, the government will pay the interest on your loans during this period, Kantrowitz said. Meanwhile, interest will accrue on unsubsidized loans.
The federal government has many options for borrowers who are worried about paying their bills during that time. His income-based repayment or IDR plans Limit your monthly payment to a portion of your discretionary income and result in student loan forgiveness. Some borrowers may pay $0 or $10 per month and begin moving toward loan cancellation.
Borrowers who need to extend their grace periods may seek deferrals and forbearance, including: unemployed – but interest may continue to accrue. According to Kantrowitz, 160,000 student loan borrowers signed up for unemployment deferrals in the first quarter of 2026.
