New graduates face tough job market: funding moves to help

“Unemployment can be especially tough for young people in the early stages of their careers,” said Michelle Evermore, a senior fellow at the National Academy of Social Insurance, a nonprofit organization focused on the nation’s safety net. “They have less time to scrape together a decent amount of emergency savings and are much more likely to have college debt.”

Many college graduates have some time to decide on their health insurance coverage. Joel Canter, a professor at Rutgers University and founding director of the Center for State Health Policy, said young people can typically stay on their parents’ individual plans until age 26. Some states allow dependents to stay longer than that.

“This is generally going to be the lowest cost option,” Kanter said.

However, this option is not available to all new graduates. For example, Medicare doesn’t allow coverage for dependents, so if your parents have insurance through the program, you’ll have to find insurance on your own, Kanter said.

“Low-income students may be eligible for Medicaid, which is comprehensive coverage and typically has no premiums,” Kanter said.

Students who have no other options can also look for coverage on the Affordable Care Act Marketplace. “Depending on their income, they may be eligible for subsidies,” Kanter said.

Keep in mind: Most college health insurance plans end upon graduation or shortly after the end of the semester, said Lisa Belk, senior director of health policy at the Consumer Federation of America, an advocacy group.

“Some universities offer coverage for 30 to 90 days after graduation as a temporary bridge, but it is not a substitute for long-term coverage,” Berg said.

To qualify for state unemployment benefits, you typically need to have four quarters of your income remaining, but of course, many new college graduates don’t meet this requirement, Evermore said. Still, she said, “I tell people, whether they think they’re eligible or not, they should check with their state unemployment office just to be sure.”

Evermore said some of the new graduates have work experience. In fact, about 40% of full-time undergraduates work, and 10% of them work full-time, said higher education expert Mark Kantrowitz.

“You don’t necessarily have to work full time to qualify,” Evermore said. “They have to meet income qualifications, which are generally not very high.”

Unfortunately, work study as part of a financial aid package does not count as qualifying income, she added.

Evermore said even if you don’t qualify for unemployment benefits, you may be able to take advantage of the state’s employment services.

“This is actually how I got my first temporary job right out of college,” she said.

Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Fla., says that while you’re trying to find a job in your field of choice, it’s a good idea to accept some form of employment, even if it’s in a different industry.

“Money is on the way,” said McClanahan, a member of CNBC’s Financial Advisory Council. Additionally, she said, “Employers don’t like to see long unemployment histories, so it’s easier to find a job when one is available. And it shows you’re motivated.”

Dottie Rosenbaum, senior fellow and federal SNAP policy director at the Center on Budget and Policy Priorities, a left-leaning think tank, said it’s worth checking whether you qualify for benefits under the Supplemental Nutrition Assistance Program (SNAP).

“Most new graduates with no income, who live alone or with others, can qualify for just under $300 a month in SNAP if they buy and prepare their food separately,” Rosenbaum said.

However, it added that most young people are only eligible for three months’ benefits if they are not working at least part-time or are exempt due to a physical illness.

If you live with your parents, you must apply for benefits as a household, and their income will be taken into account “again, unless you buy or prepare food separately,” Rosenbaum said.

In most cases, you likely won’t have to make your first student loan payment until six months after graduation, Kantrowitz said, thanks to the federal government’s grace period. People with federal Perkins loans can get up to nine months of financing, he added.

If the loan is subsidized, the government will pay the interest on the loan for that period, Kantrowitz said. On the other hand, unsubsidized loans accrue interest.

The federal government has a number of options available to borrowers who are concerned about their ability to pay at that time. An income-driven repayment (IDR) plan limits your monthly payments to a portion of your discretionary income, ultimately resulting in student loan forgiveness. Some borrowers end up with monthly payments of $0 or $10 and are on the path to loan cancellation.

Borrowers who need an extension to their forbearance period can request a forbearance or forbearance, including for those who are unemployed, but interest may continue to accrue. Kantrowitz said 160,000 student loan borrowers were eligible for unemployment deferral in the first quarter of 2026.