economy
New college graduates face a tough job market. Here’s why unemployment hits them harder
Financial experts shared tips for college graduates who can't land a job and need to navigate health insurance options, student loan payments and more.
TL;DR
- Recent college graduates face a challenging job market with potentially high unemployment rates, partly due to artificial intelligence impacting entry-level roles.
- Unemployment can be particularly harsh for recent graduates who have less time to build emergency savings and often carry student loan debt.
- Young adults can typically stay on a parent's health plan until age 26, which is often the least costly option; however, this is not available for all, such as those whose parents are on Medicare.
- Medicaid or Affordable Care Act marketplace subsidies may be options for low-income graduates needing health insurance.
- Eligibility for state unemployment benefits usually requires prior earnings, which many new graduates may not have, though checking with state agencies is still advised.
- Work-study earnings do not count towards qualifying for unemployment benefits.
- State job placement services can assist new graduates in finding employment.
- Accepting employment in a different industry can be beneficial, providing income and improving future job prospects.
- Graduates with no income may qualify for SNAP benefits, but often only for a limited time if not working or exempt.
- Federal student loans typically have a grace period of six months after graduation before payments are due, with some Perkins Loans having a nine-month grace period.
- Government-paid interest applies to subsidized loans during the grace period, while interest accrues on unsubsidized loans.
- Income-driven repayment plans can cap monthly student loan payments based on income and offer eventual loan forgiveness.