If you've done the time and earned your degree but you still don't have a job; there's a problem. Student loans will arrive whether you're ready or not. If you graduated in May of 2009 the six month grace period is almost over and you will soon have to start making monthly payments.

One tactic that you can try is by going to the financial aid office and speaking with a counselor about deferment or forbearance. This isn't guaranteed, but it may allow you to postpone your payment if you meet specific circumstances. Even though there might be some consequences, none will be as harmful to you as late payments or defaulting.

A deferment is better because federal loans take into consideration if you're in the military, graduate school, or facing economic difficulty. If you're trying to qualify for a deferment you must earn less than $16,245 a year in the continental U.S. Plus you are eligible for public assistance like food stamps. Depending on if your deferment is based on economic hardship it's granted one year at a time but unemployment deferments are granted in six-month increments. But students can reapply for these for a total of three years each.

Deferment is a great option if you can't afford the payments. But in case you don't qualify you might be able to postpone payments if you're having health problems. This type of postponement is called a forbearance. Although in order to qualify you most likely will need to be interviewed in order to determine if forbearance is the best solution.

Even though there are these options out there if you're struggling and worried about how you're going to make your student payments remember that delaying it isn't necessarily the best thing. It's important to realize that even though you defer these payments the interest is still accruing on the loan whether you're making payments or not. So the amount will be larger when you finally start making payments. But if you do get a deferment or forbearance it's a good idea to pay the interest costs in order to minimize the financial impact later on.

If you don't qualify or choose not to get a deferment or forbearance then try picking a payment plan that reduces your monthly payment. By reducing the payments it will take longer to pay off the loan but  it may be worth it. Another option is the Income-Based Repayment Program for federal loans. The program caps monthly payments at 15 percent of your earnings. Then if the debt isn't paid off in 25 years it is forgiven. To be eligible for this program officials weigh your debt level against your income.

Even though it's a difficult time and many grads are facing student loan payments with no job, there is hope. Just remember that you want to keep your credit report as squeaky clean as possible. If that means you need a deferment or forbearance then get it but don't ignore the payments. Defaulting on your loan will cause serious problems today and throughout your life.

Since states are experiencing budget shortages in the billions, many states have decided to drastically cut college financial aid programs.  Students, who need money the most for college will have to try and find other sources of funding.

At least 12 states are reducing award sizes, eliminating grants, and more rigidly controlling eligibility guidelines.  Even though the states are cutting or winding down these programs there are a greater number of students seeking financial aid. 

Many of the programs that are being affected by these changes are need-based grants that provide money which helps students in addition to financial aid being offered by schools and the federal government.

Illinois is one state that is cutting the funding for a student award program which will affect 145,000 students.  Ohio is eliminating grants up to $2,496 for low-income students and Wisconsin has determined 20,000 low-income students will not be receiving their grants.

Without this cash for rent and groceries, some students will be forced to go into debt, transfer to cheaper schools, or drop out.  Experts are worried that because of the cuts students will take on too much debt or spend even more time working as they pursue their degree.

Since hundreds of thousands of workers are unemployed right now, many of those individuals have decided to pursue their education.  The increase in demand for financial aid and the fact there is limited funding creates a huge problem.  The U.S. Department of Education has reported that roughly 620,000 students applied for federal aid in the first quarter of this year, which is a 25 percent increase over last year.

Not only are loans a problem, but grants are too.  Thousands of students especially low-income students are missing out on their grants, because the programs have run out of money. So in order to continue or finish up their degrees, many have decided to tackle more student loans.  

Currently student loans are at an all time high on an individual basis.  Not only are these debts difficult to pay back, but the high loans could eventually cause a reduction in access to higher education and more students defaulting on their loans.

Students have a tough road ahead and will have to determine whether pursuing an education is worth it right now.  Students can pursue a degree if they wish, but they will have to work diligently not only in school but also at work.  Funding for college is going downhill and students will have to consider other ways to pay for college if they had previously been depending on financial aid.

If you have been putting off a college education because of money worries, the Obama administration has come to the rescue. The new American Recovery and Reinvestment Act of 2009 sets aside $30 billion to make schools more affordable and $40 billion for state grants. The Obama administration estimates that this money will enable more students to go to school, thus bolstering the American economy.

Students are the first to benefit from this money. The higher education tax credit was bumped up to $2,500 dollars. An additional $17 billion was designated for Pell Grants. The Federal Perkins Loan Program increased to $6 billion in loans every year. Finally, a federal-state partnership supports a $500 million grant program to improve retention and graduation rates.

"This bill alone makes it a very good time to go back to school," says Tony Balmer, an education analyst. "This administration is trying to remove any financial barriers for people wishing to go to school. But this money won’t be out there forever. People need to act soon."

Fortunately, thanks to a growing number of online education options, degree-seekers can take advantage of President Barack Obama’s stimulus bill without leaving their jobs. Sites like ClassesandCareers.com have helped nearly 500,000 degree-seekers get their stimulus money and enroll in online universities.

"We help people learn how to take advantage of this bill," says Janet Hill, an education advisor at ClassesandCareers.com. "All they have to do is visit our site and fill out the form. We guide them through the rest."

"If you have the desire to get a degree, now is the time to act on that desire," says Hill. "The money is available." Visit ClassesandCareers.com and fill out the form. An education advisor will help you get your share of the stimulus money and find the best degree program for you.