November is doomsday for many of May’s college graduates: It’s time to make the first payment on their student loans.

But the tough job market the grads entered has many of them asking for deferments, and some may have to default.

Student loan default rates are up, and about 250,000 people who were supposed to start paying their student loans in 2007 still are not. No big deal, right? Wrong!

When people do go into default, their loans are turned over to collection agencies, their wages can be garnished, the government can withhold Social Security benefits, and their credit is tarnished.

Luckily, a new federal law may ease the pain of repayment by helping some make it through this tough time.

If graduates can prove that they are hardship cases, they can defer loan payments for up to three years. And since Congress passed the Income-Based Repayment Plan this summer, borrowers now can sign up for a program that will limit their payment to 15 percent of their incomes.

If you’re in college or applying to school, FinAid.org, a website devoted to helping students find ways to pay for college, has a rule of thumb: Students should not borrow any more than they expect to earn right after they graduate. That's about $45,000 for the average graduate with a bachelor's degree. Impossible? Nope! Check out our tips on applying for scholarships and financial aid.

Looking for a job in this dismal economy? Improve your chances by with our resume and interview tips.

Strapped for cash? Learn how to tighten your budget and improve your credit score.