If you know a high school or college graduate, you probably wondered what to give that person to celebrate his or her achievement. I'll give you a few clues below, as I'm about to end my tenure as a professional student in June and I want everyone to know what goodies that I'd prefer. However, I do realize that some budgets might be tight, and that some ideas are out of the question (like that tropical island villa). The ideas below, therefore, are both ingenious and practical. Additionally, at the end of the article I'll tell grads and parents what I discovered about federal direct school loans - it's all good:

Airline Miles: If you've accumulated some airline miles and you're worried - with all the airline shuffling and strife - that the miles might become worthless or that they might expire before you have a chance to use them, just give them to that grad student. The graduate can be a relative or a friend, it doesn't matter. However, I would suggest that you have some idea about when and where the grad wants to travel. Be prepared, also, to spend a few dollars to pay for the transaction.

For instance, I received two tickets for a round-trip to London this summer through a friend's extra miles. The cost for this transaction? A mere $200. The only problem? Your recipient might not have a choice about what time of day that the flight arrives or departs. However, this isn't a complaint, trust me. Other than this little snafu, the boarding procedures are exactly the same as a regular ticket. Be sure that the grad has a passport before you make plans, as the passport may take a month or more to process. Some countries also require visas. See your travel agent. Also, you might check to see how far your airline miles will go before you offer the gift.

Digital Camera: Don't go less than 4-6 pixel resolution, otherwise the photo quality and price won't be worth the effort. A few people might chip in on the purchase, so this is a great office/family gift. Why is a digital camera a good idea? Because, trust me, the grad might not want a gift that reminds them about school or work. A digital camera, therefore, is one gift that may last for years, and the grad won't need to purchase film or development processes. It's a great idea for that grad who will visit London (hint, hint).

Gift Certificates: If you live somewhere far, far away and can't attend the ceremony, think about a gift certificate. However, make sure that the certificate is useful to the grad. For instance, a high school student might think fondly about you for the rest of his life if you give him a gift card for gas purchases (if he has a car). An older student might prefer money toward a larger purchase, such as computer equipment. If you're unsure about which company to choose, send a money order instead. That way the student isn't confined to a certain store or purchase. The money, trust me, will be put to use, even if it's just for a splurge. Graduates need splurges.

BUYandHOLD Account: You knew I'd get to this, didn't you? While students often don't want to think about tackling the job market just yet, a gift with a future might inspire them to strive for more. Once again, this might be a group gift. Pool resources, and offer the grad funds to begin their investment future. Or, if the grad already maintains a portfolio, give them the gift and earmark it especially for investments.

Network for the Grad: The grad may not want to think about work, because they may fear the job market. If you're an executive, a great gift might entail networking to help place the grad in a promising interview. As with any other networking, you must believe in the candidate and hope for the best. Or, you might offer to pay for a professional resume or for interview seminars.

Now for the good financial news: Every college grad who borrowed money to attend school knows by now that a financial "exit interview" must be conducted before the grad can officially leave campus. During my exit interview (which was conducted online), I discovered interesting news about federal loan discharges.

About a year ago, I mentioned that school loans are often passed on to a graduate's children if the graduate dies before school loans are repaid. In fact, I suggested that a term life policy would help with repayments if a disaster occurred. While I won't back off that last advice, the FSA (Federal Student Aid) report in my exit interview stated the following:

"Discharge: the release of borrowers from their obligations to repay their DIRECT LOANS. Borrowers must meet certain requirements to be eligible for discharge; if the borrower dies, or becomes totally and permanently disabled, or in certain cases if the borrower files for bankruptcy, or the school either closes or falsely certified a student's loan."

Several caveats apply to the above statement. Bankruptcy, first, will become more difficult to file in the future. And, the judge must decide whether the filer is eligible to squeeze out of a school loan. The best news, though, is that direct loans might be discharged upon a student's death. This does not mean that the student can act like he or she is dead and refuse to make payments (that action would hurt credit ratings, and may even end in a jail sentence). However, it does mean that there's hope for kids who have older parents who want to attend school again.

In the meantime, I hope that all the grads out there enjoy their last few days of school, all the parties, and the well-wishes and gifts. As you and I both know, graduation is one of those once-in-a-lifetime events, and I salute you for your efforts.

Until next week,
Linda Goin