. Single borrowers who earn less than $ 16,245 -- the poverty level -- would not be required to make any payments on their federal loans as long as their income remained that low . Payments would be significantly lower under the income-based plan , but loans would take longer than the standard 10 years to repay . That could increase overall interest costs for borrowers . Proponents argue that for some it is well worth the tradeoff by making lower-paying jobs more appealing . `` Just imagine all those people that went to college and had expectations of a good job market and now it 's not so hot , '' said Deputy Undersecretary Bob Shireman of the U.S. Department of Education . `` This provides a kind of safety net , helps give them some assurance that they 'll be OK , and that they 'll even be OK if they go into lower paying jobs . '' For students who eyed public service as a career but thought the salary underwhelming , a loan forgiveness option for public sector workers might inspire some . Borrowers who work for 10 years in a public service job , such
WASHINGTON -LRB- CNN -RRB- -- Colleges are n't getting any cheaper , but federal student loans are . Students who graduate with college loan debt can use a repayment plan that will give lower monthly payments . Millions of borrowers will get a better deal on their student loans based on federal rules that went into effect Wednesday . Lower interest rates and loan forgiveness in some cases are some of the rules that will make borrowing cheaper for many students . Also among the rules : an income-based repayment program that considers income and family size . The program allows borrowers to set their monthly loan payment at 15 percent of their annual adjusted gross income . Under the traditional 10-year plan , a borrower who graduated with $ 25,000 in student loan debt and whose income is $ 30,000 a year would pay $ 288 a month at an interest rate of 6.8 percent , according to the the Department of Education 's Web site . Now , the student could opt for payments of $ 172 a month spread over a longer time . Borrowers can apply the plan to their remaining loan amount as of Wednesday