The federal Department of Education announced some good news for students who take out student loans. Their new income-based repayment option limits the size of a borrower's payments to a percentage of their income. Given the current economic woes and the rough job market facing graduates, this new program helps borrowers deal with difficult financial circumstances that might come their way. In addition, after borrowers make payments for 25 years, their balance is forgiven.

We've been advocating for programs like this one that reduce student debt and make repayment easier for borrowers. Borrowers can visit the Education Department website to see if they qualify for income-based repayment.

You can also read more about this issue in yesterday's New York Times story, which quotes the director of our Higher Education Project, Christine Lindstrom.