In the past, federal-loan repayment was structured so that a graduate would have to pay a certain amount of money each month, regardless of his or her income at the time. Under the new Income Based Repayment program, if you lose your job or are forced to take a pay cut, the amount you have to pay back per month will drop. If, however, your salary subsequently increases, your payments will still be capped at 15% of your disposable income. That is, of course, if you are eligible to participate in the program; grads with private loans are exempted as well as those who owe less than they earn in a year.  Click onto to the following link to see if you qualify for the Income Based Repayment program. http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRCalc.jsp