About two-thirds of this year's crop of college graduates will be leaving their campuses with student debt.
This is not good news for the grads, who face an unwelcoming job market. The unemployment rate for new college graduates is higher than the general population. And by one estimate, 40% of young college grads, who are employed, possess jobs that don't require a degree.
Making Student Debt More AffordableEssentially, IBR allows qualified borrowers to repay based on what they can afford rather than what they owe.
As you can see from the chart below, a person earning $15,000 or less would make no payments no matter how much student debt he or she had racked up. Someone earning $30,000 would owe $172 a month.
Only debtors with federal student loans, not private ones, can qualify for IBR.
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IBR image by Jason Bache. CC 2.0.