On July 1, 2009 IBR (Income Based Repayment) officially became available. “In addition to lowering monthly student loan payments, Income-Based Repayment forgives any remaining debt — including interest — after 25 years of payments. Most borrowers will pay off their debt before then, but under current law, if there’s anything left after 25 years, the amount forgiven would be taxed as income to the borrower. ” Here’s the link: http://www.ombudsman.ed.gov.