The basic student loans is created to help poor and normal or 
brilliant students pay for  books,tution,health and also for living expenses. Reason this  student loans now are frequently subsidized by any country government, interest rates tend to be lower than any other type loans such as credit cards and the repayment schedule may be flexible. In the America and in few  other countries, the student loans are very difficult to discharge in bankrupt reason of fears oflot’s of  "abuse" of the system by graduates with high future income and many  assets to lose. Concerns about abuse have generally been rejected by most bankruptcy scholars, who view these claims The Income-Based Repayment plan is an alternative to paying back the student loans, which system allow the general borrower to pay back the granted loan based on how much students [she/he] makes, and not based how much money is actually owed.However, most income based repayment does not apply to private loans

IBR plans generally cap loan payments at ten percent of any of the student borrower's income. The lone Interest accrues and the balance continues to build. Now However, after a many number of years, the accurate balance of the loan is forgiven. In This period is just ten years if the general student borrower works in the any public sector (government or a nonprofit) and twenty five years if the student such works at amuch for-profit. Debt unforgiveness is treated as taxable income. IBR plans on the grounds that they create moral hazard and much suffer from adverse selection. That is, IBR may encourage general student often borrowers who could have obtained high-wage jobs to take low wage jobs with good benefits and minimal work hours to reduce their loan payments, therefore they driving up the cost of the IBR loan program. And, if the IBR loan programs are optional, only the students who are expect to have low wages will opt into this program. Historically, a number of IBR programs have collapsed because of these problems between Federal student loan interest rates are established by Congress and listed in § 20 U.S.C. § 1087E(b). Real reason the interest rates are established by Congress, interest rates are a grand political order. The federal student loans  currently runs a multibillion dollar "negative subsidy", or profit, for the federal government. Few scholars have been suggested that federal student loan interest rates should be tailored to the particular courses of student study and reflect the harm

riskiness of those different courses of student study. They  also have suggested that the loan program should be run at simple cost, or below cost, for because of the benefits and educated workforce provides to society--lower burdens on , lower health costs, public services higher tax and wages revenues, lower unemployment.
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