He said the idea of basing repayment on a student`s income should play a bigger role in organizing the federal student loan system — an idea that has received support from both liberal and conservative political thinkers. Studies show that income-based reimbursements make students` career outcomes more efficient by making the job search process less expensive.   If you compare ISAs to student loans, you may find that federal loans are better for your wallet, especially if you`re embarking on a career with high income potential. The average current interest rate on a federal license loan is 2.75% (4.3% for graduated loans). Federal loans are also granted with borrower protection, such as optional credit and the option to opt for income-oriented repayment plans or loan programs. . . . .