Student loan borrowers who can’t afford a down payment on a home or car could get a hefty raise on their next installment.

The Department of Education said Thursday that the amount of income-based repayment, which is an alternative to the standard, will go up to $8,500 from $6,750 starting Jan. 1.

That will be a 6.25 percent increase for those who took out a federal loan.

The average monthly income for these borrowers is $45,843, and the average monthly cost of a mortgage is $2,087, the department said.

The move is intended to reduce the burden on families and students, the agency said.

That’s because borrowers with more than one loan, as well as those who have student loan debt, will now have more flexibility in how they repay.

The increase also reduces the annual interest rate on the federal student loans, which are about 2.8 percent.

The change also affects some older borrowers who have less than $60,000 in debt, the government said.

The Department of Labor will continue to provide guidance on the loan modifications, the school says.

If you or someone you know needs help, call the National Student Loan Counseling Hotline at 1-800-433-2442.