IDR plans hold sway with new grads.

• Position: Student Loans - Income-driven repayment - Brief article

One-third of Federal student loan borrowers taking advantage of programs that tie monthly payments to their salaries are not sure how long they will remain In the plans, while another one-third expect to stay in them until their loans are paid off, according to a survey of Navient-serviced borrowers.

A smaller share of borrowers (19%) expect to use an income-driven repayment (IDR) plan for five years or less. Overall, more than half say they expect to make higher payments later as their Income Increases.

"IDR plans serve as effective options for Federal student loan borrowers who need increased financial flexibility as they establish a career or undergo a transition," says Jeff Whorley, group president of asset management and servicing at Navient, Wilmington, Del., a Sallie Mae (SLM Corporation) spinoff that is a loan management, servicing...