Borrowers Archives - The Pennsylvania Daily Star

Cloud Hangs over Commercial Real Estate as Trillions in Debt Set to Come Due

January 21, 2024 Pennsylvania Daily Star Staff

Commercial real estate is facing a mountain of debt that many borrowers could have trouble refinancing due to a rapid hike in interest rates and record vacancies, according to The Wall Street Journal.

Around $2.81 trillion in commercial real estate loans are set to expire through 2028, meaning borrowers would either have to pay the amount outright or refinance the debt with higher interest rates, according to data from market research group Trepp. Payments on commercial mortgages are typically only for interest while the loan is active, and when the loan reaches its expiration date, borrowers often refinance at current rates, but doing so would increase payments drastically in a time when commercial developers and property owners are strapped for cash, according to the WSJ.

Biden Announces Fresh Wave of Student Debt Cancellations

January 13, 2024 Pennsylvania Daily Star Staff

President Joe Biden on Friday announced the latest round of student debt cancellations in a statement issued by The White House.

Since the Supreme Court’s ruling on June 30 in Biden v. Nebraska that the administration’s plan to cancel up to $10,000 in student debt for all borrowers was unlawful, the administration has sought to pursue other debt cancellation measures, most notably through the Saving on a Valuable Education (SAVE) plan, which was finalized by the Department of Education (DOE) on the day of the court’s ruling. Biden said that borrowers enrolled in the SAVE plan who borrowed less than $12,000 in debt, and who have been in repayment for at least ten years, will have their balances canceled by February.

Pennsylvania Borrowers to Receive $70 Million in Settlement With Navient

January 18, 2022January 17, 2022 The Center Square

Pennsylvania student loan borrowers will receive over $70 million in relief as part of a national settlement with Navient, one of the nation’s largest student loan servicers.

Attorney General Josh Shapiro said Navient will provide $1.85 billion to resolve allegations of unfair, deceptive, and abusive loan servicing practices dating back more than a decade.

“Navient repeatedly and deliberately put profits ahead of its borrowers – it engaged in deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education,” Shaprio said in a statement.