Tag: borrowers

Student Loan Rates to Reach 16-Year High

South Carolina Sun Staff
College Graduation

As borrowing costs for student loans are already at unseen levels, rates are expected to rise even higher in the coming months to a high not seen in 16 years.

According to ABC News, the current interest rate on a federal undergraduate student loan, which is 5.5%, is expected to rise to 6.5% in July. This would mark the highest level since 2008. The borrowing rate for student loans is determined as a result of adding a fixed amount of 2.05% to the yield on the 10-year Treasury bond, which is set every May at an annual auction. On Wednesday, the 2024 auction saw 10-year Treasury bonds sold at a yield of 4.48%.

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

South Carolina Sun Staff
Commercial Real Estate

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.

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Biden Announces Fresh Wave of Student Debt Cancellations

South Carolina Sun 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.

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