Geeky Insight:

CommonBond Review: Private Student Loans and Student Loan Refinancing

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Written By: DollarGeek

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Are you thinking about taking out a private student loan or refinancing your student loans? Commonbond has been a popular choice for many students and there are many reasons why. Commonbond was founded in 2012 and has funded more than $2 billion in student loans. The company offers competitive rates, repayment flexibility and great customer support. Check out DollarGeek’s review on Commonbond’s student loan refinancing and private student loans.

Quick Summary:

CommonBond offers borrowers flexible repayment terms, low rates and forbearance if you're ever facing economic hardship. You also get access to a "money mentor" that can give you customized guidance. CommonBond will also let you check your rate without hurting your credit score.

Student Loan Refinancing:

5/5

(5/5)

Private Student Loan:

4.7/5

(4.8/5)

Good for:

  • Low interest rates
  • Multiple student loan repayment plans
  • Refinancing Parent PLUS student loans in your child's name

Bad for:

  • Not available to borrowers in Mississippi and Nevada.
  • Student loan borrowers without a co-signer.
  • Must enroll in autopay to get best interest rates

Getting started with CommonBond

It’s no secret that getting a lower interest rate on your student loans is one of the best ways to save money. 

DollarGeek’s review on Commonbond can help you figure out which of their products is best for you. You can choose from student loan refinancing or private student loans. 

CommonBond is best for borrowers that want a low rate and have a great credit score. If you’re looking to refinance your federal student loans with a private lender like Commonbond, keep in mind that you’ll lose access to government repayment programs. CommonBond does offer up to 24 months of forbearance over the life of your loan if you’re ever facing economic hardship.

Which CommonBond product do you want to learn about?

CommonBond: Student Loan Refinancing Review

Best if

  • You want a personalized rate estimate with a soft credit check (won’t hurt your credit score).
  • You’re looking for flexible repayment terms.
  • You want to take over your Parent PLUS Loan(s) in your parents’ name.
  • You’re an immigrant with a work visa.

CommonBond is best for borrowers that want a low rate, have a credit score of at least 680, and a bachelor’s degree or higher.

If you’re looking to refinance your federal student loans with a private lender like Commonbond, keep in mind that you’ll lose access to government repayment programs.

Aside from it’s competitive interest rates, CommonBond offers borrowers up to 24 months of forbearance over the life of your loan. This is a great perk to have in your back pocket if you’re ever facing economic hardship.

Check out some important details on refinancing your student loan with Commonbond below.

Geeky Insight

Commonbond - Student Loan Refinancing

Loan amounts

$5,000 - $500,000

Loan terms

5, 7, 10, 15, or 20 years

Fixed rate

3.19% - 6.43%*

Variable rate

3.18% - 6.07%*

Hybrid rate

4.45% - 6.10%*

Loans that qualify

Federal, private and previously consolidated loans. Borrowers can refinance PLUS loans taken out by their parents

Discounts

0.25% autopay discount

Income

Sufficient to show ability to repay loan

Education

Minimum of a bachelor's degree from one of over 2,000 Title IV accredited schools

Citizenship/Residency

U.S. citizen, permanent residents, or H1-B, J-1, L-1, E-2, E-3 visa holder

Cosigner release

Yes, after two years of on-time payments

Origination fees

None

Application fee

None

Prepayment fee

None

Late fees

5% of the unpaid amount of the payment due or $10, whichever is less

*auto-pay discount is included on rates

CommonBond's interest rates and repayment terms

When you’re refinancing your student loan, you want the utmost flexibility. Typically, you want a low interest rate and flexible repayment terms. 

Repayment terms are always something to be aware of. Your repayment term will directly affect your monthly payment. For example, if you have a repayment term of 7 years, you will have a lower monthly payment compared to if you had the same loan with a 2 year repayment term. This is because the longer the repayment term – the more time it takes to pay off your loan and the more interest you’ll pay.

If a lender can offer you a range of repayment terms it gives you options and flexibility. Commonbond shines in this area because they offer repayment terms of 5, 7, 10, 15, or even 20 years. These repayment terms apply for both variable rate and fixed rate loans. CommonBond’s flexible payment terms can help you find a monthly payment that fits your budget. 

Types of rates CommonBond offers:

  • Fixed Rate
  • Variable Rate
  • Hybrid
Loan terms that CommonBond offers:
  • 5, 7, 10, 15 or 20 years

Fixed rate

3.19% - 6.43%*

Variable rate

3.18% - 6.07%*

Hybrid rate

4.45% - 6.10%*

Loan terms

5, 7, 10, 15, or 20 years

*auto-pay discount is included on rates

CommonBond hybrid loan

CommonBond offers a hybrid loan that offers a 10-year repayment period. This loan is a combination of fixed and variable rates. The hybrid loan has a fixed interest rate for the first five years, and a variable rate for the last five years. 

The hybrid loan takes away some of the uncertainty that comes with variable-rate loans but could help you get a lower interest rate than a typical fixed-rate loan.

Types of student loans you can refinance with CommonBond

When you refinance your student loans with CommonBond you will combine your loans into a single loan with one monthly payment. 

You will be able to refinance your private loans, your federal loans, or both. These can include any of the following:

  • Undergraduate
  • Graduate
  • MBA
  • Law school
  • Dental school
  • Medical school

Also, if your parents took out a PLUS loan to help pay for your education, you can take over the loan by refinancing it in your name.

Eligibility requirements

To be eligible to refinance with CommonBond you must have good to excellent credit (660+), be a U.S. citizen or legal resident with a bachelor’s degree from an approved school to refinance your student loan debt with Commonbond.

Refinancing for U.S. immigrants

In 2018, Commonbond expanded its student loan refinancing platform to U.S. immigrants with work visas.

Immigrants must have graduated from a nonprofit U.S. undergraduate or graduate school to qualify. They must also hold one of the following types of visas:  H1-B, J-1, L-1, E-2, and E-3.

How to get started refinancing your student loan with CommonBond

CommonBond makes it easy to explore your refinance options in just a few minutes online with no commitments, no documents, and no impact to your credit score.

Get your new rate in just minutes on company’s website here.

If you choose to continue with the loan you’ll have to upload the necessary documents and sign electronic loan documents. Once CommonBond approves your loan they will arrange for your existing loans to be paid off.

If you can’t be automatically verified you might get asked to provide a few things such as proof of employment, loan statements for each loan you’d like to refinance, and proof of residency (ex: utility bill, bank statement, etc.)

CommonBond: Private Student Loans Review

Best FOR

  • Offering personalized rate estimates with a soft credit check (won’t hurt your credit score).
  • Those who have hit their limits on the most affordable federal student loans.
  • Those who have a cosigner.
  • Offering a variety of in-school repayment options

In addition to student loan refinancing, CommonBond also offers private loans for undergraduate students, graduate students and MBA programs. The rates and terms are very competitive — check out some of the major details below.

Geeky Insight

Commonbond - Private Student Loan

Loan amounts

Up to 100% of your school's cost of attendance

Loan terms

5, 10, and 15 years

Variable rate

1.44% - 7.42%*

Fixed rate

5.45% - 9.74%*

Discounts

0.25% autopay discount

Citizenship/Residency

Must be U.S. citizen or permanent resident

Enrollment

Undergraduate, graduate and MBA program students who are currently enrolled at least half-time at eligible school. Overseas study allowed if school's main campus is based in the U.S. and on approved list

Types of repayment

Full principal and interest, interest only, deferred and flat payment

Cosigner Info

Cosigner required on all undergraduate loans. Cosigner release available after two years of consecutive, on-time payments (must apply for release)

Late fee

5% of the unpaid amount of the payment due or $10, whichever is less

Eligibility requirements for CommonBond student loans

So, how do you qualify for a private student loan with CommonBond?

  • You’ll need to be an undergraduate or graduate student that is currently enrolled at least half-time at one of 2,000+ eligible schools. If you’re studying overseas, your school’s main campus will have to be based in the United States and on CommonBond’s list of eligible schools.
  • If you are an undergraduate or graduate student you are required to have a cosigner. A cosigner could be a parent, friend, or relative who is willing to take on the responsibility to cover your loan payments if for some reason you cannot. If you’re looking at CommonBond’s MBA loan you will not need a cosigner.
  • You’ll need a minimum credit score of 660.

How to pay back your loan

Everyone has different budgets and unique circumstances so CommonBond offers you four ways to pay back your loan:

  • Defer payments: This will allow you to completely postpone making your student loan payments until graduation. It’s important to remember that interest will accrue during deferment and will be capitalized at the end of the deferment period.
  • Fixed payments: Make fixed payments of $25 that are affordable and you’ll be able to save even more over the life of your loan. A little can go a long way.
  • Interest-only: Interest-only payments can be made while you’re in school. This will pay the interest as you go so it doesn’t accrue and get added to your balance.
  • Full monthly payment: Full monthly payment of the student loan (principal + interest) begins while you’re in school.

How to get private student loans with CommonBond

CommonBond makes it easy to explore your refinance options in just a few minutes online with no commitments, no documents, and no impact to your credit score.

To see your rate for a private student loan with CommonBond click here.

When you’re approved, you’ll e-sign your loan disclosures, and CommonBond will confirm your enrollment and loan amount with your school. That can take anywhere from five days to three weeks.

As soon as your school certifies the loan, the funds will be sent directly to your school.

Check your rate today >>>>> Visit CommonBond.

The bottom line

There is a reason CommonBond has funded over $2 billion dollars worth of student loans and have been considered one of the most innovative companies by Fast Company. They offer competitive interest rates, flexible repayment schedules, and 24 months of forbearance over the life of your loan if you ever get into economic hardship.

Although if you’re looking for a lender that does not require a cosigner or you live in Idaho, Louisiana, Mississippi, Nevada and Vermont you might have to look elsewhere.

FAQs

CommonBond was founded by three students who met in 2011 while enrolled in the MBA program at The Wharton School of the University of Pennsylvania. David Klein, Mike Taormina and Jessup Shean leveraged their top-tier business education to try to solve the frustrations of student lending. Klein leads the executive team.

On the company’s website they mentioned: “Inspired by companies like TOMS Shoes and Warby Parker, we have been committed since our launch to proving that business can and should be a positive force for change—we call it our “Social Promise.” It means that for every degree fully funded through us, we fund the tuition of a student in need for a full year through our partnership with Pencils of Promise. We’re the first-ever company to bring the “1-for-1″ model to education and finance.”

Money Mentors are real people that advise borrowers and help them become smart financial consumers as they enter college and beyond.

CommonBond’s “Money Mentors” are able to deliver customized guidance to CommonBond borrowers on topics like creating a budget, submitting the FAFSA, finding internships, mapping majors to career pathways, responsibly building credit, and various other things. This happens all over text message – for free.

All undergraduate borrowers are automatically enrolled in the Money Mentors program. Graduate students may elect to opt-in and be paired with a Money Mentor if they’d like.

Rate check doesn't hurt your credit score

Low interest rates

No prepayment penalty

Flexible repayment terms

on CommonBond's secure site