Seeking private loans to finish your undergraduate, graduate or MBA? CommonBond is one of the leading private lenders with moderate interest rates, and excellent repayment terms.
CommonBond was one of the first online student loan lenders, and they have continued to lead the way with private student loans.
Additionally, CommonBond offers student loan refinancing to graduates and their parents with Parent PLUS loans. Lately, Commonbond has been offering extremely competitive rates for refinancing as well.
Regardless, CommonBond continues to make it onto the list of Best Places To Refinance Your Student Loans. They are also one of just three lenders we recommend for finding the best student loans.
Should you get a private student loan or refinance at CommonBond? This article will explain who will benefit, and who should stay away.
Quick Summary
- Low Private Student Loan Rates
- Short Cosigner Release Available After 24 Months
- Average Student Loan Refinancing Rates
Who Qualifies To Refinance With CommonBond?
CommonBond lends in 44 states to graduates of 2000 Title IV schools. Unlike most lenders, CommonBond doesn’t have clearly displayed refinancing criteria, but it does consider your credit history, other debts and current income in underwriting the loans.
In addition to offering student loan refinancing, CommonBond offers private loans for undergraduate and graduate school as well as MBA programs. Undergraduate and graduate students must have a cosigner to borrow from CommonBond. MBA borrowers may be able to qualify for the loan on the basis of their own credit score.
CommonBond’s Student Loan Refinancing Rates and Terms
CommonBond allows borrowers (including parents with Parent PLUS loans) to refinance up to $500,000 for 5,7,10,15 or 20 years. Interest rates on the loans are somewhat lower than rates on Federal loans, but the rates are far from the lowest in the market (especially for highly qualified borrowers). Graduates who want to take responsibility for Parent PLUS loans can become the primary borrower on the loan by refinancing with CommonBond.
Borrowers can choose between fixed, variable and hybrid loans. Fixed rate loans have a fixed interest rate throughout the life of the loan, whereas variable rate loans have interest rates (and minimum payments) that may adjust month by month. Maximum interest rates on variable rate loans range from 8.99-12.99% depending on the maturity of the loan.
On unique product that CommonBond offers is its hybrid rate loan. This is a loan that has a fixed interest rate for five years, then the interest rate become variable. This is a great way to get the safety of a fixed rate loan when the interest part of your loan payment is higher, while getting some benefit from a variable interest rate later on.
Aside from the Hybrid loan option, CommonBond’s rates and terms are nothing special. You may save some money by refinancing, but don’t expect huge interest rate reductions.
CommonBond Student Loan Refinancing Details | |
|---|---|
Product Name | CommonBond Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | $500,000 |
Fixed Rate APR | 2.98% - 6.81% APR |
Variable Rate APR | 2.98% - 6.81% APR |
Rate Type | Variable and Fixed |
Loan Terms | 5, 7, 10, 15, 20 years |
Promotions | None |
How Does Commonbond Student Loan Refinancing Compare?
Commonbond is consistently rated near the top of the list when when it comes to student loan refinancing. Check out our full list of the best places to refinance student loans here.
However, they may not have the lowest rate available for highly qualified borrowers. They also rarely offer any type of bonus offer for users to refinance with them. Check out this quick comparison here:
Header |  |  |  |
|---|---|---|---|
Rating | |||
Variable APR | 2.98% - 6.81% | 1.89% - 6.66% | 2.39% - 6.01% |
Fixed APR | 2.98% - 6.81% | 2.63% - 6.63% | 2.79% - 5.99% |
Bonus Offer | None | Up to $500 | Up to $775 |
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CommonBond's Private Student Loans
In addition to offering student loan refinancing, CommonBond offers private loans for undergraduate, graduate, and MBA programs. The rates and terms for their private student loans are some of the most competitive that we've seen. That consistently puts CommonBond as one of our top private student loan lenders.
MBA loans allow borrowers to defer payments for up to 32 months while they are in school. The interest rates they have assume full deferment.
Graduate and undergraduate borrowers can also opt to defer payments during school, make $25 monthly payments or pay the interest during school. This flexibility is rare for most lenders.
CommonBond Student Loans Details | |
|---|---|
Product Name | CommonBond In School Private Student Loan |
Min Loan Amount | $5,000 |
Max Loan Amount | Cost of Attendance |
APR | As low as 6.59% APR |
Rate Type | Variable and Fixed |
Loan Terms | 5, 10, 15 years |
Promotions | None |
How Do Commonbond Private Student Loans Compare?
Again, Commonbond is consistently in the top of the pack for private student loan lenders, but they may not always have the lowest rates. They also have a higher minimum than most lenders. Check out our full list of the best private student loans.
Check out this quick comparison here:
Header | |  |  |
|---|---|---|---|
Rating | |||
Minimum Loan | $5,000 | $1,000 | $3,000 |
APR Type | Variable and Fixed | Variable and Fixed | Variable and Fixed |
Cosigner? | Required | Not Required | Not Required |
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Any Concerning Fine Print?
The most concerning fine print for CommonBond borrowers comes with borrowing for undergraduate or graduate school. Borrowers have to take on cosigners, but the cosigners may be released after 24 months of on time payments. This is one of the shortest cosigner release periods available, but having a cosigner can be tough.
We recommend borrowers get a low cost term life insurance policy to cover the balance of the loans should anything happen.
CommonBond loans don’t share the robust protections of Federal Student loans, but CommonBond does allow forbearance during economic hardship. If you qualify, you may temporarily stop making monthly payments for a limited period of time. During this time, interest continues to accrue.
Bottom Line
Borrowers who absolutely have to take out private loans to finish school, should consider CommonBond a top contender. It’s not ideal to need a cosigner, but having one can result in better rates and terms. It’s especially helpful that CommonBond offers a cosigner release program after just 24 months of on time payments.
In terms of refinancing student loans with CommonBond, you’ll probably find a better rate elsewhere. Compare CommonBond to other lenders at Credible to see where you might find the best interest rate. Plus, if you refinance with Credible, you'll get up to a $750 bonus! Check out Credible here.
Disclosures
REFINANCE:
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.16% effective Sep 1, 2020 and may increase after consummation.
IN-SCHOOL LOAN ORIGINATIONS:
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.17% effective Sep 1, 2020 and may increase after consummation.
CommonBond Student Loan Review
- Rates And Fees
- Application Process
- Customer Service
- Products and Services
Overall
Summary
CommonBond can help you lower your current or existing student debt rates. They’re changing the way student loans work. By partnering with individual and institutional investors they can offer you much lower rates than what you’re currently paying.
Pros
- Typically low refinancing rates
- Competitive private student loan rates
- Ability to refinance Parent PLUS Loans into the child’s name
Cons
- Borrowers for private loans will need a cosigner
- High origination fee on private loans
- Not available in all states
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.