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. However, rates at CommonBond tend to run a bit higher than the best lenders.
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'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.
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 the rates and terms are reasonable. 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 a $200 bonus! Check out Credible here.
Common Bond Student Loan Review
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Rates And Fees - 80
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Application Process - 80
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Customer Service - 85
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Products and Services - 75
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.
Cash Cow Couple says
How interesting! This sounds like a great option for grad students in those schools. It will be a lot better when they expand into more colleges.
Matt says
I tried to refi with them and was disappointed with the process… it was all done online with no opportunity to speak to someone to ask questions or get clarification. I left several voicemail messages without any response from CommonBond yet still continued to get marketing emails. Unfortunately execution and customer service doesn’t measure up to the slick marketing and brand.