Editor's Note: Commonbond shut down in 2022 due to the ongoing Covid-19 pandemic and pause in student loans.
CommonBond is one of the leading student loan refinancing lenders with competitive 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 to parents with Parent PLUS loans. Lately, CommonBond has been offering extremely competitive rates for refinancing.
Should you refinance your existing student loans with CommonBond? This article will explain who will benefit and who should stay away.
Quick Summary
- Low student loan refinance rates
- Short cosigner release available after 24 months
- Above average origination fees on some loan types
CommonBond Student Loan Refinancing
CommonBond allows borrowers (including parents with Parent PLUS loans) to refinance up to $500,000 for multiple term options. 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.
Rates And Terms
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.
CommonBond loans don’t share the robust protections of federal student loans. But the lender 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.
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 | |
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Product Name | CommonBond Student Loan Refinancing |
Min Loan Amount | $5,000 |
Max Loan Amount | $500,000 |
Fixed Rate APR | 4.49% - 7.74% APR |
Variable Rate APR | 4.60% - 8.25% 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 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 |  |  |  |
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Rating | |||
Variable APR | 4.60% - 8.25% | 5.72% - 10.24% | 5.28% - 8.99% |
Fixed APR | 4.49% - 7.74% | 4.96% - 10.24% | 5.48% - 8.94% |
Bonus Offer | None | Up to $500 | Up to $775 |
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CommonBond Private Student Loans
Important Note: Commonbond has decided to NOT originate any more in-school loans for the reminder of 2022.
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 | |
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Product Name | CommonBond In School Private Student Loan |
Min Loan Amount | $2,000 |
Max Loan Amount | Cost of Attendance |
APR | As low as 3.74% 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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Who Qualifies To Apply?
CommonBond lends in every state except Mississippi and Nevada 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.
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.
Still, we recommend borrowers get a low cost term life insurance policy to cover the balance of the loans should anything happen.
Are There Any Fees?
While CommonBond doesn't charge any origination fees on its refinance loans, undergraduate loans, or its basic graduate student loans. However, it surprisingly does charge a 2% origination fee on its medical, dental, and MBA student loans.
You won't be charged a prepayment penalty with CommonBond if you decide to pay off your loans ahead of schedule. It does charge a late payment fee though on all of its loans of 5.00% of the unpaid amount or $10.00 (whichever is less) and a $5.00 returned check fee.
How Do I Contact CommonBond?
CommonBond uses Firstmark to service its loans. However, it does provide in-house customer service. If you have a question or concern, you can reach out to the lender's care team at (800) 975-7812 or care@commonbond.co. Live chat is also available.
CommonBond is not accredited by the Better Business Bureau (BBB) but does currently have a B+ rating with the bureau. As of writing, it's received 13 complaints from customers over the past three years. Each have either been answered or resolved and currently the most recent complaint was filed in July 2020.
Is It Safe And Secure?
While CommonBond doesn't hold any user deposits, it does ask for quite a bit of personal and financial information. By providing HTTPS encryption, it's able to keep this information private and secure. It also uses the Signal Sciences platform customer to further protect itself against web attacks. To date, the site has not suffered any data breaches.
Is It Worth It?
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 $1,000 bonus! Check out Credible here.
CommonBond Features
Min Loan Amount |
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Max Loan Amount |
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APR |
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Auto-Pay Discount | 0.25% |
Rate Type |
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Loan Terms |
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Origination Fees |
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Prepayment Penalty | None |
In-School Payments |
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Forbearance Period | Up to 24 months |
Cosigners Allowed | Yes |
Cosigner Release | Can be requested after 24 months of consecutive, on-time monthly payments |
Grace Period | 6 months |
Eligible Schools | 2,000+ Title IV accredited universities |
Soft Credit Pull Rate Checks | Yes |
Customer Service Options | Phone, email, and live chat |
Customer Service Phone Number | 1-800-975-7812 |
Customer Service Email | care@commonbond.co |
Customer Service Hours | Mon-Fri, 9 AM - 8 PM Sat-Sun, 9 AM - 5 PM |
Address For Sending Payments | Firstmark Services |
Promotions | None |
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. If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. 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 0.11% effective February 1, 2022 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. If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. 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 0.11% effective February 1, 2022 and may increase after consummation
CommonBond Student Loan Review
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Rates And Fees
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Application Process
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Customer Service
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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 toward 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, Wall Street Journal, Washington Post, ABC, NBC, Today, and more. He is also a regular contributor to Forbes.
Editor: Claire Tak Reviewed by: Chris Muller
