CommonBond Student Loan Refinancing
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CommonBond was started in 2012 and since that time it has handled $3 billion worth of student loans. Its main focus is offering competitive rates, simple options, and a seamless experience for its borrowers. It was also one of the first online lenders relating to student loans.
Currently, CommonBond offers refinancing loans to people in every state except for Nevada and Mississippi. This review will mainly focus on CommonBond’s student loan refinancing options.
CommonBond Student Loan Refinance Overview
| APR (fixed interest rate) | 2.59% – 6.74% |
| APR (variable interest rate) | 2.56% – 6.87% |
| Eligible loan types | Federal, Private, Parent PLUS |
| Refinance amount | $5,000 – $500,000 |
| Repayment terms | 5, 7, 10, 15, or 20 years |
| Minimum credit score | 680 |
| Lender type | Direct lender |
| Good for: | Competitive fee structure, numerous options |
CommonBond Pros
- Competitive refinancing rates
- No hidden fees
- Abundance of refinancing options
CommonBond Cons
- Do not operate in Nevada or Mississippi.
- Only available to those with at least a bachelor’s degree
- No disclosure of income requirements
Application Process
You are able to check to see how much you will be entitled to get through a CommonBond loan without having to submit to a hard credit check. Therefore, you can see what total sum you are entitled to borrow and at what rate, depending on your current situation.
You do need to have at least a bachelor’s degree in order to get a CommonBond loan. The minimum credit score to apply for a CommonBond loan is 680 and there is no disclosure of the minimum necessary income.
You also need to be a US citizen, a permanent resident, or a holder of certain visas in order to apply. The school you attended also has to have been approved to get federal aid. The average time for you to get approval and be credited with the borrowed funds is about five business days.
Terms & Requirements
CommonBond outlines a large portion of the terms and requirements for refinancing student loans. Across the board, the fees and rates are transparent, varying depending on your situation. The rate is about average for the sector, with certain features standing out from the crowd, such as the 24-month forbearance period.
Loan Requirements
Most of the standard requirements of refinancing will be required by CommonBond. This includes your credit history, current income, details of your employer, the current level of debt, housing costs, and age. Certain credit scores and debt-to-income levels need to be met to get more competitive rates.
As well as federal loans, you are able to refinance Parent Plus loans that are in your own name. If you are getting a co-signer, they will need to meet certain income and credit score requirements. About 20% of all of the borrowers at CommonBond will have co-signers. There is a co-signer release option after 36 months’ worth of on-time payments.
Loan Terms
The CommonBond loans will start from 2.59% for fixed rates and go up to 6.74%, including a 0.25% autopay discount. The variable rates are between 2.56% and 6.87%, while there is also a hybrid option available, at rates of 2.98% to 6.57%.
The exact rate that you get is going to be dependent on numerous factors, including your current income and credit history. As a whole, the rates are competitive in terms of industry averages. For the hybrid option, it sees you working off a fixed interest rate for the initial five years and then moving onto a variable rate.
You can get a loan for as low as $5,000 and all of the way up to $500,000. The late fees will be 5% of the monthly repayment or $10, whichever is lower.
Repayment Terms
At CommonBond, borrowers will have forbearance of up to 24 months during the course of the loan’s lifetime. This is more extensive than you will normally find. There are also no prepayment penalties in place or any loan origination fees. A portion of all of the loan repayments at CommonBond goes towards the Pencils of Promise charity.
You will be able to get a loan term of 5, 7, 10, 15, or 20 years when you are getting a variable or fixed-rate loan. A hybrid rate loan will only be allowable for a 10-year term. There is the ability to make greater than minimum repayment through autopay, but there can be no autopay bi-weekly payments.
Get my ratePrivacy and Security
CommonBond is committed to making sure that all of its borrowers are catered to in a safe and secure manner. This means that all correspondence will be fully encrypted and you will be able to monitor all of the data that is collected. Numerous safeguards are in place to protect sensitive data, including technical, administrative, and physical safeguards.
In terms of reputation, CommonBond is known for being a reputable lender. It is regulated by respected authorities and does not appear to be engaged in any harmful or misleading practices.
Customer Support
The CommonBond customer support team will be operations from Monday to Friday between 9am and 8pm EST. There is the ability to send them an email whenever you want.
Firstmark Services is the servicer of the loans, while the customer support team at CommonBond is all in-house. If you run into some sort of issue, you are able to escalate your concerns and speak with an advisor or banker in some circumstances.
Final Thoughts
If you are looking around to find a way to refinance your student loans, then CommonBond is a good choice to consider. It offers competitive rates, as well as extensive forbearance periods and minimal fees. Over the years, it has built up a solid reputation in the space and it offers a lot of perks that you might not find elsewhere.
Address
524 Broadway
6th Fl.
New York, NY 10012