CommonBond

• Low and Transparent Rates
• No Hidden Fees
• Refinancing Term Lengths
• Forbearance Options
• Employment Services
• Pencils of Promise

Low and Transparent Rates

CommonBond has charts laid out on its site for a variable loan, fixed loan, or hybrid loan. For each type of loan, consumers can see a high and low APR rate, estimated monthly payment, estimated interest, and an estimated cost of a $10,000 student loan. And you can easily see which rates you qualify for by pre-qualifying.

Not only is CommonBond transparent, but it also features lower rates than other private lenders in the student debt industry. The site states that CommonBond investors believe that creditworthy borrowers deserve lower rates than those provided by traditional institutions. Individual rates depend on the credit profile, choice of variable or fixed rate, and the term (length) of the student loan.

Fixed interest rate:

• 2.59–6.74% APR
• Terms — 5, 7, 10, 15, or 20 years

Variable interest rate:

• 2.56–6.87% APR
• Terms — 5, 7, 10, 15, or 20 years

Hybrid interest rate:

• 2.98–6.57% APR
• Terms — 10 years

Variable rates can change with the market, so monthly payments may vary. However, CommonBond's rates are competively low in the industry overall.

No Hidden Fees

There is no prepayment penalty fee if a borrower would like to pay off their loan sooner, and there is no loan origination fee, an uncommon practice in the industry.

It is important to note that CommonBond does have a late payment fee of 5 percent of the unpaid amount for the month's payment. However, most, if not all, loan lenders have a late payment fee.

Refinancing Term Lengths

CommonBond boasts some of the most flexible options for student loan refinancing terms in the industry; when borrowers refinance their student loan debt with CommonBond, they can choose from a variety of terms: 5, 7, 10, 15, or 20 years.

CommonBond also offers a 10-year hybrid loan. With the hybrid CommonBond student loan, the first 60 payments (5 years) of the student loan have a fixed interest rate. The last 60 payments (last 5 years) will have a variable interest rate which is the total of the margin plus 1-month LIBOR.

The CommonBond Hybrid Loan is a great option for borrowers who would like to pay their student loan off early.

Forbearance Options

CommonBond offers a degree of repayment flexibility that many other private lenders lack.

Students can apply for in-school deferment of a CommonBond student loan during the time they are enrolled. Like most private lenders, the loans will accrue interest while the student is in school, but deferment can be an attractive option for consumers who plan on attaining higher education to improve their career outlook.

CommonBond also offers military and residency forbearance. In addition, graduates may apply for loan forbearance in three-month periods for a total of 24 months over the lifetime of their student loan, offering a brief grace period of lower or paused payments. These options allow for greater customization in student loan repayment plans.

Employment Services

Like many student loan refinancing companies, CommonBond has an employment protection clause (known as a forbearance period). Not only will the lender pause any payments if a borrower loses their job, but its employment specialists will also help them find a new job.

Borrowers can also join the "CommonBond Community" and gain access to networking events. These events help members make connections in their industry and are especially great for those looking for a new job or a mentor.

Pencils of Promise

Inspired by other companies like TOMS Shoes and Warby Parker, CommonBond strives to prove that business can and should be a positive force for change. Through their partnership with the non-profit organization, Pencils of Promise, for every degree fully funded through CommonBond, the lender will fund the tuition of a student in need.

• Must Be a Graduate
• Late Payment Penalty
• Hard Credit Pull
• Cosigner Required
• Limited State Availability
• Customer Reviews

Must Be a Graduate

To start refinancing student loans, borrowers must be a graduate. This seems to be standard in the student debt industry, but some student loan refinance companies can still consolidate or refinance a student loan if borrowers did not graduate or are no longer enrolled in school.

Late Payment Penalty

CommonBond charges a late fee of 5.00 percent of the unpaid amount of the due payment or $10.00 (whichever is less), and a return check fee of $5.00, subject to state law restrictions.

There is no origination fee or prepayment penalty for student loan refinancing.

Cosigner Required

While a cosigner is optional for students applying for an MBA loan, undergraduate and graduate students require a creditworthy cosigner to refinance student loans. 

CommonBond offers cosigner release after the borrower graduates from his or her degree program, passes the age of 21, completes 24 months of repayment, and meets CommonBond's underwriting criteria.

Limited State Availability

CommonBond refinancing is available in all states except Mississippi and Nevada. If you live in either of these states, you will need to look into other student loan refinancing options.

Customer Reviews

It is important to note that CommonBond reviews are currently limited, but the majority of reviews are negative, frequently outlining bad experiences with customer service, as well as long waits for loan underwriting.