CommonBond vs SoFi

When choosing a lender to refinance your student loan debt, it is important to compare and contrast the services offered by multiple companies. In this case, Commonbond and SoFi are both top choices in the student loan refinancing industry, offering similar services. However, there are some differences that you should be aware of:

Hybrid Interest Rate

Both Commonbond and SoFi offer fixed interest rate loans and variable interest rate loans. However, Commonbond also offers a hybrid interest rate loan, which is unique to the student loan refinancing industry. Hybrid loans are a common practice in mortgage lending, but are not a common practice within education financing. In fact, Commonbond was the first lender in the student loan refinance industry to provide a hybrid rate offering.

Hybrid interest rates combine the best parts of fixed and variable rates, helping borrowers reduce their interest rate, monthly payments, and total interest paid. A borrower will have a fixed rate for the first half of their hybrid loan and then transition to a variable rate for the latter half, which generally means that they will have a lower interest rate to start off with. This is a particularly good option for those who would like to pay off their loans early because they can repay their loan before it switches to a variable interest rate, saving them more money in the long run.

Fees

Both Commonbond and SoFi do not charge a loan origination fee or a prepayment penalty fee. Most lenders do not have prepayment fees, but the majority do have origination fees, so it is nice that both lenders do not charge that fee.

SoFi does not even charge a late fee. Commonbond, on the other hand, does charge a late fee of 5 percent of the unpaid amount of the payment due. Late fees are a common practice in the loan industry, so the fact that Commonbond charges this fee is not unusual. It is a nice perk that SoFi does not charge a late fee, but any borrower should strive to make on-time payments each month, as their credit score could be negatively affected if they do not. Therefore, not having a late fee could remove some stress, but it could also be a detriment if you fall into a pattern of late payments.

Loan Forbearance

Both Commonbond and Sofi offer loan forbearance if a borrower is experiencing financial hardship. However, Commonbond offers up to 24 months of loan forbearance, while SoFi only offers up to 12 months.

Loan forbearance is a very helpful service if you are unable to make your monthly payments for whatever reason. During a period of forbearance, you are not required to make payments, but in some cases, as is with Commonbond, you can still make payments during this time, when you are able. Forbearance also should not affect your credit score.

It is important to note that even though Commonbond has a longer period of available forbearance than SoFi, you may not be approved for that whole term. 

Member Benefits

Commonbond and SoFi have similar services, assisting borrowers with career planning and connecting customers with specialists. But, SoFi has a membership program that provides multiple benefits.

To become a SoFi member you can either pick a loan product, or simply make an account. Once you are a member, you will have access to financial planning tools and services, member interest rate discounts, deals from SoFi partner companies, and you can even draft your will for free. These offerings are a great way to plan for your financial future, beyond paying off your student loan debt.

Social Impact Program

Commonbond goes one step beyond in helping students finance their education and pay off student debt, by making a commitment to help children around the world receive an education.

In partnership with Pencils of Promise, a nonprofit organization that builds schools and increases educational opportunities for children in developing countries, Commonbond is making a difference in the developing world. And if you choose to refinance your student loans with Commonbond, you will not only be helping yourself get out of debt, but you will be helping a child receive their education. 

To date, Commonbond has donated $1 million to students in need and built over 470 schools. Overall, if you choose to refinance with Commonbond, you will also be making a global impact.

Full Balance Refinancing

SoFi has no upper limit on how much you can borrow to refinance your student loans. The line is drawn only when the total balance owed on your loans has been reached. This is a great offering if you have multiple student loans, allowing you to consolidate them all into one loan with better rates.

Commonbond allows you to refinance up to $500,000. However, for the majority of borrowers, their total student loan debt will likely be far less than this maximum loan amount, so this upper limit should not be problematic.

Customer Reviews

Commonbond and SoFi both have limited numbers of customer reviews. However, based on the reviews that we do have, SoFi is ranked significantly higher than Commonbond with many positive reviews.

Commonbond currently only has 25 reviews, but 68 percent of them are one star reviews, outlining difficulties with customer service, as well as a very slow funding time that often left borrowers waiting for weeks while both the old and new loan were potentially accruing interest.

If you've refinanced your student loans with Commonbond, please tell us about your experience and leave a review.

SoFi currently has 57 reviews, 67 percent of which are five star reviews. Customers most often highlight incredible customer service and lowered rates, as well as a much shorter repayment term, saving them much more money than they would have otherwise.

If you've refinanced your student loans with SoFi, please tell us about your experience and leave a review.