CommonBond Review  

By loansmack



Key Features

  • Student loans for undergraduate and graduate.
  • Refinance student loans for former students.
  • Can apply with & without a cosigner (refinance & MBA's only); cosigner release offered.
  • 5, 7, 10, 15, 20 year repayment terms.
  • Undergrad Rates:  Variable Rates - 3.08% – 9.21%  
  • Graduate Rates: Variable Rates - 3.08% – 8.96%  Fixed Rates - 5.49% – 9.67%.  
  • Refinance Rates: Variable Rates - 2.81% – 6.74%  Fixed Rates - 3.18% – 7.12%.  
  • No prepayment penalties.
  • Interest-rate reduction of 0.25% if you enroll in Auto Pay.

About CommonBond

CommonBond was founded in 2011 by three students from Wharton's MBA program and allows students to take out loans to pay for college, as well as refinance student loans for people that have already graduated.  CommonBond is known for its customer service, it's diversity of low interest rate products, and the social mission of the business.  Each CommonBond loan helps provide education for a child in need. 


Pros

  • Repayment Options – The amount of repayment options allows you to customize your repayment plan to your specific situation. 
  • Quick Application Process - You can apply in a few minutes.
  • Low rates - Depending on you and your cosigner's (if applicable) credit.
  • Social Responsibility - You'll feel good knowing that CommonBond gives to children in need throughout the world in terms of education costs.

Considerations

  • You'll need a cosigner unless you are an MBA or are refinancing.
  • There is a 2% origination fee on new loans (for refinancing there is no fee).  While origination fees are important, you should also be comparing APRs. APR stands for Annual Percentage Rate and it’s the interest rate, inclusive of origination fees, that you’ll pay on your student loan. The APR is the all-inclusive number that matters most.
  • If you live in Idaho, Louisiana, Mississippi, Nevada, South Dakota, or Vermont you are not eligible for a CommonBond loan.

How to get started with CommonBond

You can get started with CommonBond through their online process.  Remember, when you get a rate estimate from a lender, this involves a 'soft credit' check, which will not affect your credit score.  When you decide to actually apply for a loan, the lender will do a hard credit pull which will slightly affect your credit score.

Documents you'll need for when applying to most lenders:

  • Government ID (passport, driver's license, green card).
  • Income verification (if applicable); this can include pay stubs, W-2's, etc.
  • Social Security number.