CommonBond Private Student Loans | How to Apply

CommonBond is a reputable lender that provides private student loans with a strong focus on transparency, community, and responsible lending.

CommonBond stands out not only as a private student loan provider but also as a company committed to social impact. For every loan funded, CommonBond funds the education of a child in need through their partnership with Pencils of Promise. This philanthropic approach adds a meaningful dimension to borrowing for education, allowing students to contribute positively to the global community.

In this article, we will explore CommonBond Private Student Loans, their unique features, and how they empower students on their path to success.

Key Features of CommonBond Private Student Loans

CommonBond offers a range of features that make their private student loans an attractive option for students:

  1. Competitive Interest Rates: CommonBond provides competitive interest rates, ensuring that borrowers can access financing at affordable terms.
  2. No Application or Origination Fees: Borrowers are relieved from the burden of application or origination fees, allowing them to maximize the loan amount without unnecessary costs.
  3. Cosigner Release Option: CommonBond offers a cosigner release option, allowing borrowers to remove the cosigner from the loan agreement after meeting specific criteria, such as making a designated number of on-time payments.
  4. Repayment Flexibility: Borrowers can choose from various repayment terms, ranging from 5 to 15 years, to find a plan that fits their financial situation and preferences.
  5. Personalized Customer Service: CommonBond takes pride in providing personalized support and guidance throughout the loan application and repayment process, ensuring a positive borrower experience.

Eligibility and Requirements

To be eligible for a CommonBond Private Student Loan, applicants must meet certain criteria, which may include:

  • U.S. citizenship or permanent residency.
  • Enrollment in an eligible undergraduate or graduate program.
  • Satisfactory credit history or a creditworthy cosigner for students with limited credit.

Responsible Borrowing with CommonBond

CommonBond is committed to responsible lending practices, ensuring that borrowers are equipped with the resources and support they need for successful repayment. The lender offers a variety of tools, such as student loan calculators and budgeting guides, to help borrowers make informed financial decisions.

CommonBond student loan refinancing

Student loan borrowers who are no longer attending school or who have graduated may qualify for student loan refinancing with CommonBond.

Both private and federal loans—including Parent PLUS loans—may be refinanced with the company.

CommonBond student loan refinancing
Loan amounts $5,000 – $500,000
Loan terms 5, 7, 10, 15, or 20 years
Fixed rate 2.83% – 6.74%
Variable rate 1.99% – 6.84%
Origination fee $0
Prepayment fee $0

Borrowers have several repayment terms available, as well as variable and fixed interest rate options. Student loan refinancing with CommonBond requires a borrower to meet certain eligibility criteria, as listed below.

>> Read MoreStudent Loan Repayment

Eligibility requirements

Student loan borrowers who refinance with CommonBond must be a U.S. citizen or permanent resident and must have graduated from one of more than 2,000 Title IV accredited colleges or universities.

Borrowers also need to provide a recent loan statement for all loans included in a refinance application.

Borrowers must also provide proof of residency and proof of income/employment. The latter can be satisfied with a recent paystub, offer letter from a soon-to-be employer, or two years of tax returns. CommonBond does not list a minimum income requirement.

Borrowers must also have credit score of at least 670 to be eligible for refinancing with CommonBond.

Pros & cons of refinancing with CommonBond

Pros

  • Autopay discount.

First, borrowers can enroll in automatic repayment and receive a 0.25% discount on their interest rate.

  • Wide range of repayment terms.

Borrowers have several options for repayment term lengths including a long maximum term of 20 years.

  • Unique hybrid interest rate option.

CommonBond is one of the only lenders to offer a hybrid interest rate. The interest will remain fixed for the first five years then variable after. This can be beneficial because rates will be predictable during the beginning of repayment when loan balances are at their highest.

  • No fees

Like most refinancing lenders, CommonBond charges no origination fees, application fees, and prepayment penalties.

  • Deferment and forbearance options

CommonBond stands out from other student loan refinance companies with its forbearance and deferment options. CommonBond allows borrowers to delay payments if they join the military, are in a residency or fellowship, or are facing financial hardship.

  • Death or disability discharge

If you die or become permanently disabled while repaying a CommonBond loan, that debt will be discharged unless you have a cosigner. If you have a cosigner, he or she would become responsible for repayment.

Cons

  • Cosigner responsible if primary borrower dies or becomes disabled.

If the primary borrower dies or becomes permanently disabled, the cosigner will become responsible for repayment. Some other lenders will discharge the loan regardless of whether there is a cosigner.

  • Some borrowers may be ineligible.

Like with most other refinancing lenders, some borrowers won’t qualify for refinancing with CommonBond based on their credit score or income level.

  • Federal borrowers will lose protections.

As with any refinancing company, federal loans refinanced with CommonBond will lose federal student loan protections and repayment options.

 Commonbond Student Loan Refinance  Application Process

The application process for a CommonBond student loan refinance is straightforward.

First, borrowers can check their interest rate online first without submitting a full application. CommonBond uses a soft credit pull for this step which will not affect your credit score.

If the decision is made to go through with an application, it can be completed online in a matter of minutes. Applicants may be asked to submit income verification documents to complete the application.

Once the application is complete and documents are sent, CommonBond provides an approval or denial. Then, within a matter of days, the loans refinanced through CommonBond are paid off, and repayment begins on the new refinanced loan.

Private Commonbond Student Loans

Private student loans are available to qualified borrowers through CommonBond. The company provides private loans for undergraduate, graduate, and MBA students, so long as they meet eligibility requirements.

The loan terms, rates, pros, and cons for each program are provided below.

CommonBond Undergraduate Student Loan CommonBond Graduate Student Loan CommonBond MBA Student Loan
Loan amounts School certified cost of attendance 100% of attendance cost $5,000 – $500,000
Loan terms 5, 10, or 15 years 5, 10, or 15 years 10 or 15 years
Fixed rate 3.74% – 10.74% 3.74% – 10.74% 6.04% – 7.25%
Variable rate 3.84% – 9.40% 3.87% – 9.40% 6.19% – 7.15%
Origination fee $0 $0 2%
Prepayment fee $0 $0 $0

Requirements & Repayment Options

For all three types of private student loans offered by CommonBond, borrowers need to be enrolled at least part-time with one of the company’s eligible schools.

Also, borrowers must be a U.S. citizen or permanent resident, and have proof of residency.

A credit check is also required, but if borrowers do not qualify on their own, a cosigner may be added to the application for all three loan programs.

Additionally, while borrowers are in school, they have the option of making interest-only payment, fixed payments, or deferring repayment until after leaving school.

Pros & Cons Of Commonbond Student Loans

Pros

  • The most significant advantage to getting a private student loan with CommonBond is the ease of the application process, all completed online.
  • Private student loans are available for far higher amounts than most other private student loan lenders.
  • Borrowers also have the option to add a cosigner if needed to qualify, and there are no origination, application, or pre-payment fees charged for a new loan.

Cons

  • Some borrowers may not qualify independently for a CommonBond private student loan.

A cosigner is allowed, but a request for cosigner release is only available after 24 months of consecutive on-time monthly payments.

  • The interest rates available for CommonBond private student loans may be higher than other lenders or federal student loans, depending on the borrower’s credit history.

Application Process

The application process for getting a private student loan with CommonBond is simple.

Borrowers submit their loan request online, for whatever degree program they are pursuing. The lender then reviews the application details and makes a decision based on credit history, amount of the loan, and degree program.

Once approved, the loan proceeds are sent directly to the school to pay for the cost of attendance.

Conclusion

CommonBond Private Student Loans stand out not only for their competitive interest rates and borrower-friendly features but also for their commitment to social impact and community building. With a focus on responsible lending, personalized customer service, and support for educational access, CommonBond empowers students to pursue their academic aspirations without unnecessary financial stress.

Responsible borrowing and financial planning remain essential components of a successful college experience. By choosing CommonBond as a trusted partner in financing education, students can embark on their higher education journey with confidence, knowing that they are supported by a lender that values their success and the greater good of the global community.

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