CommonBond Student Loan Refinancing Review
CommonBond is a recent startup with a social mission. They offer student loan refinancing along with private student loans for students getting an undergraduate, graduate, or MBA degree. For each loan that funds, they will cover a year of tuition to a student in need. CommonBond works with loan investors to attain lower rates for their members. They also offer a community for its members through networking opportunities, speaker events, dinners in cities across the country, and career assistance.
|A Quick Look at CommonBond Student Loan Refinancing|
|Fixed APR||3.35% – 7.12%|
|Variable APR||2.81% – 6.74%|
|Loan terms offered (years)||5, 7, 10, 15, 20|
|Minimum loan amount||$5k|
Interest Rates & Terms
A CommonBond student loan refinance offers fixed rate loans from 3.35-7.12% APR, variable rate loans from 2.81-6.74% APR, and hybrid loans from 3.77-6.22% APR. With the hybrid loan, rates are fixed for five years, then switch to a variable rate for 5 years. Like many other lenders, they offer a 0.25% discounted interest rate when you sign up for autopay. Terms range from 5-20 years.
How Much Can You Borrow?
CommonBond requires a minimum loan amount of $5,000 and will refinance a maximum of $500,000.
You must be a U.S. citizen or permanent resident to refinance your student loan with CommonBond. You must also have graduated from one of the 2,000 Title IV accredited universities or graduate programs on their list. The minimum credit score required is 660.
Advantages of Refinancing With CommonBond
Unemployment protection: If you run into financial difficulties, their CommonBridge program allows you to temporarily postpone payments for up to 24 months total.
Help children in need: CommonBond donates to children’s education with each loan they fund, through a for-purpose organization called Pencils of Promise.
Refer a friend: Tell your friend about CommonBond, and you’ll receive $200 when they refinance their student loan.
What Are The Drawbacks?
Not all schools are eligible. CommonBond refinances from a selection of Title IV schools, but you’ll need to check to make sure your school is on this list. If not, you won’t be able to refinance with them.
Exclusions may apply. Student loan refinancing is available in 44 states. States CommonBond currently does not serve are Idaho, Louisiana, Mississippi, Nevada, South Dakota, and Vermont.
CommonBond’s Care Team is available by phone, email, and live chat to answer your questions and help you throughout the refinancing and repayment process. The reviews from LendingTree customers support a positive experience with the company.
In addition to saving money on their loans, customers cited the seamless experience, personal touch, and altruistic mission of the company as positive factors in their experience.
Is CommonBond Right For You?
Similar to other lenders offering student loan refinancing, CommonBond helps borrowers refinance student loans from undergraduate and graduate programs, as well as federal PLUS loans. What sets them apart is their social mission and fostering of community. If you want your student loan to have a global impact on education, then CommonBond is the lender for you.
If you still have questions about how CommonBond compares to other student lenders, check out LendingTree’s student refinance lender comparison table. This table allows you to compare multiple student loan refinancing options right in one spot.
Ready to Apply?
If their social promise moves you and you’re ready to apply, here are seven steps to refinance your student loan with CommonBond:
- Gather your documents. This includes your pay stubs, monthly housing costs, school information, loan amount, and loan billing statements.
- Create an account. Create a username and password so you can pick up where you left off.
- Get rate quotes. Filling out a simple form online will provide you with rate quotes without affecting your credit score.
- Complete application. If you like the rates you’re quoted, then complete the full application online.
- Review. They will review your loan application and may request additional information, like employment verification or tax returns. This may take 1-3 days.
- E-sign disclosure agreement. Once your application is accepted, and your information verified, you’ll receive a loan offer. Be sure to read the fine print, and make sure the loan term, interest rate, fees, and APR match your expectations. Then electronically sign the disclosure.
- Disbursement. Once your loan gets funded, CommonBond will pay off your existing student loan. You’ll then begin making payments to CommonBond.
What You’ll Need
- Proof-of-income, including pay stubs, W-2s, and two years of tax returns.
- Proof of residency.
- School Information.
- Billing statements from your current loan(s), including total loan amount(s) to refinance.