CommonBond Student Loan Consolidation
CommonBond aims to shake up the student loan market through its use of affordable products, intuitive technology and exceptional customer service. Founded in 2011, they aim to create a way for students to refinance their loans simply with excellent service along the way.
Common Bond Loan Basics
CommonBond has several different student loan refinancing options available. If you have federal or private student loans, you can consolidate them into a loan with CommonBond at a competitive rate. Currently, CommonBond offers rates as low as 1.95% APR with the auto-pay discount.
If you are a parent looking to refinance student loans you took out for your children then CommonBond is an excellent option to consider. CommonBond offers great packages you can choose from where you can receive a rate as low as 1.95% APR on a variable rate loan, or as low as 3.74% APR on a fixed rate loan. They also offer hybrid rate loans; this is where you receive a fixed rate for the first five years then a variable rate for the last five.
As for repayment terms, CommonBond is right in line with what other lenders offer. On its variable and fixed rate loans, they offer repayment terms of 5, 10, 15 and 20 years. Meanwhile, on its hybrid loan offering, your repayment term will be 10 years.
Lastly, the maximum amount you can refinance with CommonBond is $500,000. This make them a great option to consider, especially if you have substantial debt resulting from graduate schooling.
How it Works
To see if you qualify, you can visit CommonBond's website to fill out its simple application form. Once you submit it, CommonBond will do a soft pull on your credit score – meaning it will check your score but its inquiry won't show up on your report – to estimate the rate if you qualify.
If you do qualify, the next step is to provide the documentation CommonBond needs. First, you will need to supply proof of employment by way of pay stubs or a written offer for a job. Next, for every loan you want to consolidate with CommonBond, you'll need to provide a statement showing pertinent info such as the loan balance and the servicer's name and address. Lastly, you will have to supply proof of your current residence. You can do this by sending a copy of your driver's license – if the address is current- a copy of your utility bill or a recent bank statement.
Once you submit all the required documentation, CommonBond finalizes the application; this is where they do a hard pull on your credit score – to determine final eligibility and rate- and verify all information you provided them. Once everything is in order, you will sign your loan contracts. From there, CommonBond sends checks to your loan providers to pay off the loans.
To repay the loan, CommonBond entices you to sign up for automatic payments –where they withdraw money from your bank account. If you do this, then you qualify for a 0.25% discount off your loan.
Eligibility Requirements for CommonBond
Similar to other lenders you have to meet certain criteria to refinance your student loans through CommonBond, which include the following:
- You must be a U.S citizen or a permanent resident.
- You must have also graduated from a Title IV accredited university or graduate school program.
- You must also show the ability to repay the loan, meaning your credit score, education and employment will be factors CommonBond examines to determine eligibility.
Benefits of Refinancing Through CommonBond
CommonBond offers flexible repayment terms that are great for all situations. For example, if you want to pay off your student debt as quickly as you can, then you can choose a lower repayment term whereas if you need a lower monthly payment to align with budgetary needs, then you can opt for a longer repayment term.
The competitive interest rates offered by CommonBond make them an enticing option to consider especially when you compare them to the rates offered by federal and private student loan providers. Depending on your credit, if you qualify you could substantially reduce the interest rate you pay on your student loan debt. CommonBond states that the average you could save by using them is around $14,000.
It's risk free to find out if you qualify. Since they only do a soft pull at the beginning of the application process, it allows you to see what kind of rate you qualify for without fear of the check showing up on your credit report. Simply stated, it's easy to find out how much you can save and you won't hurt your credit score to do so.
Similar to other student loan providers, CommonBond does offer forbearance in the event you become unemployed while repaying the loan. This is where CommonBond will allow you to go for a specified time without making payments.
Drawbacks to Using CommonBond
The only drawback to using its services is they don't have an income-based repayment plan like other loan providers do. This is where you pay a fixed amount – normally specified as a percentage- of your income monthly. However, CommonBond does offer competitive interest rates and no fee loans, which might result in a lower monthly payment than an income based plan.
Verdict - Very Good
CommonBond offers several different refinancing programs for students and parents with student loan debt. With an easy application process, friendly customer service and competitive rates, its refinancing packages are perfect if you want a personalized approach to handling your student loan debt and want to save money in the process.