Common Bond Student Loans: Common Bond is an online lender founded in the year 2012. It offers both student loan refinancing and private student loans.
It might interest you to know that Common Bond was one of the first online student loan lenders, and they have continued to lead the way with other private student loans.
In this article, the main emphasis is on Common Bond student’s loan; as you will also get to discover some frequently asked questions about CommonBond Student Loans. Read On.
Common Bond Student Loans Repayment Plans
In terms of repayment for refinancing, CommonBond is quite standard; with payment starting around 30 days after the loan is disbursed. You can enroll for automatic payments on your CommonBond account to receive the 0.25 percent discount on your rate.
And CommonBond allows you to pay more than the monthly payment amount without any penalty if you’d like to pay off your loan early. For student loan borrowers, CommonBonddelivers repayment flexibility by offering different plans for undergraduate and graduate borrowers: in-school. They include:
- fixed monthly payment
- Deferred repayment.
MBA students don’t have the option of a fixed monthly payment but can choose from the other three options.
Several lenders only allow in-school and deferred repayment, making CommonBond a better option for borrowers that can’t afford full repayment in school but want to start putting money toward their loans before graduating.
Full Monthly Payment Option
In-school repayment is generally the cheapest option since you start making full principal and interest payments as soon as your loan is disbursed.
It is important to note that although this repayment plan allows you to save the most money, the majority of students can’t afford to start paying off their student loans while going through school.
Interest-Only Payment Option
The interest-only payment option is best for borrowers who cannot afford full repayment on their student loans but want to start paying off the interest that will accrue while in school.
Borrowers that opt to defer repayment until after school will have to pay all the interest added during school and after, which can be a huge financial burden even with a six-month deferment period.
Fixed Monthly Payment
Borrowers can also opt to pay a nominal fixed payment of $25 while in school if they aren’t sure about whether they can contribute full interest payments to their loans.
Keeping a fixed monthly payment helps borrowers have less interest outstanding upon leaving school. And any unpaid interest not covered will capitalize at the end of the fixed monthly payment period.
The last repayment plan offered by CommonBond is to defer payments until after graduation or termination of enrollment.
Borrowers are given a six-month grace period before payments are due, giving them time to prepare to pay off the loans.
Deferring repayment is the most expensive option for borrowers as interest accrues both in school and after which is applied to the total loan balance.
Rates, Terms, and Loan Amounts
CommonBondprovides student loan refinancing with the following interest rates, terms, and maximum loan amounts:
- Fixed interest rate loans ranging from 3.67% to 7.25% APR
- Variable interest rate loans ranging from 2.54% to 7.43% APR
- Hybrid fixed and variable interest rate loans ranging from 4.40% to 6.35% APR
- Loan terms available for 5, 7, 10, 15, or 20 years for fixed and variable; hybrid loans only have a 10-year repayment term option
- The minimum loan amount is $5,000
- The maximum loan amount is $500,000 depending on the degree program
FAQS on CommonBond student Loans
1. What Are the Benefits of a Common Bond Private Student Loan?
CommonBond prides itself on no double-digit loan rates. That means that even their highest-interest loans top out at under 10% interest rates.
CommonBond is the first and only finance company with a one-for-one social mission.
For every loan CommonBond funds, it also funds the education of a child in need through a partnership with Pencils of Promise.
Each year, CommonBond sends a select group of members to Ghana to meet the students they’re helping and make a direct impact on local communities.
They also host the annual CommonBond Social Impact Award, which provides funding to young entrepreneurs with socially-minded business ideas.
2. What Are the Eligibility Requirements for CommonBond Private Students Loans?
CommonBond doesn’t have any household income requirements for loans.
Applicants must be citizens or permanent residents of the U.S., and students must be enrolled in school at least half-time in order to qualify.
CommonBond issues loans for eligible Title IV schools (generally, those that participate with federal student aid programs) or not-for-profit schools. CommonBond does not issue loans for a for-profit or two-year institutions.
Applicants must apply with a qualified cosigner who has a credit score of 670 or higher. Borrowers with excellent credit are generally entitled to lower interest rates.
3. What makes CommonBond student loans unique?
CommonBond is set apart by the dedication it’s shown to giving back. For every loan funded through its platform, a child in need gets their education funded for a year.
So far, over 2,000 students have had their education funded by CommonBond. On top of that, the lender has helped establish over 420 schools in four underserved countries: Ghana, Guatemala, Laos, and Nicaragua.
Outside of its humanitarian efforts, CommonBond offers different types of loans based on your needs. MBA and graduate students have options alongside undergraduates and their parents. There are even refinancing options for former students and parents alike.
4. What Is the Application Process for a Student Loan from CommonBond?
To apply, you or your cosigner will need information on hand, including:
- Your contact information, including a valid ID
- Your recent pay stub
- The School you are attending & it’s state
- Your Year in school (freshman, sophomore, junior, senior)
- Your Enrollment status (full-time, half-time, etc.)
- Your social security number
It takes just 15 minutes to apply. You’ll get a conditional approval within minutes, and a full approval or decline after your credit has been reviewed.
In summary, CommonBond can assist you to lower your recent or existing student debt rates. They are changing the way student loans work.
By partnering with individuals and also an institutional investor, they can offer you much lower rates than what you are presently paying.
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