CommonBond Private Student Loans – Repayment, Login, Pros & Cons

CommonBond is a reputable lender that provides private student loans with a strong focus on transparency, community, and responsible lending. In this article, we will explore CommonBond Private Student Loans, their unique features, and how they empower students on their path to success.

A Commitment to Social Impact

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.

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.

The CommonBond Community

CommonBond not only offers private student loans but also fosters a strong sense of community among its borrowers. Borrowers gain access to a network of like-minded individuals through CommonBond’s “Social Promise.” This community-oriented approach allows students to connect, network, and support each other on their educational and professional journeys.

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.

Pros Explained

• Access to free mentoring: CommonBond’s Money Mentor, a text messaging service, offers borrowers counseling on topics like getting more money for school, managing their budget, and finding internship opportunities.
• No fees on many loans: CommonBond’s loans carry no application fees or prepayment penalties; there are no hidden fees on undergraduate and graduate loans. The medical/MBA financing does come with hidden fees, but these are openly disclosed and figured into the advertised APRs.
• Simple co-signer release: Borrowers just need 24 consecutive months of payments after graduation to apply to drop their co-signers.

Cons Explained

• Co-signer required on undergraduate and graduate loans: Student applicants for undergraduate and graduate loans won’t be approved without a co-signer, even if otherwise eligible.
• Higher repayment amounts on some loans: The in-school, fixed-payment option for dental and medical school students is $100 per month.
• No medical school residency deferment: Medical school students must begin payments of at least $100 per month after their six-month grace period, even as residents (dental school students can defer payments during residency).

CommonBond Student Loans Available

Undergraduate Student Loans

Undergraduate student loans provide the most flexible repayment plans and terms of all CommonBond loans. They also automatically include the Money Mentor.

Graduate Student Loans

Graduate students see many of the same flexibility undergraduate borrowers receive and may opt-in to receive a free Money Mentor.

MBA Loans

No co-signer is required for a CommonBond MBA loan if you’re enrolled in one of about 30 in-network partner schools.2 In addition to loans, CommonBond has offered unique perks to its business school borrowers: an internship program, summer career development series, and trips to Ghana.

Dental School Loans

DMD or DDS students attending any dental school in the U.S. are eligible for a CommonBond dental school loan. These loans have a six-month grace period and the option for residency deferment.

Medical School Loans

Medical students attending one of CommonBond’s 59 partner medical schools in the U.S. are eligible for this loan.2 There’s no option for deferment in residency but you can make monthly payments as low as $100.

Loan Eligibility

CommonBond’s minimum loan amount is $2,000 but you can borrow up to the cost of attendance determined by your school’s financial aid office. This cost includes tuition and fees, books and supplies, room and board, transportation, and personal expenses.

To be eligible for a CommonBond private student loan you must meet a few requirements:

• be a U.S. citizen or permanent resident
• be currently enrolled at least half-time at an eligible school.
• have a minimum credit score of around 660

To determine eligibility, CommonBond also looks closely at an applicant’s free cash flow, meaning how much disposable income you have after paying your monthly debt obligations.

Is Loan Prequalification Available?

CommonBond does offer loan prequalification, meaning you can get a quick preview of your eligibility and what sort of terms you’d qualify for—without it impacting your credit score. To check, click the “Apply Now” button and select “View my rates” under the student loans section. CommonBond will perform a soft inquiry of your credit to estimate your rates.

Loan Fees

CommonBond doesn’t charge application fees or prepayment penalties on any of its loans. Late payments incur a fee of 5% of the unpaid amount of the payment due or $10, whichever is less, and there’s a $5 fee for returned checks.

There is no hidden fee on undergraduate and regular graduate loans. MBA, medical and dental school loans do have a 2% origination fee, but it is reflected in CommonBond’s advertised rates.

Loan Discounts

All loans are eligible for a 0.25% interest rate reduction (reflected in CommonBond’s advertised rates) when you enroll in auto-draft payments.

Repayment Options

CommonBond offers four in-school repayment options valid through a loan’s six-month grace period:

• Full: Full monthly payment of the student loan, principal and interest, beginning while you’re in school.
• Interest-only: Pay only the interest that accrues. This option is only available to undergraduate, graduate, and MBA students.
• Fixed: Allows you to make low fixed payments each month while you’re in school. There is no fixed option for MBA students.
• Deferred: Postpone making payments until the end of your grace period, at which time all interest will be capitalized.

CommonBond offers flexible repayment options on all loans.

Rewards

CommonBond has a referral program where you can earn $200 every time someone takes out a student loan or refinances using your referral link.

Are Co-Signers Required?

Co-signers are required for undergraduate and graduate loans. A co-signer is also required for MBA loans unless you’re enrolled in one of CommonBond’s partner schools and other given criteria.

After graduation and 12 consecutive months of full payment, the borrower can apply to release their co-signer. The student must be the age of majority (16 to 21 years old, depending on which state in which you live) and any period of forbearance interrupts the consecutive payments.

Forbearance and Loan Discharge Options

In the case of financial hardship or medical impairment, you can put your loan payments on pause for three months at a time up to 12 months over the life of the loan.

And in the event of death or total and permanent disability, your CommonBond loan is canceled and will not be passed on to anyone else.

Length of Time for Loan Approval and Disbursement

Loan disbursements are paid directly to your school after CommonBond confirms your enrollment. Confirmation can take anywhere from five days to three weeks. If you took out more than required for official expenses (tuition, room and board), your school will send a refund check.

Is Student Loan Refinancing Available?

CommonBond refinances federal, private, Parent PLUS, and previously consolidated loans with no application, or prepayment fees. You can refinance up to $500,000 with repayment terms of five to 20 years. Rates are currently:

• Variable: 4.60% to 8.25% APR
• Fixed: 4.49% to 7.74% APR
• Hybrid: 4.52% to 7.65% APR

Advertised rates include a 0.25% discount for enrolling in auto-draft and refinanced loans are eligible for up to 24 months of forbearance.

Student loan refinancing is also available to international students with any major U.S. visa who have graduated from a U.S. university.

Customer Service

CommonBond’s U.S.-based care team is available by phone and live chat Monday through Friday, 9 am to 8 pm EST. You can also access them quickly by live chat on their website or email with a response time of less than 24 hours.

According to the Annual Report of the Consumer Financial Protection Bureau Student Loan Ombudsman, CommonBond received three complaints in 2019, mostly about its refinancing service.

Applying for a CommonBond Student Loan

CommonBond uses an online application and each approved application is valid for one academic year. To apply you’ll need:

• Your Social Security number
• School information
• Loan amount requested
• Expected financial aid
• Financial information, including rent or mortgage payments and income

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.