CommonBond Student Loans Review 2020

CommonBond is an online student lender, who started operations in 2012. They provide both personal and refinance loans to current and former students.

There are two main reasons why this company is extremely popular with student loans.

The first reason is that they have one of the longest forbearance periods for refinanced loans.  This is 24 months, and the other reason is that they allow the use of a co-signer, in case the borrower doesn’t have a good credit report.

A co-signer is someone with good credit that is willing to take complete responsibility for your loan. They usually sign an agreement stating that they shall be held liable in case you default on the loan.

CommonBond loans are basically perfect for anyone who is looking for some breathing room from high-interest rates because they have low rates and excellent terms and conditions for their loans.

As many other lenders, they also go beyond the credit score in their approval process and look at the individual in great detail in regard to issues such as their current job status, their earning potential and how they have been handling their money.

CommonBond Loan Terms And Rates

Rates and TermsRefinancing LoanPrivate Loans
Loan Amounts 
  • $5,000 to $500,000
  • $2,000 to $500,000. Depending on your total cost of attendance.
 Fixed APR
  •  3.12 – 6.45%
  • 5.45 – 9.74%
 Variable APR
 
  • 1.77 – 6.25%
  • 3.31 – 9.29%
Fees 
  • Late Fees: 10% or $15, whichever is lower. This is charged 15 days after missing your payment.
  • Origination fee: None
  • Late fee: None
  • Prepayment fee: None
  • Late Fees: 10% or $15, whichever is lower. This is charged 15 days after missing your payment.
  • Origination fee: None
  • Late fee: None
  • Prepayment fee: None
Funding Time 
  • 1-3 working days
  • 1-3 working days
Loan Terms 
  • 5-20 years
  • 5-15 years
Repayments 
  • The repayments are done monthly.
  • Academic and Military deferment available.
  • Forbearance – 24 months.
  • Co-signer release after 36 payments.
  • Internship and residence can defer payment with a job offer letter.
  • Immediate repayment after disbursement is allowed.
  • Military and academic deferment available.
  • They have allocated fixed payments of $25 each month while in school and this also applies to the grace period.
  • Interest-only payment option, but only while you are in school.
  • Students in school get 6 months grace period.
  • Academic and Military deferment available.
  • Forbearance – 12 months.
  • Co-signer release after 24 payments.
 Soft Credit Check?
  • Yes
  • Yes
How to Qualify 
  • You should have a minimum credit score of at least 660.
  • They do not specify the income level.
  • You can qualify for the loan seven years after filing for bankruptcy.
  • You should have a minimum credit score of at least 660.
  • They do not specify the income level.
  • You can qualify for the loan seven years after filing for bankruptcy.
Best For
  • People who have a good credit score of 660 and above, and with a consistent source of income.
  • Students who did not qualify for a federal student loan.
  • Students who did not receive enough federal loans and wish to top up their loans to cater for college costs.
 Can transfer Parent plus Loan to Child
  • Yes
  • Yes

CommonBond Loan Requirements

Here are the main requirements for both refinancing and private loans:

RequirementsRefinancing Private Loans
Minimum credit score660660
Minimum incomeNot disclosedNot disclosed
CitizenshipMust be a US citizen or holder of a permanent residenceMust be a US citizen or holder of a permanent residence
LocationIt is ideal for everyone except people living in Nevada and Mississippi.It is ideal for everyone except people living in Nevada and Mississippi.
Must have graduated? Part-time students?Should be enrolled at least part of the time in school and pursuing a bachelor’s degree in one of the named non-profit or IV schools.Should be enrolled at least part of the time in school and pursuing a bachelor’s degree in one of the named non-profit or IV schools.
Co-signer?Yes.Yes.
Co-signer release?Yes. After 36 on-time paymentsYes. After 24 on-time payments
Debt to Income Ratio MaxUn-disclosedUn-disclosed
DefermentYes. In-school deferment and Military DefermentYes. In-school deferment and Military Deferment
ForbearanceYes. 24 monthsYes. 12 months
Bankruptcy?Yes. After 7 years.Yes. After 7 years.

Refinancing with CommonBond Student Loans

Refinancing is the process of replacing one or more loans with a low-interest single loan that is enough to cover all of the existing liabilities.

This is the best option if you wish to lessen the burden of loan repayment and high-interest rates.

CommonBond refinancing loans are great for students who wish to consolidate their loans and eliminate some of their loans.

They have attractive and low-interest rates, plus they also allow the use of a co-signer in case your credit score is not up to par.

If you had previously declared bankruptcy, you can still qualify for a CommonBond Refinancing Loan if you wait for seven years.

These are some of the best loans that help students pay up their student loans fast, and opens for them opportunities to take out more loans as they mature financially.

It is, however, advisable to only take out what you need. Taking loans that are not necessary shall only put you in a terrible position of having too much debt that you cannot pay, and in addition, it shall decrease your credit score and limit your abilities for getting more credit in the future.

Pros & Cons of Using CommonBond Loans

Before making a final decision, it’s important you’ll be aware of both the pros & cons. Let’s start with the benefits:

Interest Savings

According to Forbes.com, CommonBond loans have the potential of saving you up to $14,000 each year. This is because of their low-interest rates.

Underwriting Process

They have a much better-rounded approach to their underwriting procedures.

This is because their interest rates are not solely dependent on your credit score alone. They look deeper into your job status, your overall financial position and credit history, plus if you have a co-signer, they will check the same for them also.

Flexible Terms

Their terms are extremely flexible and they offer three rate financing options – Hybrid, Variable and Fixed. The fixed interest rate is high, but it is ideal for people who have a predictable payment plan.

The variable rate is low, but it is also high risk and likely to go up in relation to the market. The hybrid rate is the most unique of all and has a loan term of 10 years. The first five years have a fixed rate, while the other five have a variable rate.

No Hidden Costs

Their loans are customary for most lenders, and they do not charge any extra fees on the loans.

There are no charges for origination or application, but for late payment, you shall be charged either $10 or 5%, whichever one is lower.

AutoPay Discounts

If you choose to use auto-pay for your loan payments, you shall receive a 0.25% discount on your rate, which further helps in saving.

Forbearance

They have a very long forbearance period of 24 months.

This option helps people who go through hardships and are unable to pay their loans. This is however done in three months increments over the life of your loan.

Deferment

If you wish to defer your loan repayment from the point of issue, you can do so.

For students who are currently in school, they can request for some time before they start paying their loans, and also people in the military are entitled to deferment.

Co-Signer Option

Students with a low credit score can still apply for a CommonBond loan if they have a co-signer willing to take up the responsibility of the loan. This is perfect as it makes the loans open to everyone.

Sense of Community

The company has very many clients who have formed a big community that helps others with advice on their careers and they also hold panels and events so they can come together and help each other.

This can work great if you need to make some important decisions or when looking for good contacts that can lead to bigger things in the future such as jobs after graduation.

Bonus

If you refer a client to take a CommonBond loan, you are entitled to a $200 cash bonus.

State Limits

The loans are not available to people living in Nevada and Mississippi.

This means that students in these two states are limited from refinancing their student loans.

No Weekly Payments

Most lenders allow their students to repay their loans on a weekly basis.

Students find it easy to pay a little at a time, as it lowers their loan amounts greatly. CommonBond doesn’t have this option for students.

Repayment Options

CommonBond offers a couple of repayments options, depend on your personal situation

Deferment

This option is available to student borrowers who wish to defer their payments when in school. It is also open for military personnel who are active.

Forbearance

As a borrower, you can receive 24 or 12 months forbearance in three months increments over the life of the loan. It is also available to students who are residents or in fellowship programs.

Payments

Payments are made monthly as per the interest rates given to the students. For Private student loans, the borrowers are supposed to repay $25 each month while in school, even during the grace period.

Discharge

You can be discharged from loan payment in case of death or disability. This means that your loan shall be completely forgiven.

Co-signer Release

Co-signers can be released after 36 or 12 months of timely payments.

How To Apply For a CommonBond loan

Here is the procedure:

1. Fill Out The Form

This is the first step. You shall be required to fill out a short form with general information about yourself.

This includes details such as; name, residence, income level, highest degree award, name of your school and the amount of money you need.

Additionally, your social security number should also be included.

2. Receive Your Estimated Interest Rate

When they receive your application, they shall first conduct a soft credit pull and check your credit score.

This will guide them into giving you an ideal interest rate, based on the information they shall receive.

3. Official Application

Once you are given an interest rate, you shall then decide on whether you wish to continue with the application or not.

If you do, then you will officially apply for the loan and attach the necessary support documents such as any previous loan history, proof of your residence, etc.

4. Receiving an Offer

The company shall then do a final credit check which shall be a hard pull.

This will help them in assigning you the correct rate, and also the loan terms.

5. Approval

They shall then approve the loan and proceed to help you pay off all of your outstanding student loans.

Customer Reviews And BBB Rating

CommonBond loans are usually serviced by First Mark servicing company. This means that they will assign this company all issues relating to your loan.

Therefore, if you receive a call from them, please note that it is not a scam. This is a legit company that has been contracted by CommonBond to handle all student loans.

Their in-house customer service is also active and they receive complaints from customers which they handle immediately.

According to the Better Business Bureau – BBB, CommonBond has a B+ rating. BBB is a non-profit company that gives ranks to different businesses using the Accredited Business system. These ranks and ratings help you as a customer when dealing with the companies.

Their rating system is usually from A-F.

B+ is a good rate for CommonBond because it means that the company has been handling its customers well. They have so far received 9 complaints which have all been responded to.

Conclusion

If you have been considering refinancing your loans or taking out a private student loan, then CommonBond is a company worthy of consideration, due to their better than average loan terms and affordable interest rates.

They also give huge loans according to your level of income and repayment abilities, and the option of having a co-signer is extremely attractive to most students because many of them rarely have a credit history yet.

This company has had excellent customer reviews and comes highly recommended especially as a refinancing option.