CommonBond has been helping students finance their education since 2012, offering over $2 billion in private loans. This lender focuses on making student loans more affordable and transparent while giving back to the global community. Each new loan funds educational resources for schools in Ghana, combining financial services with social responsibility.
With loan options for undergraduates, graduate students, and refinancing, CommonBond offers flexible terms and competitive rates. Whether you’re preparing for college, advancing your education, or consolidating debt, CommonBond could be a smart choice for your borrowing needs.
Who Is CommonBond Best For?
CommonBond is an excellent option for borrowers seeking competitive rates, flexible repayment terms, and a lender that emphasizes social responsibility. Here’s who might benefit the most:
- Undergraduate and Graduate Students: CommonBond provides private loans with options to cover up to 100% of your school-certified cost of attendance, making it a practical choice for those who need additional funding after exploring federal aid.
- MBA Students: With tailored loans for top MBA programs, CommonBond offers competitive rates and benefits, such as career support, specifically designed for business school students.
- Borrowers Refinancing Student Loans: If you want to lower your interest rate or simplify your monthly payments, CommonBond’s refinancing options could save you money.
- Cosigner-Dependent Borrowers: Students without strong credit history can apply with a cosigner to improve their chances of approval and secure better rates.
Whether you’re starting your education or managing existing loans, CommonBond offers options to meet various financial needs.
Eligibility Criteria for CommonBond Student Loans
CommonBond offers undergraduate and graduate students loans to students who are currently enrolled or will be enrolling in the next upcoming school year. The school must either be a Title IV or non-profit school.
Most applicants must cosign with either a friend, parent, or family member. This cosigner is then committed to making payments on your behalf should you fail to make payments after the six-month grace period.
CommonBond suggests all applicants also submit a Free Application for Federal Student Aid (FAFSA) before applying for private student loans. This ensures that borrowers receive any potential free or subsidized financial aid from the government, so they don’t take on more student loan debt than they need.
Borrowers must be a U.S. citizen, permanent resident, or valid visa holder. Either the applicant or the cosigner must have a minimum 660 credit score. You’ll also need to provide the following:
- Proof of address
- Proof of citizenship
- Photo ID
Currently, CommonBond does not serve borrowers in Idaho, Mississippi, Nevada, or Vermont.
Exploring CommonBond’s Diverse Loan Options
CommonBond offers four types of student loans, each of which offers various loan term options, as well as a fixed or variable interest rate. No matter which you choose, each private student loan comes with a six-month grace period after graduation or termination of enrollment. This means you have six months before any payments are due.
Undergraduate Loans
With a CommonBond undergraduate loan, you could potentially save money and have a stress-free college experience. You can potentially get a private student loan from CommonBond that covers up to 100% of the school-certified cost of attendance. They have a few loans to choose from, lasting either 5, 10, or 15 years. You can also pick whether you want a variable rate or fixed-rate loan.
If you’re fresh out of high school, it’s likely you have little to no credit history. This means you’ll probably have to cosign with someone close to you who has a good credit score. Once you do, CommonBond will contact your school’s financial aid office to make sure that you are or will soon be a student with the college or university.
Graduate Student Loans
CommonBond’s graduate student loans stand out for their tailored approach. These loans cater to diverse graduate programs with higher borrowing limits and flexible repayment terms, considering the specific financial scenarios of grad students.
They offer both fixed and variable interest rates, along with student-friendly options like interest-only or deferred payments. Additionally, CommonBond enriches their graduate loan packages with unique benefits, such as career counseling and networking opportunities, adding significant value beyond financial support.
MBA Loans
Currently, CommonBond’s rates for MBA loans may actually be lower than rates offered by the government. For a ten-year $150,000 loan, borrowers who go through CommonBond could save about $27,775, compared to taking out federal loans. Loan terms are 10 or 15 years, and you must attend one of the eligible schools below:
- Brigham Young University-Provo – Marriott
- Carnegie Mellon University – Tepper
- Columbia University – CBS
- Cornell University – Johnson
- Dartmouth College – Tuck
- Duke University – Fuqua
- Emory University – Goizueta
- Georgetown University – McDonough
- Harvard University – HBS
- Indiana University Bloomington – Kelley
- Massachusetts Institute of Technology – Sloan
- New York University – Stern
- Northwestern University – Kellogg
- Rice University – Jones
- Stanford University – GSB
- The University of Texas at Austin – McCombs
- University of California, Berkeley – Haas
- University of California, Los Angeles – Anderson
- University of Chicago – Booth
- University of Michigan – Ross
- University of Minnesota – Carlson
- University of North Carolina at Chapel Hill – Kenan-Flagler
- University of Notre Dame – Mendoza
- University of Pennsylvania – Wharton
- University of Southern California – Marshall
- University of Virginia – Darden
- University of Washington – Foster
- Vanderbilt University – Owen
- Yale University – SOM
Your Loan Options: Fixed, Variable, and Hybrid Rates Explained
Understanding the different types of interest rates and loan terms is crucial when selecting the right student loan. CommonBond offers options including fixed, variable, and hybrid interest rates, each with unique implications for borrowers.
- Fixed interest rates remain constant over the life of the loan, providing predictable monthly payments and long-term cost certainty. This is ideal for borrowers who prefer stability and a set budget.
- Variable interest rates fluctuate based on market conditions, which means your monthly payments could increase or decrease over time. While they often start lower than fixed rates, there’s a potential risk of paying more over time if interest rates rise.
- Hybrid interest rates, available exclusively for student loan refinancing, start with a fixed rate for a specified period before switching to a variable rate. This option can be beneficial for those who want initial payment stability but are comfortable with some level of risk in the later stages of their loan term.
Each of these options has implications for the long-term cost and management of your loan. It’s important to assess your financial situation and risk tolerance when choosing the right type of interest rate for your student loan.
Refinancing Options with CommonBond
If you want to simplify your monthly payments and pay off your existing student loans more quickly, CommonBond also offers student loan refinancing. You can refinance private or federal student loans up to $500,000 for 5, 7, 10, 15, or 20 years.
Borrowers who choose to refinance student loans with CommonBond save on average about $323 a month. Should you need to put off monthly payments through forbearance, qualifying borrowers can defer payments for up to 24 months throughout the entire life of the student loan.
Interest rates for refinancing student loans are lower than federal student loans but don’t share the robust protections that federal loans offer. While you will be forfeiting student loan forgiveness, CommonBond does allow forbearance during economic hardship.
If you’re a graduate student who wants to take responsibility for Parent PLUS loans and become the primary borrower, you can do that with student loan refinancing.
CommonBond’s Fees and Interest Rates
With CommonBond, there are no origination fees, application fees, or prepayment penalty fees for co-signed undergraduate loans. However, for MBA, medical school, and dental school loans, there is a 2% origination fee.
The interest rate you receive depends upon your unique financial situation, credit history, loan term, and whether you select fixed, variable, or hybrid (only available for student loan refinance borrowers).
CommonBond Student Loan Process
Applying for a student loan with CommonBond is designed to be quick and straightforward. Here’s a step-by-step guide to help you navigate the process:
Step 1: Prepare Before Applying
Before applying for a CommonBond loan, submit the Free Application for Federal Student Aid (FAFSA) to explore grants, scholarships, and federal loans that don’t need to be repaid or offer more borrower protections. Exhausting these options first can minimize your overall debt.
Additionally, take time to research and apply for external scholarships to further reduce the amount you’ll need to borrow.
Step 2: Gather Required Information
To apply, you’ll need:
- Proof of address
- Proof of citizenship or valid visa status
- A photo ID
- A cosigner (in most cases)
If you’re fresh out of high school, a cosigner with a strong credit history can improve your chances of approval and help secure better rates. Make sure your cosigner understands their responsibilities before submitting the application.
Step 3: Submit Your Application
Complete the application online in just a few minutes. CommonBond’s platform is user-friendly and requires minimal paperwork to get started. During the process:
- Enter your personal details and loan preferences.
- Provide your cosigner’s information if applicable.
- Review and electronically sign the loan disclosures.
Step 4: School Certification
Once your application is approved, CommonBond will verify your enrollment at the school listed in your application. Your school must certify the loan amount to ensure it aligns with your cost of attendance.
Step 5: Loan Disbursement
After certification, CommonBond disburses the funds directly to your school. Once tuition and fees are covered, any remaining balance is sent to you for additional educational expenses.
Key Tips for a Smooth Process
- Borrow Only What You Need: Avoid over-borrowing, as every dollar borrowed must be repaid with interest.
- Check for Errors: Double-check all application details to prevent delays.
- Keep Your Cosigner Involved: Ensure your cosigner is available to provide any additional information if needed.
With a streamlined application process and efficient loan disbursement, CommonBond helps students access the funds they need with minimal hassle.
Unique Features of CommonBond Student Loans
CommonBond offers several borrower-friendly features that make it stand out from other private lenders. These benefits are designed to provide flexibility, financial security, and a meaningful social impact.
Flexible Forbearance Options
If you cannot make your monthly payments, CommonBond allows you to request forbearance, pausing payments for up to 12 months over the life of the loan. Borrowers refinancing student loans may qualify for an extended forbearance period of up to 24 months.
During forbearance, interest continues to accrue, which can increase your loan balance. To minimize the impact, consider making interest-only payments whenever possible. This option is particularly useful during unexpected financial hardships, such as job loss or medical emergencies.
Cosigner Release Program
For borrowers who needed a cosigner to qualify, CommonBond offers a cosigner release option. After making on-time payments for at least two years, you can apply to remove your cosigner from the loan agreement.
This feature helps both you and your cosigner by relieving them of any financial responsibility for the loan, giving everyone peace of mind as you establish financial independence.
No Prepayment Penalties
CommonBond allows borrowers to pay off their loans early without incurring prepayment penalties. This flexibility means you can make extra payments or pay off your loan balance ahead of schedule, potentially saving money on interest over the life of the loan.
Commitment to Social Impact
Through its partnership with Pencils of Promise, CommonBond funds educational initiatives in Ghana. For every loan originated or refinanced, the company helps equip schools, teachers, and children with the resources they need to support a strong learning environment.
Referral Incentives
CommonBond rewards borrowers who refer friends or family. Each successful referral earns you $200, deposited directly into your PayPal account. After signing up for the referral program, you can share your personalized link, and every time someone takes out a loan through it, you receive the bonus.
Bottom Line
CommonBond is more than just a private student loan provider—it’s a lender that combines competitive rates, flexible options, and a strong commitment to social impact. With loans tailored for undergraduates, graduate students, and those looking to refinance, CommonBond appeals to a broad range of borrowers.
The streamlined application process and user-friendly digital platform make it an efficient and convenient choice, while features like forbearance options and cosigner release provide added flexibility. Beyond its financial offerings, CommonBond’s dedication to supporting education globally adds a unique, human element that sets it apart from other lenders.
Whether you’re funding your education or refinancing existing loans, CommonBond offers a well-rounded solution with a purpose-driven mission.