Commonbond is worth considering if you are looking for a lending company that caters to financing a specialized degree. That said, this Commonbond student loan review will provide you the essential information you need to know.
According to a report published at Forbes online, as of 2019, student loan debt in the United States has been the highest ever recorder.
The latest student loan debt statistics show that there are a total of 45 million borrowers in the country as of 2019 who collectively owe more than $1.5 trillion in student loan debt.
Based on the current number, student loan debt has become the second-highest consumer debt category in the country — following mortgage debt, and higher compared to credit cards and auto loans.
Furthermore, experts believe that the number will continue to rise in the years to come particularly this year with the recent crisis the world is facing. With people losing jobs, losing means to earn, the more likely that they will resort to getting loans.
Now, there are a lot of lending companies out there providing various student loan options. However, there are only a few that cater to specialized degrees such as a medical, dental, or MBA degree. Let’s be realistic, these degrees need a lot of money to get done.
Commonbond, a private lender that underwrites and originates all of its loans, is one of the few lending companies that provide student loan borrowers with the option to borrow money particularly to pursue a specialized degree.
If you are looking for one, you should check out what Commonbond has to offer, and see for yourself if it’s worth dealing with or not.
To help you assess, we are going to share with you essential information about Commonbond student loans for your reference.
In this Commonbond student loans review, we are going to particularly answer the following most commonly asked question about the lending company:
- Who is Commonbond?
- What are the student loans offered by Commonbond?
- What do borrowers need to know about Commonbond student loans?
- Who qualifies for a Commonbond student loan?
- How to apply for a Commonbond student loan?
- What are the pros and cons of Commonbond student loans?
Before moving on to our Commonbond student loans review, we thought you’d like to learn more about getting a student loan. In the video below by The Financial Diet, you will find everything you need to know about student loans. Check it out by clicking the play button.
WHO IS COMMONBOND?
Commonbond was launched in 2013 and is currently headquartered in New York, New York.
Commonbond was built as a private lending company dedicated to providing student loans and refinancing. Although it primarily targeted MBA students when it started, over the years, the company has expanded its products and services including other loan programs for undergraduate, graduate, and medical and dental school.
The company provides loans not only to individuals but also through businesses that want to help employees fund their children’s higher education.
While there are a lot of lending companies out there providing student loans, what makes Commonbond unique is that it is the first financial company that committed to a one-for-one model of business. This means, for every degree fully funded through the company, Commonbond, in return, will fund the education expenses of a needy student in a developing nation.
Furthermore, Commonbond has a partnership with a nonprofit organization called, Pencils of Promise wherein they provide schools, teachers, and technology to thousands of students in Ghana.
It’s probably safe to say that borrowing money from Commonbond, and allowing the company to help you fulfill your degree means being able to help as well to a needy student from somewhere in the world.
It’s like ripples of goodness spreading all throughout the world, one student at a time, right?
WHAT ARE THE STUDENT LOANS OFFERED BY COMMONBOND?
As mentioned, Commonbond does not only offer specialized education student loan options but more.
In particular, Commonbond student loan options are as follows:
- Undergraduate Student Loans
- Graduate Student Loans
- MBA Loans
- Dental School Loans
- Medical School Loans
Here’s a quick glance on what you can expect from each of the student loan options, as well as how each varies from one another:
Now, let us talk about each of these loans to have a better understanding —
Undergraduate Student Loans
Of all the student loan options offered by Commonbond, the undergraduate student loans have the most flexible payment plans, as well as loan terms. More so, Commonbond automatically includes the Money Mentor into this account. Money Mentor refers to the financial advisor assigned to every student loan borrower.
Graduate Student Loans
Similar to undergraduate student loans, graduate student loan borrowers may experience the same kind of flexibility. Borrowers may also opt to receive a free Money Mentor.
Unlike other MBA loans offered by other lending companies, Commmonbond does not require a co-signer for their MBA loan if you are enrolled in one of the company’s in-network partner schools (there are about 30 of them).
Apart from the loan, Commonbond also offers one-of-a-kind perks to its business school borrowers like summer career development series, an internship program, as well as trips to Ghana.
Dental School Loans
Anyone who is a DMD or DDS student attending any dental school in the country is qualified for dental school loans offered by Commonbond, which comes with a six-month grace period, as well as the option for residency deferment.
Medical School Loans
Wherever you are in the U.S., as long as you are a medical student from one Commonbond’s 59 partner medical schools across the country, you automatically qualify for this type of student loan. Unlike the previous one though, the company does not offer deferment in residency. However, Commonbond lets you pay a monthly payment for as low as $100.
WHAT DO BORROWERS NEED TO KNOW ABOUT COMMONBOND STUDENT LOANS?
Now that you already know who Commonbond is, what it does, and the different student loan options it provides, this time around in our Commonbond student loans review, we are going to share with you the other very important details a borrower must know before sending a student loan application to Commonbond.
In particular, we are going to talk about the following:
- Loan Amount
- Interest Rates
- Loan Terms
- Loan Fees
- Loan Discount
- Repayment Options
- Forbearance/Discharge Options
- Student Loan Refinancing
- Disbursement of Funds
- Customer Service
The first thing that we thought you should know is the amount of money that you can borrow from the company. With Commonbond, student loan borrowers can avail of up to $500,000 lifetime borrowing limit. If you look at the amount, it definitely is enough or more to fund specialized education like dental, medical, as well as an MBA degree.
The rates vary depending on the type of student loan you will apply for. For your reference, see below table:
|Degree||Fixed APR||Variable APR|
|Undergraduate||5.45% to 9.74%||1.43% to 7.41%|
|Graduate||5.40% to 9.74%||1.33% to 7.41%|
|MBA||5.37% to 7.2%||3.15% to 4.87%|
|Medical||5.56% to 6.76%||3.46% to 4.64%|
|Dental||5.33% to 6.98%||3.23% to 4.87%|
Furthermore, Commonbond offers refinancing option as well, which charges flexible loan rate options that range from 5.45% – 9.74% (fixed), 1.44% – 7.42% (variable), and 4.25% to 6.10% (hybrid). As with hybrid loans, the rate is fixed for the first half of the term, and then it automatically switches to a variable rate for the last half of the term.
Borrowers of Commonbond student loans can select from flexible loan terms ranging from five- to 20-year terms depending on the loan type. See below list for your reference:
- Undergraduate and Graduate Loans: 5, 10, or 15 years
- MBA Loan: 10 or 15 years
- Dental and Medical School loans: 10, 15, or 20 years
The lending company, as mentioned, also offers different repayment options to fit the borrower’s budget. It is also important to note that payment starts 30 to 60 days after the disbursement of funds.
Unlike other lending companies that offer student loan options, Commonbond does not charge application fees or prepayment penalties on any of the loan it offers. However, Commonbond charges a late payment fee, which amounts to 5% of the unpaid amount of the payment due or $10, whichever is less. The company also charges a $5 fee for any returned checks.
You may be wondering why there is such a thing as a loan discount on our list, but that is because Commonbond offers it. Yes, for real!
All loans made via Commonbond are qualified for a 0.25% interest rate reduction (which is reflected in Commonbond’s advertised rates) when borrowers enroll in auto-draft payments.
Apart from discounts, Commonbond also has a rewards program.
The lending company has a referral program wherein you, the borrower can earn $200 every time someone goes through a successful student loan or refinancing application using your referral link.
One thing we like about Commonbond is that it offers a variety of repayment options. To be exact, Commonbond offers four in-school repayment options that are valid through a loan’s six-month grace period.
Here are the different options:
- Full – This refers to paying a full monthly payment of a student loan, principal, as well as interest, which starts while you’re in school.
- Interest-only – This allows borrowers to pay only the interest that accrues. This is available to undergraduate, graduate, as well as MBA students only.
- Fixed – This option allows borrowers to make low fixed payments every month while the borrower is still in school. Fixed payments amount to $25 per month for both undergraduate and graduate students, and $100 per month for those taking up dental or medical school. Unfortunately, there is no fixed option available for MBA students.
- Deferred – This refers to the postponement of payments until the end of the borrower’s grace period. Only by the will, all interest will be capitalized.
Another reason to like about Commonbond student loans is the fact that it does of forbearance and discharge options.
If in case the borrower goes through financial hardship or medical impairment, the borrower can put his or her loan payments on pause for three months at a time for up to 12 months over the life of the loan.
In the event of death or total and permanent disability, a borrower’s loan will be canceled and will not be passed on to anyone else.
Student Loan Refinancing
Commonbond offers refinancing options, too, as we have mentioned earlier. The lending company refinances federal, private, Parent PLUS, as well as previously consolidated loans without charging application, origination, or prepayment fees.
The company offers refinancing of up to $500,000 worth with repayment terms of as short as five years or as long as 20 years.
Similar to regular student loan types offered by the company, its refinancing option also includes a 0.25% discount for enrolling in auto-draft. Refinanced loans are also qualified for up to 24 months of forbearance.
Furthermore, the company’s refinancing services are also open to international students with any major U.S. visa who graduated from a university in the country.
Disbursement of Funds
Once Commonbond confirms your enrollment, the loaned amount will be automatically disbursed directly to your school. Usually, confirmation can take between five days to three weeks.
In case you borrowed more than required for official expenses like tuition, board, and room, your school will be the one to send a refund check.
If you need more information about its products and services, or if you have any questions we were not able to provide an answer on, you may contact Commonbond via phone or live chat from Monday through Friday from 9 am to 8 pm EST.
You may also access them through live chat on their website or email. A response is usually provided within less than 24 hours.
WHO QUALIFIES FOR A COMMONBOND STUDENT LOAN?
Of course, this Commonbond student loans review will not be complete if we will not provide you information regarding who qualifies for a student loan at Commonbond, and who does not.
The lending company provides loans of at least $2,000 up to as much as $500,000 — or up to the cost of attendance as determined by the borrower’s school’s financial aid office. The cost typically includes tuition and fees, room and board, transportation, books, and supplies as well as other personal expenses.
Now, the important question is, who qualifies for a Commonbond student loan?
To qualify for a Commonbond private student loan, you must be able to meet the following requirements:
- Must be a U.S. citizen or a permanent resident card holder
- Must be currently enrolled at least half-time at a qualified school
- Must have a minimum credit score of 660
Furthermore, the lending company also looks closely at an applicant’s free cash flow. This means Commonbond looks into how much disposable income you have after you have paid your monthly debt obligations.
HOW TO APPLY FOR A COMMONBOND STUDENT LOAN?
Commonbond’s application process is pretty simple and easy. The company uses an online application, and every approved application is valid for one school year.
When applying for a student loan, make sure to keep the following handy:
- Your school information
- Social Security Number
- The amount of money requested
- Expected financial aid
- Your financial information, which includes your income, as well as your rent or mortgage payments
WHAT ARE THE PROS AND CONS OF COMMONBONS STUDENT LOANS?
We are almost done with our Commonbond student loans review. This review will not be complete, however, we are not going to provide you with the pros and cons of Commonbond student loans.
Here they go —
- Minimal Fees and Charges – Apart from late payment charges and check return fees, Commonbonds has no other fees or charges. It does not have an application or origination fee, as well as a prepayment penalty, which means you can pay off the loan any time prior to the maturity of the loan without having to worry about getting charged.
- Access to Money Mentor – Commonbond offers free mentoring to borrowers. It’s basically a text messaging service that offers borrowers counseling on various topics like getting more money while in school, budgeting, as well as about finding internship opportunities.
- Simple Co-Signer Release – Unlike other lenders, borrowers only need 24 consecutive months of payments after graduation to be able to apply to drop their co-signers.
- Forbearance of 24 Months – As compared to other lenders, Commonbond offers forbearance of 24 months, which is definitely way longer than other lenders out there.
- Online Preapproval – Commonbond offers an online preapproval process that won’t affect your credit score.
- Higher Repayment Amounts – Although not all, higher repayment amounts are particularly evident with an in-school, fixed-payment option for dental and medical school students, which amounts to $100 per month.
- No Medical School Residency Deferment – After their six-month grace period, even as residents, medical students are required to start payment of at least $100 per month.
- Requires Co-Signer for Undergraduate and Graduate Loans – Commonbond requires a co-signer for student applicants for undergraduate and graduate loans. Otherwise, the loan will not be approved.
- Loans Not Available in Mississippi and Nevada – While it Commonbond student loans are available to most states, it is not in Mississippi and Nevada.
FINAL THOUGHTS ON COMMONBOND STUDENT LOANS REVIEW
As student loans continue to rise in the country, we’d like to think of it in a positive way. That means a lot of students today are doing their best to finish school – whether it be getting an undergraduate degree, a graduate degree, or a specialized degree.
While there are a lot of options out there, we thought Commonbond student loans do offer one of the best deals – especially when it comes to specialized loans.
So, how do you find Commonbond now after learning all the information we shared?