Commonbond is a popular private student loan lender for undergraduate and graduate degrees. Commonbond also offers an option to refinance student loans.
Before you borrow private loans, exhaust all other resources to cut the cost of college. Federal student loans are preferred over private student loans because they offer many benefits, including:
• Lower interest rates
• Subsidized loans, where interest is paid during a deferment
• Loan repayment plans where loan payments are based on your income
• Loan forgiveness options
• Ability to pause payments if you lose your job
If you decide a private student loan is right for you, here is what you should know about Commonbond. Always remember to borrow student loans responsibly.
Commonbond Private Student Loans
AutoPay Discount: Get a 0.25% interest rate reduction if you sign up for automatic payments.
Fees: There are no fees for application, origination or prepayment.
CommonBond charges a late fee of 5% of the unpaid amount of the payment due or $10.00, whichever is less. Borrowers will also be charged a return check fee of $5.00, subject to state law restrictions.
Minimum Loan Amount: $2,000
Maximum Loan Amount: Borrow up to 100% of your school’s cost of attendance, as determined by the financial aid office. The lifetime borrowing limit is $500,000.
Loan Terms Available: Repay your loan in 5, 10 or 15 years. The smaller your loan term, the larger your monthly payment will be, but the less you will pay on interest.
Cosigner Required: Commonbond requires a cosigner for approval. However, cosigner release is available.
A borrower is eligible to apply for cosigner release after graduation and 24 consecutive months of on-time full payments. Borrowers must be the age of majority (18-21 years old, depending on the state in which you live). They must also meet the current underwriting criteria under the loan program at the time of applying for cosigner release. Any period of forbearance interrupts consecutive payments.
Commonbond Repayment Options
Commonbond offers four options for making payments during the in-school period.
- Full Deferment: Postpone student loan payments until graduation. Interest will accrue during the in-school deferment and will be capitalized at the end of the deferment period.
- Fixed monthly payment of $25: Make fixed payments of $25 each month per loan while in school. Any unpaid interest will be capitalized at the end of the fixed monthly payment period.
- Interest-only payment: Make interest-only payments each month while you are in school.
- Full monthly payment: Fully amortized monthly loan payments (principal plus interest) begin while you are in school.
Grace Period: Commonbond offers a six-month grace period after graduation or leaving school.
Forbearance: CommonBond offers forbearance to students who encounter economic hardship after graduation.
Money-Mentoring: CommonBond loans come with a free Money Mentor – a person who can help you get more money for school, manage your budget, find internship opportunities, create a budget, answer questions about the FAFSA, map majors to career pathways, responsibly build credit, and more.
Visit Commonbond’s website to learn more.
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