CommonBond Review – A Student Loan Lending Platform
Commonbond is an online lending platform for students. Individual lenders and lending institutions are given access to people who need student loans. The hope is that students and lenders may create an agreement where the student ends up with a loan. The Commonbond founders hoped that students may be able to save money on their loans if they use Commonbond lenders rather than larger or government lenders.
My Struggle With The Idea Of Commonbond
Remember the Hillary and Trump election where Hillary promised a free college education for everybody despite the fact that the US is 20 trillion in debt? Commonbond reminded me of her speech with this piece of logic, “Our loans cost less, so fewer students will struggle to repay them.” The logic is as faulty.
Just like Hillary’s speech, it seems that Commonbond have missed the point. Students are struggling to pay their debts because colleges and Universities have higher fees and higher profit margins than ever in the history of the world, which is due to the government making it so easy to get a student loan that is the equivalent value of a mortgage. Plus, thanks to the ease at which students can take out student loans of over $100,000, they are able to casually drop out of college whenever they like and then dodge their repayments until the loan is wiped clean.
Maybe I would have more sympathy for CommonBond’s theory if college and Universities were banned from charging so much, and banned from justifying it by hiring things such as “Tolerance patrols” or “Safezone monitors,” or stopped them from creating courses that do not help students get a real job, such as degrees in the history of TV, Parapsychology, queer musicology, gender studies, and studies of unidentified flying objects, (these are not jokes, look them up).
The Functions Or Benefits Of Commonbond
- Commonbond charges you interest and an origination fee. The size of your loan is determined by how much your college is going to charge you. Additionally, Commonbond will minus any help you are getting elsewhere, such as from grants, financial aid and other loans. You are legally obliged to tell the Commonbond company what other forms of help you are getting.
- You may apply for graduate student loans, MBA student loans and undergraduate student loans. Commonbond also allows you to pick a variable rate interest or a fixed rate interest. The variable rate loans start out lower, but the interest rates are going to vary over time.
- The way you repay is going to vary. You cannot pull the old trick where you “Earn so little that I don’t have to pay back the loan”.
- You may defer your payments for six months after your graduation. You may choose fixed monthly payments where you pay $25 per month until six months after you have graduated. All payments are interest-free while you are in college, and you may start paying full principle and interest payments right away.
- Don’t get too excited about the friendlier repayment options because they always result in a higher interest rate. Even if you agree to pay as little as $25 per month while in college, you will get a lower interest rate when you graduate. Plus, you should do as you can to benefit from the interest-free period that occurs while you are in college.
- Commonbond will allow you to refinance your student loan(s). They have options for both parents and students. If you are looking to actually repay your loans and not skip out on them for 20 years until they are wiped, then you should look into a Commonbond refinancing. Commonbond can save some students a lot of interest, especially if the student made a hasty choice when he or she got his or her first student loan.
- Refinanced student loans are given out based on a number of factors, including your credit rating. If you have left college and you have managed your credit really well, then you may be able to save a bundle with your student loan refinancing. There are hybrid loan options where you get a fixed rate for five years and then a variable rate for five years.
Eligibility Terms For CommonBond Financing
- You must be taking out a loan for an MBA loan, undergraduate student loan or a graduate student loan.
- If you are refinancing with Commonbond, then you need to have a credit score of at least 660.
- At the time of writing, Commonbond told us that if you are taking out an MBA student loan, then they will check credit score and it has to be at least 660.
- Commonbond does allow you to take out a loan where you need a credit score of 660 if you have a suitalby credible co-signer.
- If you are currently a student in an undergraduate program or a graduate program, then you will need a co-signer no matter what your credit score is.
- You must be a permanent citizen of the US, and/or a permanent resident.
- You have to be taking a course, attending or have attended a not-for-profit University/college (Title IV accredited). Or, you must be taking a graduate program that has been approved by Commonbond.
- Graduate or undergraduate students must be enrolled in an eligible school with at least half-time weekly hours.
- Commonbond says that MBA students must be enrolled on a full-time basis with an eligible school.
Commonbond – Pros
- Commonbond allows you to pick a variable rate, a fixed rate, or a hybrid rate.
- They offer different ways to repay where your loan costs you less if you start rpyy repaying while you are still in college.
- The way that the repayments’ system is set up will encourage you to start paying off your student loans while still in college, which is what Warren Buffet did, and he became one of the richest men in the world.
- Students who have graduated college and have worked on their credit rating may be able to score a far cheaper student loan if they refinance it with Commonbond.
- The application process is simple because it is obvious that somebody with a bit of common sense has gone through the application and made it more user-friendly.
- As you may imagine, Commonbond allows you to apply online and manage your application online. Plus, they have a customer care department that you may contact over the phone, live chat or by email.
- Commonbond allows you to repay early without any serious consequences, which is fantastic news. We at eCheck.org like people to pay off their debts as soon as possible and as a top priority, which is why early repayment options are always a good thing.
- They offer payment postponement options, which sort of shoot you in the foot during the interest-free period while you are in college, but are great when you are older and something happens where you are unable to work.
- You do need a 660 credit score if you re applying for an MBA student loan, but it isn’t a devastatingly high number, and you are allowed to include a co-signer too.
Commonbond – Cons
- You have to keep making your student loan repayments irrespective of the amount you earn. Even if you become unemployed, you still need to find a way to pay your student loan payments.
- The way you repay your loan will help determine how expensive it is. For example, if you create a situation where you wait as long as possible before paying your loan, then you get a worse interest rate and a more expensive student loan.
- Getting approved is very challenging, which we at eCheck.org think is fantastic because if student loans were harder to get and if students had to work harder for them, then there wouldn’t be such a massive student-loan debt bubble. Nevertheless, from a student’s perspective, the fact that it is difficult to get a loan from Commonbond is a downside.
- There are some Commonbond student loans that require a 660 credit rating. Some students are not going to have that credit rating, and some will not be able to use a co-signer either.
Conclusion – Commonbond Is Worth Considering?
In my humble opinion, you should probably give Commonbond a try if you are a student. The only downside I can see from a student’s perspective is that there are government loans that will not start charging students until they are earning a certain amount of money. Government loans take the pressure off with this approach, government loans are easy to dodge and have wiped clean, and government loans are easy to get. I am not recommending it, but it seems far more logical for a student to get a student loan from a government agency than from a lending institution such as Commonbond.
Nevertheless, there are some reasons why some students cannot get a government funded or government incentive loan, and I think they should try Commonbond before they try better-known lenders, (such as banks). I am especially happy with the refinancing deals that Commonbond offer. If you are looking to refinance your student loan, then Commonbond is definitely worth looking into. This is especially true if you have built up a good credit rating after graduating from college.