CommonBond student loans review: Lender with a variety of repayment term lengths, but high variable rates

Pros and cons of CommonBond undergraduate student loans

Pros	Cons
Several repayment term lengths No origination fee No prepayment penalty Low maximum interest rates	Late payment penalty High minimum interest rates on variable loans No mobile app No weekend customer support

CommonBond undergraduate student loans

CommonBond Undergraduate Student Loans minimum rates on its undergraduate student loans are significantly higher than competitors, particularly its variable-rate loans. If your cosigner has a good credit score, you may be eligible for a variable-rate loan with another company that is roughly 2% lower than with Commonbond.

You won’t pay any origination, prepayment, or application fees, but the company does charge a late fee. You have a multitude of term lengths to choose from, including periods of five, seven, 10, 15, and 20 years. 

CommonBond graduate student loans

CommonBond Graduate Student Loans offers competitive minimum APRs on its fixed-rate graduate student loans compared to similar companies. However, the lender is generally a worse option if your cosigner has a good credit score and you’re applying for a variable rate loan. Commonbond offers many term lengths, which can help you if you want lower monthly payments (longer term length) or to save in overall interest (shorter term length).

How CommonBond student loans work

CommonBond Undergraduate Student Loans offers student loans for a variety of degree types, including undergraduate, graduate, medical, dental, and MBAs. You must have a cosigner to apply, though after two years of consecutive, on-time payments you can apply to release them from your loan.

Prioritize your federal student loan options before applying for any private student loan, including one with CommonBond, as you can often get better terms and protections through the government.

You need to meet the following qualifications to get a student loan:

• Be a US citizen or permanent resident 
• Be enrolled in a school within CommonBond’s network half-time or more
• Have a cosigner who can pass a credit check

There are several options for contacting CommonBond’s customer support. You can call the company from 7:00 a.m. to 8:00 p.m. Monday through Friday, excluding holidays. You can also email the lender, or send physical mail to its New York address. 

CommonBond also offers an option for COVID-19 relief. COVID-19 has been designated a natural disaster, so it qualifies for the company’s natural disaster forbearance. You can pause your payments in one-month increments through the end of the national emergency declaration, though interest will continue to accrue while your loans are in forbearance. You need to apply for forbearance through the lender. 

What options do I have to repay my CommonBond student loans?

You have four options to repay your student loan after you’ve taken it out: deferred, flat, interest-only, and full payment. Each option has its advantages for different types of borrowers. 

Deferred	Fixed	Interest-only	Full payment
No payments while in school and during six-month grace period Unpaid interest accrues Interest is capitalized at the end of deferment period Highest overall cost	Pay $25 per month while in school and during six-month grace period Unpaid interest accrues Interest is capitalized at the end of fixed monthly payment period Low in-school payments	Pay loan’s interest monthly while in school and during six-month grace period Moderate in-school payments	Repay principal plus interest while in school and during six-month grace period Lowest overall cost Highest in-school payments

Since you don’t pay off your any of your loan balance until after the grace period with deferred payments, this option will cost you the most overall. Full payments will net you the lowest overall cost because you aren’t giving interest any time to accrue while you’re in school. 

Is CommonBond trustworthy?

The Better Business Bureau has rated CommonBond Undergraduate Student Loans a B+ in trustworthiness. The BBB cites 13 complaints against the company as the reason for its score. The BBB measures trustworthiness by reviewing business’ replies to customer complaints, truthfulness in advertising, and openness about business practices. 

You aren’t guaranteed to have a solid relationship with CommonBond just because the business has a good BBB rating. Ask your friends and family about their experiences with the lender and do your research online. 

CommonBond doesn’t have any recent scandals, so you may decide you’re comfortable borrowing from the lender. 

How CommonBond student loans compare 

CommonBond Undergraduate Student Loans minimum rates on variable loans are higher than those offered by comparable lenders — though rates are contingent on your creditworthiness and other financial factors. However, if your cosigner doesn’t have the best credit history, Commonbond’s maximum rates are lower than other competitors. Here’s how Commonbond compares:

Undergraduate APR CommonBond Undergraduate Student Loans	Undergraduate APR College Ave Undergraduate Student Loans	Undergraduate APR Discover Undergraduate Student Loans
Fees Late fee of 5% of the unpaid amount of the payment due or $10.00, whichever is less	Fees Late fee of 5% of the amount due, capped at $25	Fees None
Commonbond Undergraduate Student Loans	College Ave Undergraduate Student Loans	Discover Undergraduate Student Loans

If you have good credit, you’ll likely get a better APR with College Ave than with CommonBond, as College Ave has a lower minimum fixed and variable interest rates.

Neither company will charge origination fees or prepayment penalties, but you will pay a late payment fee with both lenders.

CommonBond has a lower minimum fixed APR than Discover, while Discover has a lower minimum variable APR. You’ll get a lower maximum APR with CommonBond, so it could be a good choice if your cosigner’s credit isn’t in the best shape. 

Discover doesn’t charge any fees on its student loans, while you’ll pay a late fee on CommonBond loans. 

You can pick a repayment term length of five, seven, 10, 15, and 20 years with CommonBond, while Discover only offers a 15-year term length on its student loans.