CommonBond, a leading financial technology company that helps students and graduates pay for higher education, today announces the launch of student loans for undergraduate and graduate students.
This launch makes CommonBond the first and only company in the country to offer a full suite of student loan solutions, including loans for current students, refinance loans for graduates, and employer student loan benefits for employees.
“Since CommonBond first helped pioneer student loan refinancing nationwide, we’ve seen very little innovation in the student loan industry,” said David Klein, CEO and co-founder of CommonBond. “The student loan experience we’re launching today is one I wish I had when I was in school. It was the frustration with my own student loan experience - dealing with high rates, poor service, and a confusing process - that led me to start CommonBond in the first place. We’re excited to provide students across the country with the transparent and affordable student loan options they deserve.”
CommonBond’s new in-school loans provide:
• Competitive interest rates: CommonBond’s rates are among the most competitive in the industry, with variable rates starting at 2.87% APR with autopay discount and fixed rates starting at 5.50% APR with autopay discount.
• Flexible repayment options: CommonBond offers four different repayment options for students in school: deferment, fixed monthly payment, interest-only payment, and full monthly payment.
• Award-winning customer service: CommonBond knows that paying for college is the first major financial decision that many students make, and provides best-in-class care for prospective and current members. In 2016, the company was awarded a People's Choice Stevie Award for Favorite Customer Service.
• An industry-first social mission: CommonBond enables its members to drive social good when taking out a student loan. For every student loan funded by CommonBond, the company also funds the education of a child in need through a partnership with Pencils of Promise.
Before today, CommonBond’s loans for current students were only available to MBA students. The company quickly became the largest private lender at many business schools, due to its affordable options, easy online experience, and friendly customer service. Customer response to the product demonstrated a critical need for CommonBond to play a larger part in an industry that lacks tech-enabled, customer-centric options.
“Getting my MBA was a huge financial decision, so I decided to research several different lenders," said Alex Kubo, a CommonBond member. "CommonBond offered me the most competitive rates, had an easy signup process, and even invited me to travel to Ghana last year to see its Social Promise in action. Paying for school can be stressful and hectic, but the care taken by CommonBond throughout both the application process and the term of my loan is proof that it doesn't have to be.”
CommonBond is also introducing an interactive tool that helps students understand the financial impact over time of different student loan options, enabling them to make informed financial choices. Developed after extensive input from financial aid officers, students, and parents, this educational tool provides personalized guidance for what types of loans families can consider, and how different repayment decisions made now can affect monthly payments later.
“With the price of higher education increasing every year, it’s really important that students, and their parents, get the resources that they need to make informed financial choices,” said Klein. “That’s why CommonBond is offering a comprehensive set of repayment options as well as transparent, easy-to-use tools to help families choose the option that’s right for them.”
CommonBond has funded more than $1 billion in loans to date. The company was also recently named a 2017 Benefit Technology Innovator for its CommonBond for Business™ platform, which helps employers offer student loan repayment as an employee benefit.