How Commonbond Loans Help Cosigners Gain Freedom

CommonBond is a student loan refinancing company that offers both variable and fixed APRs. The company requires all undergraduate and graduate students to have a cosigner when applying for a loan, except for students in one of 29 MBA programs. A cosigner is usually a parent or legal guardian who commits to making payments on a student's loan if the student cannot. CommonBond offers a cosigner release option, which means that after the borrower makes two years of consecutive, on-time, and complete monthly payments, the cosigner is released from any further obligation related to the loan.

CommonBond's cosigner release requirements

CommonBond's cosigner release option allows the primary borrower to remove their co-signer from any loan obligations and assume sole responsibility for the loan. This feature is intended to help borrowers achieve financial independence and relieve cosigners of their financial liability.

To be eligible for cosigner release, CommonBond requires the borrower to have made 24 consecutive months of full, on-time monthly payments of the loan's principal and interest. This demonstrates the borrower's financial growth and ability to handle their debt independently. It is important to note that any period of forbearance interrupts consecutive payments.

Additionally, the borrower must have completed their degree before CommonBond will release the cosigner. This is because a graduate is more likely to secure employment and be able to manage the loan repayments without assistance.

The release of a cosigner from a loan offers benefits to both the borrower and the cosigner. For the borrower, it signifies independence and financial growth. Meanwhile, releasing a cosigner can lower the outstanding debt for the cosigner, particularly if they are a parent or guardian who has been sponsoring the loan.

If you have any questions about CommonBond's cosigner release requirements or other aspects of the student loan process, you can contact their customer care team via email at [email protected] or by phone at (800) 975-7812.

Benefits of cosigning a CommonBond loan

CommonBond requires all undergraduate and graduate students to have a cosigner when applying for a loan. The only exception is for students in one of 29 MBA programs. A cosigner is usually a parent, family member, or friend who commits to making the payments on a student's loan if the student is unable to. While it may seem like a big commitment, there are several benefits to cosigning a CommonBond loan.

First, a cosigner with a strong credit history can help lower interest rates, resulting in significant savings. For example, according to a study by Credible, an undergraduate with a cosigner has an interest rate that is more than 2% lower, which can translate to thousands of dollars in savings over the life of the loan.

Second, cosigning can help students qualify for a loan they might not otherwise be approved for due to a lack of credit history or a low credit score. This is especially beneficial for students who may have had difficulty paying bills in the past, as reflected on their credit report.

Third, cosigning can facilitate clear communication and expectations between the cosigner and the student regarding repayment plans and payment progress. This can help maintain solid credit and a good relationship between the parties involved.

Finally, CommonBond offers a cosigner release policy, which allows the cosigner to be relieved of their financial liability over time. After graduating and making 24 consecutive, on-time monthly payments of the loan's principal and interest, the student can apply to release the cosigner, demonstrating their financial independence and ability to handle debt.

CommonBond's undergraduate loan cosigner policy

Undergraduate and graduate students applying for a CommonBond loan are typically required to have a creditworthy cosigner. The only exception is for students in one of 29 MBA programs. A cosigner is usually a parent, family member, or friend who agrees to make payments on a student's loan if the student is unable to.

The interest rate for a CommonBond student loan depends on the credit profile of both the student and the cosigner, the choice of a variable or fixed rate, and the length of repayment for the loan. A cosigner with a strong credit history can help lower the interest rate, saving the student money.

However, CommonBond also offers a cosigner release policy, which allows students to release their cosigner from any obligation related to their student loans. To be eligible for cosigner release, students must meet certain requirements, including:

• Making 24 consecutive, on-time monthly payments of the loan's principal and interest
• Graduating from the degree program that their student loan was associated with
• Passing the age of 21
• Meeting CommonBond's current underwriting criteria at the time of release, which includes a new review of the applicant's credit

It is important for students to consult CommonBond's cosigner release policy to ensure they meet all the requirements before applying for cosigner release.

CommonBond's student loan refinancing

CommonBond is no longer offering new student loans or refinancing options. However, it previously offered refinancing for federal, private, graduate, and undergraduate loans, as well as previously consolidated loans, corporate-sponsored student loans, and international student loans.

CommonBond's refinancing options stood out for their co-signer release option. This allowed the borrower to release their co-signer from the loan after 24 consecutive months of full, on-time monthly payments. This helped the primary borrower achieve financial independence and lowered the co-signer's amount of outstanding debt.

Before CommonBond ended its student loan program, it offered both variable and fixed APRs. Variable interest rates ranged from 4.44% to 8.09% APR, while fixed rates ranged from 4.49% to 7.74% APR. Both options included a 0.25% autopay discount. CommonBond did not charge origination fees or early payoff penalties. However, late payments incurred a 5% fee of the outstanding unpaid amount or $10, whichever was less, and there was a $5 return check fee, subject to state law restrictions.

Loan amounts went up to $500,000, with no minimums, and borrowers could choose from 5, 10, 15, or 20-year loan terms. CommonBond also offered personalized service and repayment flexibility, including a dedicated advisor, or "Money Mentor", and up to 24 months of forbearance in three-month increments.

CommonBond's loan repayment options

CommonBond offers a range of loan repayment options for its customers. Firstly, it is important to note that CommonBond requires all undergraduate and graduate students to have a cosigner when applying for a loan. The only exception is for students enrolled in one of the 29 MBA programs. A cosigner is usually a parent or legal guardian who commits to making payments on the student's loan if the student is unable to.

After graduation, CommonBond offers a six-month grace period during which borrowers are not required to make any payments, although interest will continue to accrue. There are four repayment options during this grace period:

• Full monthly payment: The borrower makes full monthly payments (principal plus interest) while in school.
• Interest-only payment: The borrower pays only the interest that accrues each month while in school.
• Fixed monthly payment: The borrower makes fixed payments of a low amount, such as $25 or $100, each month while in school.
• Deferred payment: The borrower postpones making any payments until the end of the grace period, at which point all interest will be capitalized.

CommonBond also offers a 0.25% interest rate reduction for borrowers who enroll in auto-draft payments. Additionally, the company provides forbearance for students who encounter economic hardship after graduation, allowing them to pause or reduce their payments temporarily.

After 24 consecutive months of full payments, borrowers can apply for a cosigner release, which relieves the cosigner of financial liability and helps the borrower achieve financial independence. This milestone demonstrates the borrower's independence, financial growth, and ability to manage their debt.

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