CommonBond was founded back in 2011 by three Wharton MBA graduates. It is a market based lending platform that helps students to finance their education. CommonBond focuses on a two- sided market; the Borrowers & the Investors. Lets look into How To Use CommonBond to get a student loan.
There are a few pre-requisite conditions that you need to follow in order to obtain a loan from the company.
-The applicant must be a US citizen or permanent resident.
-The applicant must be a full-time graduate student at one of the eligible schools mentioned.
-A mandatory review the applicant’s credit profile will be conducted.
The entire application is an 8 step process which you have to follow before your loan is sanctioned.
The list of eligible schools and programs in the network as of are.
- Brigham Young University-Provo – Marriott.
- Carnegie Mellon University – Tepper.
- Columbia University – CBS.
- Cornell University – Johnson.
- Dartmouth College – Tuck.
- Duke University – Fuqua.
- Emory University – Goizueta.
- Georgetown University – McDonough.
- Harvard University – HBS.
- Indiana University Bloomington – Kelley.
- Massachusetts Institute of Technology – Sloan.
- New York University – Stern.
- Northwestern University – Kellogg.
- Rice University – Jones.
- Stanford University – GSB.
- The University of Texas at Austin – McCombs.
- University of California, Berkeley – Haas.
- University of California, Los Angeles – Anderson.
- University of Chicago – Booth.
- University of Michigan – Ross.
- University of Minnesota – Carlson.
- University of North Carolina at Chapel Hill – Kenan-Flagler.
- University of Notre Dame – Mendoza.
- University of Pennsylvania – Wharton.
- University of Southern California – Marshall.
- University of Virginia – Darden.
- University of Washington – Foster.
- Vanderbilt University – Owen.
- Yale University – SOM.
The students whose applications are accepted will be entitled to receive one of two rates, depending on the repayment term they choose. The options are:
1) A 10-year option with a fixed interest rate of 6.05% (6.23% APR).
2) A 15-year option with a fixed interest rate of 6.60% (6.72% APR).
-The maximum amount that a student can borrow from the company is $110,000 per academic year.
MBA Student Loans have Two Repayment Options and Two Repayment Terms.
Full deferment. Under this plan, interest & principal will be deferred while you are in school. Post which, an additional grace period of up to six months (combined maximum deferment of 32 months). After which there will be a ten-year or fifteen-year repayment period.
Full principal and interest payment. Under this plan, repayment will begin immediately and will continue over either a ten-year or fifteen-year repayment period.
-Ten-year (120 months) or Fifteen-year (180 months) repayment period.
-You can also make one-time payments at any time during the deferment or repayment period.
-Depending on the repayment option that you select and your anticipated graduation date. There is a grace period for MBA Student Loans of up to six months following graduation.
Also on the website there’s a “Live Chat” option which you can access by signing up on the page or by using your Facebook account. Once you sign up, you can engage directly with the officials and get all the relevant information to speed up your application process.
The company supports many NGOs in the African Nations as a part of their social campaign to impart education. Hope this article has given you brief idea about How To Use CommonBond and How you can benefit from the services!
Recently the company announced that it had raised $300 million in debt to loan out to prospective borrowers. A further $30 million in a Series C equity round to continue building out its platform. In addition to this, the company also announced that they had acquired another startup named Gradible. This company will be used to facilitate the services offered on their existing business.
One of the major strategic actions taken by the company is that it targets students who are pursuing their post graduation or rather their Master’s Program. The reason behind that being, they will be earning more over the years when they are working. This has also seen a growth in the loan volumes, which are double to what they were in the previous years. The company uses its own algorithms and risk analyzations to determine a user’s credit score, and cuts out banks from the whole equation while processing the whole loan online.
CommonBond has been attracting a lot of Investors on board and their growth has been scaling each year. The reason being, that the market is relatively still untapped with only a few players who are private. 93% of loans are funded by the government. Investors thereby having realized the potential of this sleeping giant, appear to be patient despite the setback in the wider industry.
How Does CommonBond work?
CommonBond helps potential Borrowers save almost $14,000 on an average. How they do this? By refinancing borrowers into lower interest rates than that are offered by federal governments and private banks.
At the same time, the Investors on the platform can earn their financial returns particularly on a relative basis. They are related to other investments out there on a risk adjusted basis. In the 3 years on the national scale, CommonBond is yet to have a default on the platform. Thereby assuring Investors that it’s a safe bet.
Can you please explain the website of Common Bond in detail?
On the HomePage of the website, are a list of options that gives you a general overview about what the company is all about along with the services that they offer.
On top of the page are Seven different Tabs that links you to different pages providing information in detail.
- Refinance Student Loans.
- Refinance Parents PLUS Loans.
- MBA Student Loans.
- Personal Loans.
FAQ. The FAQ section again has 4 different tabs once you enter the page with separate listings for Students, Graduates, Parents and Personal Loans.
- Refinancing 101.
- Consolidation Vs Refinance.
SOCIAL PROMISE. Keeps you in track about the social community work that the company does and how it promotes its vision of providing education to all.
- About Us
LOGIN. Here you can sign up for the website to receive notifications and other details that you require.
GET YOUR RATES. Calculates Interest Rates based on your assets and income levels and gives you an overview of what your interest rates will be.