CommonBond vs. SoFi Student Loan Refinance Review: Which Is Right for You?

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CommonBond vs. SoFi refinance student loans

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If you’re looking to pit CommonBond vs. SoFi, you might already know a great deal about student loan refinancing — a strategy that could help you save money on interest or lower your monthly debt payment.

Both of these leading student loan refinancing companies stand out from their competition by offering low interest rates, a variety of repayment terms and protections like deferment and forbearance. But how do they stand out from each other?

Let’s dive deeper to find out whether one finishes on top in the SoFi vs. CommonBond showdown:

When to choose CommonBondWhen to choose SoFi
1. You could qualify for the lowest rates
2. You’re interested in a hybrid loan
3. You want the option of cosigner release
4. You support the lender’s social mission
1. You have an AA, are a non-permanent resident (or DACA recipient), or are in a similar situation
2. You will use its unique member perks
3. You’re a medical or dental resident

CommonBond vs. SoFi: The basics

As relatively newer companies with high-tech approaches to lending, CommonBond and SoFi have a lot in common. For one, they provide student loan refinancing for the most debt-burdened borrowers. CommonBond will refinance up to $500,000, while SoFi has no maximum amount.

Both provide competitive interest rates and let you choose between fixed and variable rates on your refinanced student loan. CommonBond also has a hybrid loan option, which involves a fixed rate for five years and a variable rate for the rest of your term.

The CommonBond vs. SoFi chart below takes a closer look at the rates and terms on these two lenders’ student loan refinancing products.

Loan amount$5,000 to $500,000$5,000 or more
APR rangeVariable: 1.99% – 6.84%
Fixed: 2.83% – 6.74%
Variable: 2.25% – 6.88%
Fixed: 2.99% – 7.33%
Repayment termsUp to 20 yearsUp to 20 years
Rate typeFixed, variable or hybridFixed or variable
Autopay discount0.25 percentage points0.25 percentage points
Origination fee0.00%%0.00%%
Prepayment penaltyNoneNone
Allows a cosigner?YesYes
Offers cosigner release?Yes (after 36 consecutive on-time payments)No (though you could refinance a second time to release the cosigner)
Instant prequalificationYesYes
Eligibility requirements● Minimum 660 credit score
● Received a bachelor’s degree from an eligible school
● U.S. citizen, permanent resident or visa holder
● Meet other requirements for income and employment
● Minimum 650 credit score
● Received at least an associate degree from an eligible school
● U.S. citizen, permanent resident or visa holder
● Deferred Action for Childhood Arrivals (DACA) program recipients or non-permanent residents can apply with a U.S. permanent resident cosigner
● Meet other requirements for income and employment
Residency requirementsLends in all states except for Mississippi and NevadaLends in all 50 states
Extra benefits● 32 months of deferment if you return to school
● 24 months of forbearance if you encounter financial hardship
● When you refinance, CommonBond pays to educate a child in a developing country.
● Deferment if you return to school
● Forbearance if you encounter financial hardship, experience unemployment or serve in the military
● Career, financial coaching
● Community events
● Entrepreneur Program

Since CommonBond and SoFi allow for instant rate quotes, you can easily compare preliminary offers from the two lenders. Although you might go with the loan with the lowest interest rate, remember that there are other factors to consider, too.

4 times to choose CommonBond vs. SoFi

Although CommonBond and SoFi offer competitive terms and useful benefits to creditworthy borrowers, CommonBond offers a few perks that its rival doesn’t.

Here are four scenarios when it could make sense to choose CommonBond as your refinancing provider.

1. You can qualify for the lowest rates

With its variable APR starting at 1.99%, CommonBond advertised a slightly lower interest rate on a refinanced student loan than SoFi did at the time this article was published. That said, things can change, so it’s worth checking the rates, and either way, you or your cosigner will need excellent credit to qualify for those lowest rates.

If your priority is to save the most money on interest, CommonBond could come out as the winner against SoFi. But look at your offered rates with both lenders to see which will give you your best deal based on the information you provide in your application.

2. You’re interested in a hybrid loan

CommonBond is unique with its hybrid loan product, which combines a fixed rate and variable rate on the same loan. When you borrow a hybrid loan, you’re signing up for a 10-year repayment term.

The first five years will have a fixed rate, after which the loan will switch to a variable rate. The variable rate will be assigned based on the London Interbank Offered Rate — a key financial benchmark, often known as LIBOR — and could fluctuate.

That said, you could pay off your loan ahead of time without penalty. According to CommonBond, the hybrid loan is best for borrowers who intend to pay off their loan earlier than planned and avoid much exposure to the variable interest rate.

With the hybrid loan, you could get a lower fixed rate than you would on the traditional fixed-rate loan. If you can pay off your debt within five years, you’ll save money on interest and never have to deal with the uncertainty of a variable rate.

3. You want the option of cosigner release

Adding a cosigner to your refinancing application could help you qualify for lower rates, especially if you don’t have strong credit or steady income. But you and your cosigner must be comfortable sharing debt, as your cosigner’s finances will be on the line if you can’t pay.

CommonBond, however, offers the perk of loan cosigner release. If you make 36 consecutive on-time monthly payments, you could apply to have your cosigner removed from the loan. Going forward, you’d be the only one responsible for your debt.

SoFi, on the other hand, allows you to apply with a cosigner, but it doesn’t offer a cosigner release.

4. You support CommonBond’s social mission

When you refinance with CommonBond, the lender promises to cover the cost of a child’s education in Laos, Nicaragua, Guatemala and Ghana. It partners with nonprofit organization Pencils of Promise to provide schools, teachers and technology to thousands of young learners.

To date, CommonBond has donated over $1 million and built 470-plus schools through this program. If you want to refinance with a lender that’s committed to improving social good, CommonBond could be the right choice for you.

3 times to choose SoFi vs. CommonBond

While CommonBond has low rates and flexible terms, SoFi also offers a variety of benefits to customers, plus it often has relatively low interest rates, so it’s worth looking at when you do your comparison shopping.

Here are three instances when refinancing with SoFi might be preferable to refinancing with CommonBond.

1. You fail to meet one of CommonBond’s eligibility criteria

While both SoFi and CommonBond allow cosigners and are relatively accessible as compared to other competing lenders, SoFi’s eligibility criteria are more lenient.

You might find yourself ineligible for CommonBond if you’re refinancing student loans with an associate degree as opposed to a bachelor’s, for example.

Here are other times where SoFi might be a more accessible alternative to CommonBond:

  • Your credit score falls in the 650-to-660 range
  • You’re a non-permanent resident or DACA recipient with a U.S. permanent resident cosigner
  • You have an associate degree
  • You live in Mississippi or Nevada
  • You have more than $500,000 of student loan debt

If you’re in one of these categories, you might find a new competing lender to compare with SoFi. For example, EdVestinU works with borrowers who didn’t graduate or hold an associate degree.

2. You will make use of its special member benefits

SoFi is unique for all the benefits it offers to its customers. Here are the resources you’ll be connected with if you choose to refinance your student loans with SoFi:

  • Career services to help you with searching for a job, changing careers and personal branding
  • Financial coaching to help you achieve your financial and investing goals
  • Community events to meet people through dinners, happy hours, educational activities, networking opportunities and other exclusive experiences
  • Member discount of 0.125% on additional loans you borrow from SoFi
  • Bonus for referring another customer

3. You’re a medical or dental resident looking to refinance

SoFi offers a special student loan product for medical and dental residents looking to refinance their medical school debt. If you’re a medical resident or fellow with more than $10,000 in student loans, you could be eligible for a SoFi medical resident refinance loan.

You can choose repayment terms of 5, 7, 10, 15 or 20 years, as well as a fixed or variable rate. You won’t have to make full monthly payments right away. Instead, you can send in $100 per month until you finish your program, for up to 54 months.

While some residents simply put their loans into deferment, refinancing and making small monthly payments could limit the accrual of interest — SoFi even promises not to compound interest. As a result, your balance won’t be as big when you finish residency and start full repayment.

With that said, medical and dental school graduates have a host or repayment options, so review our related guides:

What to know before choosing a refinancing lender

Before making a decision in the SoFi vs. CommonBond battle, make sure you understand the pros and cons of student loan refinancing.

For instance, refinancing can save you money if you qualify for a lower interest rate. It lets you adjust your monthly payments by choosing new repayment terms — a shorter term could get you out of debt faster, whereas a longer term could reduce your monthly bills.

Plus, you can refinance both federal and private student loans together into one new loan, simplifying your debt.

But when you refinance a federal student loan, you turn it into a private one. As a result, you lose access to federal programs, such as income-driven repayment plans and certain loan forgiveness programs.

If you’re relying on either, refinancing likely wouldn’t be a good move. But if you’re confident you can pay back the loan on time — or take advantage of CommonBond or SoFi’s deferment and forbearance benefits, if necessary — then refinancing could save you money on your debt.

CommonBond vs. SoFi: Which is right for you?

When comparing CommonBond vs. SoFi, it’s obvious that both lenders offer useful perks and benefits to customers, along with competitive rates and flexible repayment terms on their student loans.

Neither comes out as a clear winner in the SoFi vs. CommonBond contest. Rather, the right lender depends on your unique circumstances and needs.

If the option of cosigner release is important to you, for instance, CommonBond could be the better choice. But if you’re intrigued by SoFi’s member benefits, you might be better off going with SoFi.

Either way, make sure to compare offers from a variety of lenders before choosing. By shopping around, you can feel confident you’ve found the best offer for your refinanced student loan.

Andrew Pentis contributed to this report.

Interested in refinancing student loans?

Here are the top 6 lenders of 2021!
LenderVariable APREligible Degrees 
1.89% – 5.99%1Undergrad
& Graduate

Visit Splash

1.99% – 5.64%2Undergrad
& Graduate

Visit Earnest

1.99% – 6.84%3Undergrad
& Graduate

Visit CommonBond

2.25% – 6.88%4Undergrad
& Graduate

Visit SoFi

1.91% – 5.25%5Undergrad
& Graduate

Visit Lendkey

1.89% – 5.90%6Undergrad
& Graduate

Visit Laurel Road

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of Feburary 1, 2021.

2 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.49% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.34% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of October 26, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 10/26/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.

3 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. ‍All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.

4 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 2.99% APR to 7.33% APR (with AutoPay). Variable rates from 2.25% APR to 6.88% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.13% plus 2.37% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The discount will not reduce the monthly payment; instead, the interest savings are applied to the principal loan balance, which may help pay the loan down faster. Enrolling in autopay is not required to receive a loan from SoFi. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.  

5 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 02/17/2021 student loan refinancing rates range from 1.91% APR – 5.25% Variable APR with AutoPay and 2.95% APR – 7.63% Fixed APR with AutoPay.

6 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.


This information is current as of January 4, 2021. Information and rates are subject to change without notice.