Refinancing with Earnest
Refinancing rates from 2.50% APR. Checking your rates won’t affect your credit score.
Leaving graduate school with six-figure student loan debt can be daunting. But by earning a professional degree, you invested in your career and your future, and that can pay dividends for the rest of your life. Still, there is no denying the burden of student loan debt. Now there’s a company that wants to invest in you and lower the cost of your student loans by refinancing.
Brooklyn-based startup CommonBond raised over $100 million in September 2013 to give graduates a lower rate on their student loans. This week, CommonBond has expanded its platform to graduates of select Law, Medical, and Engineering programs, in addition to MBA programs. Moreover, the company now offers both 10-year and 15-year refinance loans to equip graduates with a wider range of options to manage their student debt.
Student Loan Hero sat down with CommonBond CEO and Co-Founder David Klein to find out more about the company:
Student Loan Hero (SLH): What exactly is CommonBond, and what are you doing to make student loans more affordable for borrowers?
David Klein (DK): CommonBond is a student lending platform that provides a better student loan experience through lower rates, exceptional customer service, and a commitment to community. Our core mission is to lower the cost of higher education in the U.S.
Since we launched our student loan refinance product to MBA graduates, professionals from numerous fields have approached us to ask when they too could refinance and consolidate their loans through CommonBond. We also had requests from customers for more loan options to help them more flexibly manage their monthly payments.
I’m proud to share that this week marks CommonBond’s expansion to new degree programs across the U.S., in the fields of law, medicine, and engineering, in addition to the MBA programs we’re already in. I’m excited to be expanding to more MBA programs as well, at schools including Vanderbilt, Washington University in St. Louis, and University of Texas.
The new 15-year student loan through CommonBond is another exciting addition. Graduates can now choose to pay off their debt faster with the 10-year loan, or lower their monthly payments further with the 15-year loan. Either way, you can save thousands of dollars over the life of your student loan.
SLH: Can you explain what makes CommonBond different from a traditional lender?
DK: It’s really our emphasis on three things: savings, simplicity, and social good. Savings and simplicity are built right into our loans. We offer all borrowers one low, fixed rate for their student loans – you know exactly what rate you are going to get, even before you apply. You also know that once you get approved for a fixed rate loan, your rate stays at that level even as interest rates rise.
We take simplicity even further by letting you consolidate multiple graduate and undergrad student loans – federal and private – into a single loan, with one monthly bill to manage. As a bonus, we give you a 0.25% deduction on your rate when you set up automatic payments.
We also have a strong emphasis on community. Once you’re a CommonBond borrower, you’re part of the CommonBond Family – a community of students, graduates, alumni, and accomplished professionals. Through our events, outreach, and online resources, we help our borrowers with their loans as well as their professional and personal goals.
SLH: What is the CommonBond “Social Promise”?
DK: Our Social Promise is that for every degree fully funded on the CommonBond platform, we fund the education of a student in need abroad for a full year through our partner, Pencils of Promise. We also sponsor financial literacy programs across the U.S. As more graduates refinance through CommonBond, more children across the globe gain access to a great education.
SLH: What’s the thinking behind CommonBond’s Social Promise?
DK: Social good has been a part of CommonBond’s DNA from day one. We believe that business can and should be a positive force for change. That’s why we created our Social Promise to promote access to high quality education worldwide. We’re super proud to be the first company to ever bring the ”1-for-1” model to education and finance. We’ve been inspired by the likes of TOMS Shoes and Warby Parker.
SLH: So now that you’ve expanded, who is eligible to refinance and consolidate student loans through CommonBond?
DK: We have more than 100 programs in our network now. If you graduated from one of our network schools, and you’re a U.S. citizen or permanent resident, you can apply to refinance and consolidate your student loans through CommonBond. (You can learn more about how to consolidate your student loans here.) Current MBA students can also continue to benefit from the low cost MBA Student LoanTM through CommonBond.
SLH: What does the rest of 2014 look like for CommonBond?
DK: Great question – and one I’m really excited about. We remain focused on having the broadest impact possible for those looking to minimize their student debt. More to come as the year develops.
Want to Learn More? Visit Commonbond.co to see if your eligible.
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
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: https://www.earnest.com/eligibility. 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 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.50% APR (with Auto Pay) to 7.27% 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 April 17, 2019, 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 04/17/2019. 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 https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on our student loan refinance product.
© 2018 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 Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
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 www.laurelroad.com.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com 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 LendKey.com. 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 LendKey.com 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.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). 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 2.49% effective March 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.50% – 7.27%1||Undergrad & Graduate|
|2.50% – 7.12%3||Undergrad & Graduate|
|2.53% – 8.79%4||Undergrad & Graduate|
|2.50% – 6.65%2||Undergrad & Graduate|
|2.55% – 7.12%5||Undergrad & Graduate|
|3.00% – 9.74%6||Undergrad & Graduate|