Undergraduate students and their parents have a new source for student loans. For the first time, CommonBond, a successful Wharton MBA-founded startup, today (April 25) entered the loan market loans for undergraduate and graduate students.
The company’s loan 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.
Before today, CommonBond’s loans for current students were only available to MBA students, a market in which the company became the largest private lender at many business schools. The company has lent more than $1 billion to students since being founded in November of 2012 on Wharton’s campus.CommonBond says the move makes it 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.
FIRM FOUNDED BY WHARTON MBAS FRUSTRATED OVER THEIR OWN LOAN EXPERIENCES
CommonBond said its new in-school loans provide:
Flexible repayment options: CommonBond offers four different repayment options for students in school: deferment, fixed monthly payment, interest-only payment, and full monthly payment.
Solid 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.
A NEW INTERACTIVE TOOL FOR STUDENTS AND PARENTS
CommonBond also said it is introducing an interactive tool that helps students understand the financial impact over time of different student loan options, enabling them to make more informed financial choices. Developed after 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,” added 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.”