By Brian Yurcan for American Banker
The online lender CommonBond, known largely for refinancing student loans, said Tuesday that it has begun offering a wider assortment of loans to current higher-education students.
CommonBond had previously originated education loans only to Master of Business Administration candidates, and the positive response to that product prompted the company to expand its offerings to undergraduate and other grad students, co-founder and CEO David Klein told American Banker.
“We see this as the natural next stage in our development,” Klein said. “We have said from the beginning we want to have the broadest possible impact in education financing.”
CommonBond’s student loans feature variable rates starting at an annual percentage rate of 2.87% with autopay discount and fixed rates starting at a 5.50% APR with autopay discount. It offers four different repayment options for students in school: deferment, fixed monthly payment, interest-only payment and full monthly payment.
“Since CommonBond first helped pioneer student loan refinancing nationwide, we’ve seen very little innovation in the student loan industry,” Klein said. “There’s nothing but traditional incumbents in that space right now, which is another reason we launched this product.”
CommonBond is also introducing an interactive digital tool that helps students understand the financial impact over time of different student loan options, such as what types of loans families can consider and how different repayment decisions affect future finances.