NYC-based CommonBond, a student-lending platform, expanded its low-cost refinance program to graduates of law, medical, and engineering programs, as well as additional MBA programs at Vanderbilt University, Washington University in St. Louis, and University of Texas.
Through this expansion, CommonBond is now offering over 100 graduate degree programs in the US to lend against.
CommonBond connects students with alumni investors to offer easier and cheaper student loans. These investors tend to be genuinely interested in supporting grad students which leads to CommonBond’s other goal: building a community around the product.
The entire system is built on trust but also hard data: CommonBond checks the credit score of each applicant, takes a close look at the candidate’s potential for future earnings and chooses only those with high earning prospects in the best programs.
As a way to give back to society, CommonBond has introduced a 1-for-1 model. For each fully funded degree on CommonBond the platform funds the education of a student in need for a full year through Pencils for Promise.
Through CommonBond students can consolidate multiple undergraduate and graduate loans into a single, 10-year fixed-rate loan and refinance at a rate of 5.99% or choose a new 15-year fixed-rate loan for borrowers interested in lowering their monthly payments. The fixed-rate product is set at 6.49% (with automatic debit) for refinance borrowers.
CommonBond raised a $100 million private equity round in September 2013 and expects to have more than 1000 borrowers by the end of this year. The startup estimates to have saved their 2014 borrowers $10 million in aggregate interest payments over the life of their loan.
- CommonBond Expands Student Loan Refinancing to Over 100 Graduate Programs | Press Release
- CommonBond extends MBA loan scheme | FT
- Graduate Student Lending Platform CommonBond Expands Its Program to Law, Medical, Engineering Grads | Tech Cocktail
- Brooklyn’s CommonBond is building a student-loan empire on trust | Wakefield