The comparison between DRB and CommonBond is a showdown between a traditional banking system and one of the new innovative startup companies. Both offer the lowest interest rates for student loan refinancing and consolidation. Many borrowers are ready for the young fresh perspective on loan consolidation. Then there are the more traditional consumers who may not consider CommonBond the best experience for their loan needs. Both offer the general benefits as most other lenders with no origination fee and they both consolidate federal and private loans. From this vantage, the similarities begin to fade, and their different loan styles become noticeable.
Refinance Your Student Loan With Ease(No Credit Score Required)
DRB Keeps It Traditional
You will find Darien Rowayton Bank (DRB) only on the East Coast. It is a traditional old school bank which has been operating for quite awhile now. You can actually walk into their building, sit down, and begin your inquisition into student loan consolidation. What probably brought you in the door in the first place was their reputation for offering the lowest interest rates aside from the hungry new startup loan consolidation companies. DRB is exceptional in keeping up with the issues of burdening student loan debt and resolving to help borrowers tackle the problem.
For one, DRB created a specialized borrower program. One such program for medical school graduates allows Residents and Fellows to pay only $100 per month towards their student loans until the end of their fellowship or residency. They then get a 6 month grace period to begin making standard payments. DRB offers this perk because they recognize the initial hardships that may come early after graduation. This program allows for the immediate refinancing to fend off the interest while higher paying work is secured.
Whether you need more time to pay your loans or you desire to aggressively tackle the loan amount DRB has something for everybody. The biggest advantage to DRB has to be their low interest rates coming in at 1.92% is the lowest rate yet to be seen. And for the ones who need that extra time, they carry a fixed rate of 3.5%.
DRB also has a commendable cosigner program. For one, they are not insistent on cosigners as are some other consolidation companies. Even for borrowers who require a cosigner there is no fixed waiting period for release. As soon as the borrower builds his good name in credit and has a steady income, the cosigner is free to go.
CommonBond Brings the Future
All it took was an idea from a few Wharton MBA students to bring CommonBond to one of the top loan consolidation companies around today. CommonBond has youthful and fresh perspectives on helping borrowers. They are consistently evolving into a better loan servicer.
CommonBond followed SoFi’s lead with a similar employment assistance program. They call their version CommonBridge, It is a program designed to help those unemployed borrowers to find a new job. Like SoFi, they are willing to spend the money in a calculated risk that borrowers will return to work, and less loans will be in default or behind in payments.
CommonBond also has a Hybrid Loan that is both a fixed rate loan and a variable rate loan with a 10 year repayment term. The interest rate starts out as a fixed rate loan for the first five years and then becomes a variable interest rate loan for the last five years. This is new, and not many people are really sure who it is targeted for; but CommonBond most likely has a plan.
Another nice advantage of CommonBond is that in the event of the death of a borrower, the loan will be discharged. Some lenders pass that debt on to the cosigner. This is a good sign of a conscience reputable lender.
Other great perks of CommonBond is their financial hardship forbearance and academic forbearance. They also offer a grace period between 30-60 days. And finally, as of June, CommonBond added another nice little perk with a $150 sign up bonus. Sure, it may not be the lottery, but at least it shows this company is noteworthy and one to watch.
The Quick List for CommonBond:
- Refinancing and consolidation of private and federal student loans
- Available for undergraduate, graduate, and Parent PLUS student loans
- 1.93% – 4.97% APR variable rate refinancing (with autopay)
- 3.74% – 6.49% APR fixed rate refinancing (with autopay)•
- 3.98% – 5.64% APR hybrid rate refinancing (with autopay)
- 5, 10, 15, and 20 Year Repayment Terms
- 0.25% Interest Rate Reduction with automatic payments via ACH
- Unemployment protection – loan payments are paused and they help eligible graduates find new jobs and also hire them for short-term consulting projects
- Access to CommonBond Community – Borrowers are connected to events in their cities, networking opportunities, and lifestyle perks
- Social good – for every fully funded degree through CommonBond, they fund the education of a student in need abroad for a year through Pencils of Promise
- No application, origination or disbursement fees
- $150 sign on bonus available to new borrowers
DRB or CommonBond: Which one is best?
If you have a solid income and credit score, and plan on aggressively paying off your student debt, CommonBond could be a great option. Actually, CommonBond might just be an over better choice with all the added benefits, benefits that most of us could use.