These two top companies have been competing as newer start up loan refinancing and consolidation companies for a bit now. SoFi has a larger market share, but both SoFi and CommonBond share similar services. With either company you are going to have the option of fixed or variable rate loans, the 20 year maximum repayment length, and interest rates below 2% on variable interest loans. These common benefits are due to both SoFi and CommonBond targeting the same borrowers.
Refinance Your Student Loan With Ease(No Credit Score Required)
The SoFi Edge
SoFi is gaining a fast reputation for VIP treatment for new borrowers. They offer assistance programs when hardship arrives. Their job placement program is an innovative way to say you want the very best for your borrowers. This may just become a standard perk for all those other startup companies, if they are watching SoFi’s rise to success.
Then there is always that extra $150 in your pocket just for signing up with SoFi. This may not be a lottery win, but it is more than you would get with another lender. This is another indication that SoFi appreciates their customers. Following this lead as of June this year, CommonBond hopped on the band wagon and now too offers the glorious $150 sign up bonus. It appears competition for student loan consolidations and refinancing may have SoFi raising the bar.
Created by a group of Stanford business students who wanted to help other business students, SoFi became a nationwide student loan consolidation and refinancing company. This approach is commonly called crowd-sourcing or peer-to-peer lending. SoFi is full of inspiration to borrowers. In fact, they encourage former borrowers to go on to become lenders. What company seeks an ongoing relationship with its customer after the loan term is over? This gives SoFi a huge advantage over other loan consolidation companies. SoFi has the incentive to care, and keep their borrowers happy.
CommonBond Closing In
It was only five years ago when CommonBond was a mere idea, and then became a student loan refinancing platform by a few Wharton MBA students. While some borrowers appreciate the fresh perspective and ever changing innovations, more traditional consumers may not consider CommonBond the best experience for their loan needs.
CommonBond also followed SoFi with a similar employment assistance program. They call this perk CommonBridge, which is a program designed to help those unemployed borrowers 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.
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
The Quick List for CommonBond:
- CommonBond consolidates both federal and private student loans.
- Having the option of 5, 10, 15, and 20 year plans allows borrowers to tailor monthly payments to their specific needs.
- The range of interest rates for CommonBond start as low as 1.92% for their 5-year variable rate loan and go as high as 6.74% for their 20-year fixed rate loan.
- There is no origination fee for CommonBond loans
- No penalty for paying off your loans early.
- Borrowers can apply to consolidate a minimum of $10,000 in student loans, with no maximum limit.
- They also offer four different length repayment plans.
- CommonBond also has a Hybrid Loan that is both a fixed rate loan and a variable rate loan with a 10 year repayment term.
- Another feature of CommonBond loans that we like is the fact that the loans are discharged in the event of the death of the borrower.
- Attention grabbing interest rates are limited to the shorter term loans and the variable interest rate loans.
The Quick List for SoFi:
- Refinancing and consolidation of private and federal student loans
- Must have completed an eligible undergraduate or graduate degree program
- Available for both undergraduate and graduate school student loans
- 1.90% APR to 5.19% APR (with autopay) variable rates, capped at 8.95% to 9.95% APR
- 3.50% APR to 7.24% APR (with autopay) fixed rates
- 5, 10, 15, 20 year repayment terms
- No origination fees or prepayment penalties
- Unemployment protection – loan payments are paused and they help find new job
- Career support – complimentary coaching for SoFi members
- Entrepreneur program – qualified applicants can receive loan deferrals and mentorship
SoFi or CommonBond: Which is the 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. Most of these similarities are in place because both companies are targeting the same borrowers. SoFi is the top contender, but CommonBond is soon to become neck-in-neck.