SoFi vs. CommonBond Student Loan Comparison
Both SoFi and CommonBond offer student loan refinancing services, and the two share many benefits, including competitive rates. This SoFi vs. CommonBond comparison will offer insight into when one lender may be better than the other.
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Student debt can be a significant financial burden, but for some borrowers, refinancing your student loans could make it easier to manage that debt. It can lower your monthly payments, decrease your interest rate, and help you repay your loans faster.
Two popular lenders that offer student loan refinancing services are SoFi and CommonBond. In this comparison, we will help you decide which one may be a better option for your financial goals.
In this review:
- At a glance: SoFi vs. CommonBond student loan refinancing
- CommonBond vs. SoFi: Which is right for you?
- SoFi vs. other lenders
At a glance: SoFi vs. CommonBond student loan refinancing
|Fixed APR||3.89% – 8.07%||3.67% – 7.25%|
|Variable APR||2.49% – 7.11%||2.53% – 7.42%|
|Loan Terms||5, 7, 10, 15, 20 years||5, 7, 10, 15, 20 years|
|Loan Amounts||$5,000 up to your outstanding loan balance||$5,000 to $500,000|
CommonBond vs. SoFi: Which is right for you?
SoFi and CommonBond are both popular choices among student loan refinancing lenders, and they offer many similar benefits. For example, neither lender charges origination fees or prepayment penalties, and both have competitive loan rates for creditworthy borrowers.
Both lenders also let you get a loan quote through a soft credit inquiry, which means you can compare rates without affecting your credit score.
With all these similarities, it can be hard to determine which lender is best for you. You can compare the most important details side-by-side in the table above, and you can learn more about each lender in our SoFi Student Loan Refinancing Review and CommonBond Student Loans Review.
But to help you determine which lender might be best for your unique situation, we’ve broken down a few scenarios, below.
- If you need to refinance a large amount
- If you need multiple financial products
- If you want free career coaching
- If you want a long forbearance option
- If you need a cosigner
- If you live in Mississippi, Nevada, or Vermont
- If you want a lender that gives back to the community
If you need to refinance more than $500,000
CommonBond allows borrowers to refinance as much as $500,000 in student loan debt. For most borrowers, that’s more than enough, but if you have a large amount of debt, the limit may be a problem.
SoFi, on the other hand, allows you to refinance up to your total outstanding loan balance. So if you need to refinance more than CommonBond’s maximum loan amount, SoFi will be your best bet.
If you need multiple financial products
SoFi also offers personal loans, mortgages, banking, and investing services. It offers a 0.125% interest rate reduction for members who use more than one lending product.
If you already have a loan with SoFi or know you’ll need to take out another loan in the future, consider SoFi for your student loan refinance. SoFi and CommonBond rates fall within the same range, so SoFi’s loyalty rate reduction could be a deciding factor.
If you want free career coaching
SoFi offers members access to one-on-one career coaching, a unique benefit that CommonBond does not offer.
The service gives you job search assistance, including resume prep and LinkedIn profile tweaking, and a career coach to help you look for a new job or transition to a new industry.
If you want a long forbearance option
SoFi’s Unemployment Protection Program offers up to 12 months of forbearance over the life of your loan. CommonBond offers up to 24 months.
If you need a cosigner
Both CommonBond and SoFi let borrowers add a cosigner to increase the likelihood of approval or a low interest rate.
However, SoFi does not offer a cosigner release option, which means the cosigner remains responsible for the loan until its repaid. CommonBond, on the other hand, offers a cosigner release option after 36 on-time payments in a row.
If you live in Mississippi, Nevada, or Vermont
SoFi offers student loan refinancing to borrowers in all 50 states. CommonBond offers loans in all states except Mississippi, Nevada, and Vermont. If you live in one of those states, SoFi is the clear winner.
If you want a lender that gives back to the community
Through its Social Promise, CommonBond has partnered with Pencils of Promise, which helps build schools in developing nations and provides teachers and students with access to educational technology and resources.
SoFi vs. other lenders
Want to see how SoFi stands up against other student loan lenders? You may also be interested in our comparisons of SoFi vs. LendKey, SoFi vs. Earnest, ELFI vs. SoFi, or Laurel Road vs. SoFi Student Loans.
Author: Jennifer Lobb