Student loan refinancing with low interest rates and big member perks.
Winner snapshot
 |
 |
|
|---|---|---|
| Lowest rates |
|
|
| Strongest reputation | Tie | Tie |
| Widest lending limits |
|
|
| Lowest fees |
|
|
| Fastest turnaround |
|
|
An overview of SoFi and CommonBond
SoFi and CommonBond have a lot in common. They’re both online lenders that have been in the student loan business for less than decade but have become go-to companies for student loan refinancing.
SoFi might be a better choice if you’ve already established your credit and want to take advantage of customers perks such as member events and career guided workshops.
CommonBond offers similar perks to SoFi— though not as many. But it also but specializes in MBA refinancing and puts part of its profits funds education for children in need across the world.
First, am I eligible to apply with SoFi or CommonBond?
SoFi
To meet SoFi’s eligibility requirements, you must:
- Have good to excellent credit.
- Be at least 18 years old and a US citizen.
- Apply for a $5,000 minimum loan balance.
- Have an associate’s degree or higher level of education.
- Be employed or have a job start date within 90 days.
CommonBond
To meet CommonBond’s eligibility requirements, you must:
- Have good credit or a creditworthy cosigner.
- Be at least 18 years old and a US citizen.
- Apply for a $5,000 minimum loan balance.
- Have a bachelor’s degree or higher.
Which lender offers lower interest rates?
SoFi
Variable rates for student loans start at 2.43% and fixed rates start at 3.49%.
CommonBond
Student loan variable rates start at 2.55% — fixed rates start at 3.35%.
-
Winner: CommonBond
CommonBond’s starting variable rate is lower than SoFi’s. CommonBond also has more options for refinancing student loans. The hybrid loan is also something to look at if you’re in the market for a 10-year loan and are unsure if you want a fixed or variable rate.
Which comes with fewer fees?
Neither SoFi nor CommonBond have origination or prepayment fees, so it all comes down to late fees. SoFi borrowers have a 15-day grace period before they’ll have to pay a late fee of 4% of the payment or $5 — whichever is lower. CommonBond has a 10-day grace period, after which borrowers will have to pay a late fee of 5% or $10.
-
Winner: SoFi
Though you should try to avoid paying late fees, if it’s impossible to get your payment in on time, SoFi is the cheaper choice.
Morgan refinances $100,000 of student loans
After five long years of college and a lot of soul searching, Morgan finally graduated with a bachelor’s in media studies — and a whopping $100,000 in debt. They knew it was going to be hard to pay off no matter what, but they heard refinancing could help cut down on interest.Since Morgan just got a high-paying job, they decided to explore their options for variable rate loans in the hope that they could pay it off quickly on a lower interest rate. They narrowed their choices down to SoFi and CommonBond. Here’s how they compared:
| SoFi | CommonBond | |
|---|---|---|
| Starting APR | 2.43% for 5- and 10-year variable loans. | 2.55% for 10-year loans. |
| Upfront fees | None | None |
| How much can I borrow? | $5,000 to full balance of your qualified education loans | $5,000 to $500,000 |
| How easy is it to apply? | Easy online application with money disbursed in 7–10 days | Easy online application with money disbursed within 10 days |
Morgan decided to go with CommonBond because it offered lower interest rates that would increase at a lower rate than SoFi.
What are the perks?
SoFi offers services that are good to have, but aren’t all necessary for a student loan. While it also woos the borrower with extra benefits, CommonBond has a social mission to push forward an educational outreach program to the underserved.
Both lenders offer:
- Autopay discounts.
- Consolidation of both federal and private loans.
- Option to roll over your existing grace periods when refinancing.
- Option to refinance a Parent PLUS Loan into the student’s name, often at a lower rate.
- Deferment periods.
How are these two lenders different?
SoFi
On top of SoFi’s autopay discount, it offers an additional 0.125% rate discount if you already have a loan with it. There are a few options for loan forgiveness if you’re eligible, they include teaching, public interest work and entrepreneurial efforts. Where SoFi falls short is that it don’t offer cosigner release or accept applicants from Nevada. Bar study and residency loans are a no-go as well.
CommonBond
CommonBond has student loan refinancing options for MBA students. It also offers deferments up to 32 months. The CommonBond program rivals the SoFi community in that they both offer a career support system as well as a social network. The hybrid loan is also an untraditional spin on a loan that could work out to be beneficial. CommonBond does require a cosigner and offers a cosigner release after two years of consecutive payments — but it isn’t guaranteed. CommonBond is not available in Idaho, Louisiana, Mississippi, Nevada, South Dakota and Vermont.
Which has a better reputation?
SoFi
SoFi comes in strong with a 9.5 Trustpilot score as of December 2018. Speedy customer service seems to be the norm and it has several ways to reach out including email, chat and social media — seven days a week. It’ll also take into account your financial history when reviewing your application.
CommonBond
CommonBond isn’t rated on Trustpilot as of December 2018 but it has a customer-first model that can make you feel valued and informed. Use the live chat option via the website to answer your questions in seconds. However, it doesn’t have an onsite calculator to give you a rough idea of your loan rates and some users have claimed that the approval process took longer than promised.
-
Winner: Tie
SoFi and CommonBond are both legitimate companies. Although SoFi has raving customer reviews, CommonBond has a charitable mission that attracts socially-minded people.
How much can I borrow with each lender?
SoFi
Student loan minimum is $5,000 and the maximum is full balance of your qualified education loans.
CommonBond
Student loan minimum is $5,000 and the maximum is $500,000.
-
Winner: SoFi
Since SoFi can refinance up to 100% of your student debt, while CommonBond’s maximum is $500,000, SoFi wins for lending limits.
Which lender can get me money faster?
Both lenders can get you money fast. When you apply they’ll give you preapproved rates determined by a soft credit pull. If you decide to refinance a loan, a hard credit inquiry is required to give you the most accurate rates and terms.
SoFi
SoFi typically disburses money anywhere between seven to 10 days, that is if you have provided all documents required.
CommonBond
CommonBond typically disburses money within 10 days of signing your final documents — your funds are then mailed to your lenders and that payment is typically received within one to three weeks.
-
Winner: SoFi
This really depends on how fast you can get your documents together, but most likely if everything is in order, SoFi will disburse your funds faster.
Which is more cosigner-friendly?
SoFi
You can bring on a cosigner to help you qualify for a more competitive rate at SoFi. But you’ll have to meet its eligibility requirements on its own.
It also doesn’t offer cosigner release so you have to refinance if you want to move the loan into your own name.
CommonBond
CommonBond allows you bring on a cosigner to help you get approved or qualify for a more competitive rate. You can apply for cosigner release after making two years of consecutive on-time repayments.
-
Winner: CommonBond
A cosigner can help you get approved if you apply with CommonBond — and you don’t need to apply for a new loan if you want to remove them from your loan.
Bottom line
In the end, CommonBond seems to have more flexibility and advertises lower rates. That being said, these two companies have a great deal in common. They both roll out the red carpet for their customers and have solid customer service teams. SoFi can refinance larger student loan debt balances and often with a shorter turnaround time. CommonBond has an admirable social mission of providing education to the underserved, if that’s of interest to you. Before deciding on either, it’s a good idea to check out all of your options — you might find something even better out there.
See how other top student loan providers compare
| SoFi vs. Laurel Road | |
| SoFi vs. Earnest | |
| SoFi vs. CommonBond vs. Earnest | |
| LendKey vs. SoFi |
Frequently asked questions
Disclaimer
Fixed rates from 3.49% APR to 8.074% APR (with AutoPay). Variable rates from 2.43% APR to 6.65% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.43% APR assumes current 1 month LIBOR rate of 2.43% plus 0.04% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
SoFi unemployment protection If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly.
