CommonBond, one of the largest online lenders in the US, has launched new loan products, and now claims to be the first firm in the country to offer a full suite of student loans solutions.
CommonBond will now lend to undergraduates and graduates, where previously its in-school funding options were only available to MBA students. Its products now span loans for current students, refinancing options for graduates and employer student loan benefits.
The firm acquired student debt management platform Gradible last summer, paving the way for its entry into the employee benefit market.
The newly launched in-school loans carry variable rates starting at 2.87 per cent APR and fixed rates starting at 5.50 per cent APR, and come with a range of repayment options. There’s a social twist too: for every loan funded by the platform, CommonBond also funds the education of a child in need, via a partnership with Pencils of Promise.
In tandem to launching the news loans, CommonBond is introducing a new interactive tool that helps prospective students borrowers to compare the long-term financial impact of different loan products.
“With the price of higher education increasing every year, it’s really important that students, and their parents, get the resources that they need to make informed financial choices,” said David Klein (pictured), founder and CEO of CommonBond.
CommonBond has funded over $1bn in student loans to date, fuelled by a prolific securitisation programme. The firm clinched an A1 rating for a $168m securitisation in October of last year – its highest rating yet.
SoFi, perhaps CommonBond’s most direct competitor, has lent around $15bn to date. But SoFi offers a broader range of products, including student loans, but also consumer loans, mortgages and insurance.