Listen Money Matters - Free your inner financial badass. All the stuff you should know about personal finance. Inside CommonBond with David Klein
You know we at LMM want to help you any way we can to reduce your student loan debt. David Klein joins us to discuss refinancing to save you money.
CommonBond is a student loan lending platform that provides lower cost financing to graduate students and graduates. They started out as a pilot program at one school and now they have expanded to over 109 programs.
The federal government holds over 90% of student loans. They set the same rate which inflates them for credit worthy borrowers. When David went back to school in 2011, his rate was 8%. He saw an opportunity and with his two partners started CommonBond.
CommonBond works a bit like Lending Club. Borrowers save money when they refinance, on average, $10,000 over the life of the loan and investors have access to a kind of investing that was largely closed to them in the past.
What should you look at before deciding on grad school? First, the median salary for the field you’ll be studying. Then look at your loan options. You want a low interest rate but also calculate what your monthly payment would be.
CommonBond offers a hybrid loan, the first of it’s kind on a national scale. It’s a fixed rate loan for the first five years and variable thereafter. There is a cap on the variable rate of 10.99%.
CommonBond also offers forbearance for three months at a time, up to twelve months in cases of economic hardship. They will also help you find a job within their community. They also offer paid consulting work.
There is no reason not to refinance other than the hassle. CommonBond has streamlined the process to make it as quick and easy as possible.
CommonBond has partnered with Pencils of Promise to help fund education for students who would otherwise not be able to afford it. More Millenials doing good things in the world!
What can you do if you’re having problems paying your loans? Call your lender directly and inform them of your situation. They should be able to help you out. If they won’t, refinance with CommonBond because they will.
Show Notes
CommonBond: Refinance your graduate school loans.
Betterment: The easy way to invest.
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