Also Announces Company Milestone, Surpassing $100 Million in Loans Funded
NEW YORK, Oct. 22, 2014 -- CommonBond, a premier student lending company, today introduced an industry-first student loan product at national scale called the "Hybrid Loan," a loan that carries a fixed rate initially and a variable rate after a set period of time. These loan terms allow borrowers to lock in the certainty of a fixed rate while taking advantage of certain variable rate benefits, such as lower rates and lower monthly payments. This product expansion occurs as CommonBond announces surpassing $100M in funded student loans in its first full operating year.
The "Hybrid Loan" is unique – and combines favored features of both fixed and variable rate loans – in that it minimizes the amount of total interest paid over the life of the loan relative to longer term fixed rate products, and it reduces the size of monthly payments compared with shorter term fixed rate products. The "Hybrid Loan" offers an APR that ranges from 3.82% to 5.94% (with autopay).
"The new 'Hybrid Loan' was designed to provide borrowers with more options to help them better match their student loan payment goals with their personal financial situation," said David Klein, Co-Founder and Chief Executive of CommonBond. "Our goal is to have the broadest impact possible. As we expand, we continue to listen to our borrower community, and incorporate their feedback into what our products are and how we deliver them.
My co-founder, Mike Taormina, and I started CommonBond to create the company we wished was around when we needed it. We wanted great rates and best-in-class service from a company that cared – so when our borrowers ask for the same, we get it... and we give it." CommonBond introduces the "Hybrid Loan" as the company surpasses a key milestone in its first full operating year: $100M in funded loans. With $100M in loans funded, the company will help borrowers save about $10M in interest payments over the life of repayment by refinancing through CommonBond. In the next two years, the company expects to exceed $1B in loans funded.
Since launching nationally in September 2013, CommonBond has quadrupled its product offerings and now, with the introduction of the "Hybrid Loan," offers the most robust set of loan options in the U.S., for those consolidating and refinancing their student debt. Since launch, the company has also expanded its eligible borrower market from 20 business schools to 109 graduate MBA, law, medical, engineering programs and plans to expand to even more degrees and schools in the near future. With customer service at the center of the company's mission, CommonBond recently more than doubled the size of its "Borrower Care Team" and continues to hire new talent for its marketing, product, investor sales, and tech divisions.
CommonBond is a leading values-driven financial services company dedicated to delivering a better student loan experience through savings, exceptional service, and social good. Founded by three Wharton MBAs in 2011, CommonBond has raised over $100M to fund and refinance student loans and has expanded to more than 100 degree programs throughout the United States. CommonBond is also the first company to bring the "1-for-1" model of social good to education and finance: For every degree fully funded on the company's platform, CommonBond funds the education of a student in need abroad for a full year through a partnership with Pencils of Promise. For more information, visit www.commonbond.co