What is the difference between consolidating and refinancing

Posted by / 05-May-2020 20:21

We are therefore able to provide funds to these creditworthy borrowers at more affordable terms. The federal government offers income-based repayment and special forgiveness programs for borrowers in public service professions.Graduates with federal loans working in such industries may therefore prefer to keep their federal loans to maintain these extra borrower protections. Similar to federal student loans, under certain circumstances, including for economic hardship, you may be eligible for loan forbearance.In this case, you may temporarily postpone making monthly loan payments for a specific period of time.Founded in 2011 by three Wharton MBAs, Common Bond is an online lending company that makes education finance better.If that market benchmark rate increases, so too would your rate, and vice versa (as the market benchmark rate decreases, so too would your rate).Our investors believe, as do we at Common Bond, that creditworthy borrowers deserve lower rates than traditional institutions have provided in recent years.As the Common Bond Family grows, we will continue to host events to connect our members to incredible people (including each other) who can help them grow personally and professionally, and to offer direct opportunities for our members to take action in their own communities. Our refinance program does not require loan certification by your school's financial aid office.Common Bond's refinance products allow graduates to replace their existing educational loans - whether federal or private - with those provided by Common Bond. Common Bond and the refinance loan product are neither endorsed by nor affiliated with any educational institutions.

When comparing Common Bond to the federal government and other private lenders, many students choose Common Bond due to 1) our best-in-class customer service, 2) a greater diversity of low interest rate products, 3) access to our talented, successful community of members (what we call the "Common Bond Family"), and 4) the social mission of our business (what we call our "Social Promise").We like to think of our community as our family: a group of optimistic people who believe in the power of new ideas to change the world.The community comes together in several meaningful ways: networking opportunities, panels and speaker events, dinners in cities across the country, career assistance, and support of our non-profit partners. That means if you are an international student, we are not (currently) able to lend to you, but we are working to change that.Common Bond can refinance federal, private and previously consolidated loans.An interest rate is "fixed" if it remains unchanged over time, while a "variable" interest rate changes over time based on fluctuations in a market benchmark rate.

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Some variable rate loans have a "cap" - a rate the variable interest rate cannot exceed.