CommonBond offers the usual fixed rate and variable rate loans. But they also offer what they refer to as a hybrid loan . Under this program, your loan is fixed for a portion of the repayment term generally the first five years then becomes a variable rate loan based on the one-month LIBOR index. The loan is designed to reduce the uncertainty of a variable rate loan by maintaining constant payments for the first few years.
To come up with this list of the best student loans of 2020, I used the following criteria in evaluating each lender:
- Loan terms. The longer the loan term available, the lower the monthly payment will be on any student loan. I emphasized lenders with maximum loan terms of at least 15 years, and preferably 20.
- APR range. Interest rates are always a factor when borrowing money, especially on long-term financing like student loans. Both fixed-rate and variable rates ranges were included, and all lenders generally fell within the same ranges on both rate sets.
- Fees. None of the lenders on this list charge application fees, origination fees, or any other fees. Any lenders determined to charge such fees have been excluded.
- Minimum credit score. This criterion is difficult, only because private student loan lenders typically require average or better credit. With the exception of Ascent, which does offer financing for those with fair credit, you may need to get federal student loan financing which typically doesn’t require good or excellent credit.
- Prepayment penalty. Like loan fees, lenders that charge prepayment penalties are specifically excluded from this list.
- How much you can borrow. Naturally, lenders that allow higher loan amounts at least up to $500,000 are preferred. But lenders that provided other advantages were included, even if their maximum loan amount was below that threshold. Continue reading