student loan refinancing 101
TRANSCRIPT
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Student Loan Refinancing 101
Presented by Dave at CommonBond
Get the scoop:What is refinancing?Who is CommonBond?Is refinancing right for me?What else do I need to know?
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
You’re not alone: student loan debt can feel overwhelming
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Over 70%1 of students have loansthat impact their life milestones
are delaying wedding plans2
are delaying home ownership2
are delaying the vacation of their dreams2
46% 69% 78%
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Average student debt by degree
Undergraduate Graduate JDMBA MD DDS
Sources: Debt statistics - Undergraduates: Edvisors; Graduates: U.S. News & World Report; MBAs: U.S. News & World Report; Doctors: Association of American Medical Colleges; Dentists: American Dental Education Association; Lawyers: U.S. News & World Report
$0
$50
$100K
$150K
$200K
$250K
$35k $57k $56k $112k $176k $247k
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Refinancing your student loans can help you save
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
What is student loan refinancing?Refinancing means taking out a new loan to replace an existing loan
You can refinance federal, private, and previously consolidated student loans
Lenders pay off your existing loans, and create a new loan for you at a lower interest rate
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
What are the benefits of student loan refinancing?
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
SavingsLower interest over the life of your loan Ease
One lower monthly payment
Defer payments if you go back to school or lose your job
RelationshipService and trust from a lender you can grow with
Protections
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
CommonBond can refinance your loans and save you thousands
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
CommonBond delivered over $60,000,000 in savings on student loans
2.14% APROur lowest interest rate
(5 year variable)
$14,581Average member savings4
3Number of
refinancing products
2,000+Students educated
through our social promise
70%How much lower our
interest rate is versus the grad plus government rate5
3
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Why are CommonBond's rates lower than the government's?
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
We use technology and data to get to know you...
Free Cash Flow
Earnings Potential And many more...
Location
Education
Credit HistoryYOURRATE
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
LowestCommonBond Rate (Variable)
4.65% APR
2.14% APR
Savings = $14,5814
(Assumes loan balance of $100,000)Savings = $25,1466
(Assumes loan balance of $100,000)
AverageCommonBondRate
7.21% APR 7.21% APR
Federal GovernmentGrad Plus Rate5
Federal GovernmentGrad Plus Rate5
so we can give you a lower rate...
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
...on our products
Variable rate loan:Rate changes based on
LIBOR fluctuations7
Fixed rate loan:Rate (and therefore payments)
remain consistent7
Hybrid rate loan:Rates are fixed for 5 years, then variable for 5 years7
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Our members save big...
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Education BA, Kalamazoo College MSPH, Tulane University MD, University of Michigan Medical School
Noah saved $16,000
When you graduate from medical school, you feel like you are chained
to the giant weight of your loans. It can feel demoralizing, but what CommonBond did is allow my optimism to return."8
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
How do I know if refinancing is right for me?
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
v
Save with a lower interest rate
Consolidate into one monthly payment
Discharge your obligation in the event of death or disability
Add a co-signer to potentially reduce your rate
Take advantage of income-driven repayment
Use public service loan forgiveness
Receive job search support
Refinancing with CommonBond
Benefits Keeping your federal student loans
Let's compare
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
What else do I need to know?
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Here’s what you need to refinance with CommonBond
Good credit score (typically 670+)
Proof of employment
U.S. citizenship or permanent
residency
3 documents:Proof of residence
Proof of incomeCurrent loan statement
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
CommonBond gives you more than just a low rate
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Our friendly care team is a click, call or chat away
(800) 975-7812CALL CHATEMAIL
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Your loan funds the education of a child in need
The WhatWe partner with Pencils of Promise to fund the cost of education for children in need
This is the first 1-for-1 model in finance and education
The WhyWe believe business can and should be a positive force for change
The ImpactOur loans have funded the education of 2,000+ students to date
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
This is our impact in action
Whenever I come to school I learn something
new, and I love sharing new things I have learned with my brothers and sisters." —Patience
My dream is to become a medical doctor…I look
at how much Pencils of Promise is helping me and the rest of our community with education, and I would like to do the same for peoples’ health.” —Frances
Without this scholarship, I’m not sure if I would be
able to come to school now, and I certainly would not be able to progress to SHS (Senior High School), so for that I am very grateful." —Neikitua
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Join us for fun (and free!) events from coast to coast
Entrepreneurship Events
Expert PanelsCareer PanelsMember Dinners
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
...and more!
A quick guide to lower rates, bigger savings,and greater financial freedom
STUDENT LOAN REFINANCING 101
Content You Care About
Experiences and Awards
Surprises to Delight You
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
Thank you!
REFINANCING COMMONBOND IS IT FOR ME? WHAT ELSE?
■ 1Undergraduate: The Institute of College Access & Success; Graduate: The College Board.
■ 2 CommonBond survey of 1,000 Millennials With Student Debt. February 2016.
■ 3 Total savings calculated by multiplying average savings number ($14,581) by the total number of CommonBond members in January 2016.
■ 4Savings calculation of $14,581 is based on loan amounts and terms selected by CommonBond borrowers who refinanced their student loans between 5/15/15 and 6/30/15. Savings is calculated as the difference between borrowers’ estimated future payments for a sample of previously held loans and their future expected payments after refinancing with CommonBond. The calculation is a weighted average dollar savings across loan terms and assumes no change in interest rates, on-time payments, enrollment in ACH, and no pre-payment of loans.
■ 5 Calculation is based on the Direct Plus Rate is for Loans disbursed between July 1, 2014 and June 30, 2015 and lowest interest rate offered by CommonBond on March 14, 2015.
■ 6Savings calculation of $25,146 is based on borrowers’ estimated future payments for a Direct PLUS loan at 7.21% and their future expected payments after refinancing with CommonBond at a 10-year variable rate loan at 2.93%. The calculation assumes no change in interest rates, on-time payments, enrollment in ACH, and no pre-payment of loans.
■ 7For more information, please see disclaimers page at https://commonbond.co/disclaimers. For rate information, please see refinancing rates page at https://commonbond.co/refinance-loan-rates. Offered terms are subject to change. Loans are made by CommonBond Lending, LLC (NMLS # 1175900).
■ 8Individuals portrayed as CommonBond members are actual clients and were compensated for their participation.
Appendix