Student loans

CommonBond to scrap student loans: Here’s what it’s focusing on instead

CommonBond plans to drop its student loan side in mid-June and focus elsewhere. (iStock)

CommonBond Fintech Lending Company announced earlier this month that he’ll ditch his student loans and focus on something he says will save homeowners money on electricity and reduce their carbon footprint.

The company will now focus exclusively on solar financing, a move that was first announced in February. CommonBond’s solar business quickly became the largest and fastest growing after its launch in 2021.

“We are excited about the impact we are having in the residential solar market,” David Klein, co-founder and CEO of the company, said in a statement. “Every day we hear the stories of our customers who are saving money on their electricity bill and reducing their annual coal consumption by tons – literally, tons – thanks to the adoption of solar energy that we It’s incredibly rewarding.”

Now the company is ending its new student loans by June 15. For those who already have CommonBond private student loans, the move will not change anything and their loans will continue to be managed by Firstmark Services.

If you’re looking for the right student loan for your situation, you can browse lenders through an online marketplace like Credible that lets you compare multiple options.

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CommonBond bets on green loans

CommonBond also plans to expand its green lending and has announced its ambition to enter other green lending markets. The company said consumers are looking for ways to reduce their carbon footprint, and it is looking to expand and provide the financing to make it possible.

“It’s a giant leap,” said Brian Hirsch, managing director of Tribeca Venture Partners and CommonBond board member. “We are still very early in the cycle of consumer adoption of renewables, and there need to be catalysts for mass adoption. Digital native financing is one of those catalysts, and it is one of the main strengths of CommonBond.”

Solar panels and the installation of a residential solar system can cost the average homeowner nearly $25,000, and most homeowners pay between $17,000 and $32,000 for green power. But the costs can increase if, for example, the roof has to be replaced or the trees have to be removed.

When the move to solar was first announced, CommonBond said it would move into space because:

  • More than three-quarters of its customers either own a home or intend to buy one “within three years of refinancing their student loan with the company”
  • It seeks to ‘address unmet market needs’ using ‘scalable lending technology’
  • Solar impact is in line with the company’s mission

If you are interested in solar panels and are looking for financing options for them, consider using a personal loan. Visit Credible to compare multiple lenders at once and choose the one with the lowest rate and best loan terms for you.

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How to change student loan officers

CommonBond’s move to solar loans will not affect borrowers who already have a student loan through them, as those loans will continue to be serviced by Firstmark Services. However, if you are looking to switch student loan officers, there are several ways to do so.

Federal student loan borrowers cannot choose their loan officer when they first take out the loan. However, if they are looking to consolidate their payments or make future changes, they can also choose a new repairer. Federal student loan holders can choose a new servicer when they consolidate their payments, apply for Public Service Loan Forgiveness (PSLF), apply for total disability release, or if their loan is transferred by the Department of Education .

The other way to switch student loan officers is to refinance. This option is available to both federal and private student loan holders, but the former will lose federal benefits such as income-driven repayment plans or student loan forgiveness programs if they refinance.

If you are interested in refinancing your student loan in order to change managers or reduce your monthly payment, contact Credible to speak to a student loan expert and get all your questions answered.

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.