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Commerce Bank Review

Commerce Bank offers student loans in addition to many other banking and investment products. It has a quick application process and flexible repayment options, which can help you manage the interest that accrues while you attend school.

Our Verdict

Commerce Bank has good rates and flexible options for repayment, making it a good option for student loans.

For

  • Co-signers can be released after 12 on-time payments.

Against

  • Loan terms aren’t as flexible as other lenders.

Commerce Bank offers student loans in addition to many other banking and investment products. It has a quick application process and flexible repayment options, which can help you manage the interest that accrues while you attend school.

The application process can be done online and can be completed in as little as 15 minutes. Documents can be signed online, too, which means you won’t have to go to a physical branch.

Because a Commerce Bank student loans are unsubsidized, they will accrue interest while you attend school. Commerce Bank gives you some options to keep the interest in check while you’re in class. For example, you can make monthly interest-only payments and you’ll get an interest rate than is 1% lower than the rates for a loan that is deferred. Or you can make a minimum monthly payment of $25 and get a 0.5% reduction on your rate. Another option is to defer payments until you’ve completed school, but there is no interest reduction if you defer. The deferment option also includes a six-month grace period.

Loan terms range from 5 to 15 years. Interest rates can be fixed or variable, though unlike some other lenders, the different types of rates can be applied to loans no matter the terms. Some other lenders won’t extend longer terms to loans with fixed rates. Interest rates vary depending on a variety of factors, including creditworthiness and the college you attend. In addition to rate discounts for making payments while in school, you can get 0.25% knocked off your rate if make automatic payments.

One way to increase the likelihood of your application being accepted is to find a co-signer. You may be able to get a lower rate as well. There’s some risk to your co-signer, as they may be liable if you miss payments. Co-signers can be released from the loan after you make one year’s worth of payments and meet other requirements, including a credit review.

Another advantage of getting a loan through Commerce Bank is they have partnered with Chegg, a textbook rental and tutorial company. If you’re approved, you get four free months of access to Chegg Study, which includes expert Q&A and 30 minutes of online tutoring.

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