While many American students continue to fight the uphill battle of the Student Debt Crisis, the American Association of University Women (AAUW) states that women hold two-thirds of U.S. student loan debt, just under $1 Trillion. 

Through centuries, women have displayed the courage to overcome challenges, defy vicious societal norms, and have risen to greater heights of success with each succeeding generation. Women’s History Month is a tribute to celebrate great achievements by women and their contribution to American history. It gives us an opportunity to recognize women’s varied and often under-recognized accomplishments throughout history. 

Coming back to the student debt crisis, datacollected through various surveys clearly points out the prominent existence of the gender gap in student debt loans. Let's have a look at the reasons contributing to this disparity: 

Importance of Education 

Women recognize the power of education and consider it as a valuable asset for financial independence. They are more likely to enrollin college and complete their degrees. They lean on student loans as a tool to afford college education to secure a better future. Hence, women do borrow and accumulate student loans with a plan to pay them off with better future income. 

Advanced Degrees 

Women are more likely to continue with education and opt for advanced degrees. Recent statistics show, women earned 40% more of the graduate degrees than men. This is great for those women who get advanced degrees, but the reality is that they get further buried in student debt.  

Gender Biased Employers 

Women who wish to work face a tough time in achieving equal pay. Women with bachelor’s degrees or higher make 76% of what men do with the same qualifications. Pay discrimination is the most prominent reason for women struggling to repay student loans.  

Bias Against Mothers 

Women who are mothers or are of childbearing age are less likely to hear back from recruiters. The (erroneous) conclusion is that their devotion to family and childcare makes them less committed and unable to put in long hours like their male counterparts, especially at high-level jobs.  

Professional Growth 

Despite advanced degrees and exceeding performance standards, women are denied promotions to executive roles. As suggested by this report, “For every 100 men promoted to manager, only 86 women are promoted.”  

As the title suggests, women in the corporate world face numerous modern-day challenges which deny them an equal footing to deal with student debt as compared to their male counterparts. They are fighting this battle on both fronts. Women face pay discrimination and carry the lion's share of the student debt burden. 

Each of the challenges mentioned above poses a barrier to the professional progress of women. We, as a society, must solve the student debt crisis but we have to recognize that it will take even more to solve the student debt crisis for women. 

Income Share Agreements, also known as ISAs, are a financing method that was first proposed by Milton Friedman in the 1950s. Friedman proposed the idea as a way of selling personal stock. In this agreement, a person agrees to pay a fixed share of their future income for a set period of time, in exchange for an upfront amount of cash. For example, a person who wants to finance $5,000 of student loans could pledge 3% of their income for 5 years. In this case, they would receive the money up front and be responsible for monthly payments that equal 3% of their income.

Over the years, this idea has developed and has been used to provide protection for someone who receives funding. Recently, ISAs have featured a minimum income that people must have in order to be responsible to share their income. If people make below that threshold, normally around $20,000 per year, then they are not responsible for any payments. Most ISAs also feature a payment cap, where you won't pay astronomically more money than you borrowed. This is useful for someone who may start their own business and it does really well.

 Instead of paying back multiple times more than they borrowed, they will only be responsible up to the payment cap. 

With student debt currently at $1.5 trillion and continuing to rise, ISAs have been seen as a way to alleviate that debt. ISAs allow for the person being funded to refrain from taking on debt. However, an ISA may not be for everyone. Before you go straight to an ISA, you may want to think about a few things. If you have not used all of your available federal financial aid, it may be a good option as it offers a robust set of protections. Also, if you expect to make way more than an average person in your degree program, a loan may be right for you. However, if you do not want to worry about the risk if you possibly lose your job or end up making less than expected, an ISA may be a good tool to protect you.

At the moment, only a handful of companies offer these products as a financing tool and these companies can be limited in who they offer their products to. Defynance is one company that hopes to offer this product to all students. Currently they are only offering their product to University graduates with a degree, but are expanding to current students in the near future.

Student loan borrowers have looked to student loan refinancing as a measure to reduce their financial burden. However, refinancing existing student loans with a lower interest rate may lower the financial burden to some degree but it does not eliminate the inherent danger of debt that manifests during financial duress. Defynance has developed a solution that eliminates this danger by eliminating the root cause, the compounding interest. 

Once a student debt holder applies and is approved, Defynance pays off their student loan and replaces it with an income-sharing solution that offers always affordable payments with a fixed term. Let’s understand in more detail how the Defynance solution eliminates the dangers associated with student debt and interest: 

Financial Freedom 

Since student debt is paid off and eliminated from the get-go, Defynance customers can focus on career growth, generating wealth, and their families. They can buy a home, start a family, or even save and invest for a rainy day and retirement. They do not have to worry about compounding interest, or the stressors associated with it.  

Affordability 

Contrary to student loans, Defynance ISAs are customizable as the repayments are tied to your future income instead of a fixed payment based on the interest rate. The obligation to share income ends once the payment term expires irrespective of whether the total payments made are equal to, less than, or more than the amount originally financed.  Plus, how Defynance determines the income share percentage is not pegged to interest rates so the Defynance solution may be even more affordable in the current climate of rising interest rates. 

Flexibility 

Defynance ISA is built keeping in mind that life is not predictable; it is rife with uncertainties. In case of job loss or income falling below a minimum threshold, Defynance automatically pauses payments and proactively works with customers connecting them to their career support resources to find a job, optimize income, and even upskill if required.  Defynance also allows for discretionary deferment pausing payments if life necessitates it like after having a baby or to take care of an ill family member. 

Winning Together 

Not only does Defynance share downside risk, but it also provides various ways to lessen overall payments if income increases significantly.  The career support resources can be an asset in helping to optimize income.  Other features like a payment cap end the income sharing agreement early if income increases significantly.  Prepayment provisions allow for reducing the payment term one month at a time.  Buyout can be exercised to end the agreement at any time with a one-time payment.  Finally, the self-equity mechanism provides greater cash back the better one does in their career.

Focus On Your Future 

The very purpose of Defynance ISA is to empower financial freedom. By eliminating debt, Defynance frees customers to focus on their future, both professionally and personally. By minimizing financial stress, Defynance customers can prosper in their careers by making the right choices instead of choices made under the pressure of student debt.   

The seemingly ever-growing student debt crisis is raising alarms across our nation.   Here at Defynance, we understand that we can’t force the government or other macro forces to act but we can make a difference in every customer’s life and career by removing student debt from day one. So come and insure your future by refinancing or replacing your student loan with the Defynance income-sharing solution.  

Make it your next step towards financial freedom! 

Finding the funds to obtain higher education is a task. While student loans help you get started with your higher education journey, they put you in debt as soon as you graduate. A co-op program as a part of the degree can help fresh graduates tackle student debt more effectively.  

Co-operative education (co-op) is a structured method of combining classroom-based education with practical work experience. A cooperative education experience, commonly known as a "co-op", provides academic credit for structured job experience, and is taking on new importance in helping young people to make the school-to-work transition. The University of Waterloo in Canada embraced co-operative education 60 years ago, combining academic studies with work experience to aid aspiring engineers. In the 2000s, Waterloo partnered with what is now called Blackberry Limited, formerly Research in Motion, maker of the Blackberry device, to hire and train students in hopes they would become employees after graduation. 

Apart from providing academic credits, a co-op program offers multiple fold benefits such as: 

Supplements Tuition Fees 

Co-op programs let a student earn fair wages which can be used to cover the college expenses to some extent. This can also contribute to reducing student debt upon graduation. Though the income earned is not a huge sum, the combination of work experience and pay essentially increases the earning potential by increasing future employability. Besides, if you have sound knowledge of investments, you can further earn returns on your earnings. Something to think about! 

Develop Professional Skills  

Being a part of your curriculum, co-op gives you a chance to bring classroom learning to reality. You can test your knowledge and fine-tune it to industry standards even before you start your professional career. Moreover, you can gain a wide variety of skills, insights, and knowledge that make you highly competitive when you reach the professional stage. While other competitors have only had theoretical knowledge of their field of study, you will have already had real-world experience. 

You also gain a sense of work ethic and industriousness that you can’t solely get from standard classroom education. This will help improve your productivity in academia too. 

Increases Employability 

Co-op work experience enhances your employability factor. Companies constantly seek fresh talent with new insights and thought processes to outperform their competitors. With relevant and substantial work experience on your resume, employers are not just assured of your theoretical knowledge but also your passion for your profession is highlighted.  

Even better, some data indicates that students who graduate with co-op experience tend to start jobs at a higher salary because they enter the workforce with more experience. 

Improves Job Search Skills 

Like any other job, a co-op requires you to go through the same recruitment process as a normal job. Right from searching for a placement, building resumes, and getting through the interview process to finally being hired, co-op refines your job search skills at each stage. After finishing your co-op, you are more acquainted with the industry requirements and how to present your skills to future recruiters. Defynance offers a pool of job search resources to best assist our income-driven student loan refinancing customers and job seekers at large.  

Professional Networking 

As you are not restricted to the classroom setup of learning, there are higher chances of meeting more and more professional acquaintances beyond the student community. We cannot oversell the importance of professional networking. This network is not limited to peers but extends to mentors who can guide you in your professional career on a long-term basis. Also, peers who disperse to work for other companies can be a good source of reference when it comes to job search.  

Though co-ops are gaining popularity thanks to their known benefits, they still need to be established as a measure of reducing student debt. Students can be provided with financial education before signing up for student loans to make well-informed decisions.  

Make sure to check out this compiled list of Top Colleges with Co-Op Programs by AdmissionSight. 

This week, Atlanta witnessed the southeast’s largest event dedicated to financial innovation, Fintech South 2022. I welcomed the opportunity to attend and represent Defynance as a market analyst with our Founder and CEO Farrukh Siddiqui.

Produced by the Technology Association of Georgia (TAG), Fintech South is a global exchange of insights, innovations, and trends fueling the future of the financial technology industry. The event brought together more than 1,500 senior leaders from across the fintech ecosystem, including stakeholders from the payments industry, banking, wealth management, insurance, retail, commerce, government, regulatory, venture capital, startups, technology service providers, and non-profits along with local, national, and international media.

This year, the event was based on three main pillars: Evolution, Responsibility, and Opportunity. Attendees were able to participate in excellent panel discussions on the most trending topics of the fintech industry addressing various upcoming challenges and potential solutions focused on industry growth, innovations, and ways to further enhance customer experience. The breakout sessions were designed to take deeper dives focusing on Payments and Regulations, Fintech and Banking future, Fintech and Gaming, Digital Health + Fintech, Sustainability, and many more intriguing topics. 

Apart from being a source of knowledge sharing and transfer, the event was an excellent hub for networking and making new introductions or meeting old friends and team members to share insights. Everyone was quite excited to get away from their screens and have in-person conversations after doing video conferences for over two years. 

For me, I had an amazing opportunity to connect with our existing stakeholders and meet excellent professionals like Romain Lhéritier, Sarah Woodward, and Susanne Turnbo to name a few. I hope to continue the conversation with them in the future to continue exploring mutually beneficial synergies.  

I also had the chance to visit and learn about the companies in Innovation Alley by visiting their tables.  For instance, I met Jeff Bond whom I should thank for interviewing Farrukh and me about how our work aligns with Conscious Capitalism, a movement he backs. Through his thoughtful questions, he let us explain the purpose behind Defynance, our values, and how we wish to free the American workforce from student debt. 

I have to also mention the Innovation Challenge where Fintech South recognizes innovative fintech startups with ties to Georgia. Selected startups were provided with mentoring and an opportunity to present their ideas to the fintech community and most importantly pitch to their potential investors. In the end, the startup with the best idea was awarded a non-dilutive cash prize of $25,000. 

Our company, Defynance was one of seven Innovation Challenge startups but due to our founder’s prearranged travel, he has not able to pitch live during the judging session, so we didn’t qualify to compete in the top 3.  Farrukh did, however, pitch to investors during day one of Fintech South along with the rest of the Innovation Challenge companies.  Congratulations to Arcum Partners, the winner of the Innovation Challenge! 

Overall, it was a huge learning experience, and I would like to thank Farrukh for presenting me with the opportunity to participate in my first industry conference.  It was a blast and a great learning experience.

Once you have a secure job in the career of your choice, it is time to start thinking about the future and look for investment opportunities.  You need to do more than just save money; you need to get your money working for you. Investments generating passive income offer a safety net in case of future job loss and may even lead to a possible early retirement.  So, what is passive income?  Simply put, it is a way of generating income using money instead of working in a job.  Bankrate.com states that passive income comes from a source other than an employer or contractor. 

Passive income is highly sought after and often misunderstood. It requires an upfront investment, hard work, and a lot of nurturing in the beginning. After putting in time and effort, passive income streams start to build and are able to maintain themselves, bringing you consistent revenue without much effort on your part. Depending on your knowledge, experience, and comfort level, you can pick the passive income stream which suits you the best. Let’s explore some of these streams here: 

Annuities 

One of the best-suited options for generating passive income is annuity contracts. Annuities are contracts that you purchase from an insurance or annuity company with either a lump-sum payment or installments. Eventually, your money will earn interest, and you’ll start receiving monthly payments. Once the annuity has been purchased, there’s no need to participate actively. Compared to stocks, bonds, CDs, etc., annuities offer benefits beyond the income they generate such as tax-deferral and premium protection.  

Dividend Stocks 

You can invest in dividend stocks of a company that distributes part of the company’s earnings to investors on a regular basis. Dividend stocks typically are less volatile than growth stocks and help diversify your portfolio. Investors can also choose to reinvest dividends. You will have to do plenty of research to find good stocks and invest a significant amount of money to receive large dividend checks. However, if you consistently invest money into dividend stocks you can amass a nice residual income over time. NerdWallet compiled a list of 25 stocks with the highest dividend yield. 

Bonds 

A bond is a loan to a company or government that pays investors a fixed rate of return over a specific timeframe. In simple terms, a bond is a loan from an investor to a borrower such as a company or government. The borrower uses the money to fund its operations, and the investor receives interest on the investment. The market value of a bond can change over time. Bonds are a key ingredient in a balanced portfolio. It is a fixed-income instrument and can help absorb the risks in a diversified investment portfolio. Here’s a guide to learning how to buy bonds. 

High Yeilding Savings Accounts or Certificates of Deposits 

If you are lookingto minimize the risk of your investment without putting in much effort, high-yielding savings accounts or certificates of deposit (CDs) are one of the best options to go for. Here you earn returns in the form of interest earned which gets deposited in your account. They are generally backed by FDIC (Federal Deposit Insurance Corporation) which means your principal amount is insured by the government. As they have minimum risk, the returns are less as compared to stocks and bonds. Nevertheless, a CD or savings account will yield better than holding your money in cash or in a non-interest-bearing checking account where you will receive nothing. 

Rental Properties 

Rental properties generally require a higher upfront investment to start generating a regular stream of income. If you have a good amount of accumulated funds, real estate investments can open avenues of income generation. You can be a limited partner in large residential or commercial properties, or you can buy homes and be a landlord. You can also merge earnings from other passive investments to buy a property turning it into a rental property. A cash-flowing rental property is a fantastic way to bring in a monthly income. To make this truly passive you can outsource the running of the properties to a management company.  

Defynance ISA Credit Fund 

Defynance offers investors seeking passive income an opportunity to invest in fellow Americans by eliminating their student debt through the Defynance ISA thereby making an impact without compromising returns.  Plus, there are tax deferral benefits, and the returns are much higher than typical fixed-income investments without sacrificing lower risk and volatility.  Investing in income as an asset can also be a hedge against inflation, market volatility, and interest rates because income has proven to be stable and growing even during recessionary and unstable economic times.  Finally, investors have an option to defer taking income by reinvesting it in more Fund shares.  This allows them to make passive income in the future when they need it most, like during retirement.  Learn more at the Defynnance ISA Credit Fund site.

Approach your financial or investment advisors to discuss the above options before making any investment decisions. 

Job searching is still a stressful exercise even with technological advances that are designed to make it simpler and easier. 

Even the brightest candidates with sound qualifications and experience struggle to find jobs that align with their skills and values. From a mental health perspective, the process is daunting because it requires a lot of patience, constant adjustments, endless networking, and dealing with no after no before a yes is even possible. It is no wonder that job seekers struggle with anxiety and self-doubt. 

There is hope, however. It is possible to avoid letting stress get the best of you. Planning, managing expectations, and self-care can help everyone get through the job-hunting process. Here are some tips and ideas to consider: 

Plan & Organize

Any task can be managed efficiently with good planning. Make a list of jobs available in the market for which you qualify and keep updating it. Instead of applying to each of them, shortlist the jobs that are the best fits. Systematically organize and save details of each job to avoid wasting time when in rush to respond to any correspondence from the recruiter or hiring manager. Your planning and organizing skills can go a long way in making a strong impression on recruiters and hiring managers. 

The Art of the Resume 

Your resume speaks for you before you can speak for yourself. Have multiple versions of your resume for different types of job roles. If necessary, tweak the resume for every job you apply for. Remember, you don’t always have to list experiences chronologically. For example, it is fine to list the most relevant experience first. For jobs, don’t just list your duties but focus on highlighting accomplishments in a quantifiable way so it becomes clear how you can make a difference. Review other's resumes and consult with others like a resume consultant, mentor, or industry expert. You can also check out a few websites which assist you in building strong resumes. 

Treat Job Hunt as a Job 

Schedule your day as you would a workday. Begin your job search activities in the morning and stop by the end of the day (like office hours). Make it a policy to only be on LinkedIn during working hours and don’t forget to take a lunch break. Socialize with family and friends, exercise, run errands, and do all the activities which you normally would avoid feeling like you are unemployed. These best practices will help you stay focused and recharge for the next day. You can also resort to side hustle to keep yourself occupied and maybe take off the financial burden to some extent. This would also prevent you from giving in to the pressure and setting for a not so desired job. 

Keep Learning & Networking 

It can be a good idea to sign up for certifications while you are job hunting. Companies are constantly looking for individuals who are open to new learning. Upgrading your skills to the latest trends can give you an edge. Certifications also pave your way towards a smoother career switch. Get in touch with people in your professional network to learn about how your industry is evolving, what is important to learn, and to seek referrals.

Know Your Triggers 

No one knows you like you. Remember, you will not be able to fool yourself. So, beware of the triggers that lead to anxiety. Do not let yourself get down because job hunting is like a marathon, not a sprint. Create emotional buffers to overcome such emotional meltdowns. Identify the positive triggers and people that can uplift you when you are facing adversity. Rely on them but most importantly, believe in yourself. Our jobs define our identity, and it is true for most of us. If things are not going well, keep an open mind. Perhaps you should explore starting a business or volunteering some time to learn new skills. Do not forget that there is something out there that you will be great at. 

At Defynance we have a career support ecosystem of resources called ROEP to help you successfully reach your goal of finding your dream job. You will find Indeed, Smart Recruiters, Rora, and more. We’re here to help so reach out to us anytime. 

Considering the challenges faced by high school students planning to obtain higher education, it is always advisable to research the student debt landscape as early as possible. In fact, it is never too late to research how to deal with student debt. You should start as early as high school, but also while attending college, or even if you are already in the workforce. This research will play a crucial role in avoiding pitfalls and will mentally prepare you to embrace uncertainties in your education and career journey. For example, 

Before College 

• Check with your family where you stand in terms of college funds. Commit to saving for college as much as possible with something as simple as opening a high-yielding savings account, working while in high school, or even pursuing dual enrollment without compromising grades. 
• Consider inexpensive colleges along with dream schools that may be more expensive. Keep in mind that graduate school will add to costs so it may be better to save tuition to obtain a bachelor’s degree. Another option is to get an associate degree from a community college and then transfer to a well-renowned university to finish the bachelor’s degree. 
• Additionally, keep in mind that in-state tuition is significantly less expensive than out-of-state tuition. 

During College 

• Accurately complete the FAFSA (Free Application for Federal Student Aid). This will open the door for you to secure grants, scholarships, and student loan options. 
• Use scholarship websites and databases to find non-federal grants, and scholarships, and do not forget to search for funding opportunities offered by your university, college, or alumni. 

• If you must take student loans, make sure to maximize the subsidized student loans that defer interest payments until after you graduate.  Do your best to avoid private student loans that have minimal consumer protections and higher interest rates. 
• The most crucial decision during college is to select a major. Especially, if you are passionate about a major that does not have high-income potential, then it is extremely important to minimize student debt. For this, you can: 
• Find a job utilizing your network or through work-study programs.
• Consider taking a semester or two off to work and save more money to pay for tuition
• Carefully manage your budget to live as frugally as possible. 
• Diligently explore scholarships and internships to offset costs and acquire as much experience during school while also getting a head start on building your professional network. 
• Consider colleges and universities that offer co-op majors where you work and complete your degree at the same time to secure money and experience along the way. 

After College 

• Be very careful in selecting your first job. If at all possible, focus on long-term career potential vs. short-term income. This is easier if you were able to minimize student debt. 
• Keep yourself updated with current events happening around the world and understand what implication they could have on your career choice. You surely do not want to end up in an industry or sector where job prospects are declining.
• Find a side hustle to increase your income. 
• Upskill through additional certifications, licenses, or courses to increase your earning potential. 
• Explore refinancing student loans. There are lenders who can help lower your monthly student loan payments, but they typically have difficult qualification criteria. A better option is to have your debt paid off by refinancing the with Defynance ISA.  You will be qualified based on your income and other factors and will never need a co-signer. The Defynance career and life support ecosystem could also help you with career prospects, credit improvement, mental health, and other financial resources and tools.  

May is the month of Mental Health Awareness. For those who have gone to college, the purpose of dedicating a month to this nationwide issue would be incomplete without acknowledging that 90% of student loan borrowers have experienced “significant anxiety” due to their debt burden. A recent survey by Student Loan Planner also showed that, 

• 53% of student loan borrowers have experienced depression because of their student debt, and 
• One in 15 borrowers has even contemplated suicide due to student debt. 

College education helps us on the path to financial freedom but as the cost of this education continues to escalate, it is becoming a financial trap for many mired in student debt. Students are forced to borrow without having complete knowledge about the future implications of the stress that debt will bring to their life. It begs the question, why are we subjecting students to the financial burden of student debt when they should be more focused on academic excellence and launching their careers in the most optimal way possible? 

In the spirit of Mental Health Awareness month, let us now discuss how to first avoid student debt and when applicable manage it to mitigate the stresses that come from it. 

Financial Literacy

It would be ideal if high schools and colleges offered practical financial literacy training focused on managing finances, saving, investing, and other concepts that are crucial to success in career and life.  Here are some resources that we can recommend that will help you become more knowledgeable about basic financial concepts and terms with the hope of encouraging responsible financial behavior leading to improved economic and mental health outcomes. 

• 10 Free Online Personal Finance Courses for College Students 
• 10 Personal Finance Books Every College Student Should Read 
• The Pros and Cons of Student Loans 
• 9 Common Misconceptions About Paying for College 
• Why Financial Literacy Matters for Students of Color 
• 3 Best Personal Finance Books Not About Personal Finance 

Research

Whether you are in high school, attending college, or already in the workforce, research or doing your homework (pun intended 😉) plays a crucial role in avoiding mental health problems. Knowledge is empowering!  It fosters logical thinking, planning, and prudent decision-making.

Self-Care

Academic and financial pressure is bound to get students stressed out. Simple things like indulging in a good diet, exercising or playing a sport you enjoy, and taking some time out for your hobbies can go a long way towards relieving stress. Consider practicing yoga or pursuing meditation and other forms of spirituality to clear your mind and stay away from negativity. Indulging in self-care can also boost your energy levels making it easier to complete assignments, quizzes, job responsibilities, etc. 

Ask For HELP

There might be moments when you feel stressed out due to financial pressure and other negative factors.  During such times, seek guidance. You can get access to professional help on mental health-related issues. Click here to view a few of them. You can also reach out to us for financial tips, career guidance, or how to best manage student debt. 

Family & Friends

Finally, don’t forget about family and friends who can be a wonderful support system throughout your life. Make sure to share your difficulties with them and talk about your emotions around the challenges you might be going through. They may or may not offer the right solutions but just sharing with your loved ones can go a long way to relieving stress and anxiety.