Defynance - Blog

Beyond the Pay Gap: The Hidden Burden of Student Debt on Women

Mon, 10 Mar 2025 21:29:23 +0000

Did you know that women in the U.S. hold nearly two-thirds of the nation’s $1.7 trillion student debt? which is nearly 67% of all U.S. student loan debt, or approximately $929 billion. As we mark International Women’s Day, it’s crucial to shine a light on the hidden financial struggles women face.

Women, particularly women of color, carry a heavier student debt load than men, women earning a bachelor’s degree graduate owing an average of $2,700 more than their male peers a burden that compounds over time due to systemic inequities like the gender pay gap and higher education costs. This debt doesn’t just affect their wallets; it shapes their futures and restricts opportunities.

One of the biggest reasons of this disparity is the gendered wage gap from the beginning of the career. Women graduating with a bachelor’s degree are expected to earn $35,338 on average, which equates to approximately 81% of what men are anticipated to earn. Female borrowers typically require more education to earn a wage equal to less-educated men. Women earn just 85 cents for every dollar compared to what their male counterparts make, leaving them with less income to allocate toward student loan payments. According to an AAUW study, this pay gap directly impacts their ability to repay debt while men pay off 13% of their student debt annually, women can only afford to pay 10%.

Other contributing factor is the higher enrollment of women in for-profit institutions. Women make up 63% of students at for-profit colleges, compared to 55% at public four-year colleges. Compounding this issue, the average tuition at for-profit colleges is double that of public colleges—16,000 versus 8,000, respectively.

Many of the fields that attract a higher proportion of women, such as education, social work, and healthcare, require significant education but offer lower salaries. Surprisingly, some of the industries with the largest pay gaps had the greatest shares of female workers. A study from GAO (Government Accountability Office) looked at the gender pay gap across 14 broad groups of industries, and found that the pay gap was largest in the health care and social assistance industry. In these fields, women made up 77% of workers and earned only 43 cents on average compared to every dollar earned by men.

Women disproportionately shoulder the burden of care giving, often taking on unpaid roles caring for family members, particularly older relatives or those with disabilities. Unpaid care work is essential to the functioning of society, but it often goes uncounted and unrecognized. By 2050 women globally will still be spending on average 2.3 more hours per day on unpaid care work than men based on the current trajectory.

These factors are hindering women's economic security, wellbeing, and career expectations. Many women delay purchasing a home, starting a family, or saving for retirement due to student loan obligations. The stress of student debt can lead to anxiety, financial insecurity, and limited career choices. Women may feel forced into jobs that prioritize immediate loan repayment rather than pursuing fulfilling, long-term career growth.

Key Steps To Alleviate the Financial Burden on Women:

Decrease the Wage Gap: Ensure fairer wages across genders through legislative measures like the Paycheck Fairness Act.

Make Education Affordable: Reduce tuition costs and increase grant access to lower the need for excessive borrowing.

Extend Loan Forgiveness: Expand income-driven repayment plans and loan forgiveness options tailored to women-dominated fields.

Increase Funding for Public Colleges and Universities: Provide sufficient funds and support so that women have tuition- and debt-free options to complete their education.

Improve Financial Literacy: Women’s empowerment and financial literacy go hand in hand. As an example, teaching women to find the best ways to fund their education more affordably, and enabling them to negotiate salaries and benefits will help them gain financial freedom.

The student debt crisis is more than a financial issue; it’s holding women back from achieving their potential and living life to the fullest. We hope that this International Women’s Day, we make progress in tackling the hidden burden of student debt—one step closer to a fairer, more equitable world.

2025's Financial Forecast: Goals and Strategies for a Brighter Year

Fri, 03 Jan 2025 15:44:02 +0000

Happy 2025! With a new year comes a renewed focus on financial well-being. While some economic uncertainties linger from 2024, a spirit of optimism is taking hold. Many Americans are looking to solidify their financial foundation and achieve long-term goals. So, what are the top trends we'll see in personal finance this year?

1. Debt Demolition: High interest rates remain a concern for many, making debt payoff a top priority. A recent survey by Bankate revealed that over 20% of Americans named debt reduction as their primary financial goal. This focus is especially strong among older generations – Gen X and Baby Boomers are prioritizing debt repayment at a higher rate than younger demographics.

2. Building a Safety Net: The importance of a robust emergency fund can't be overstated. Unexpected expenses can derail even the best financial plans. Experts typically recommend saving enough to cover 3-6 months of living costs. 2025 is a great year to prioritize building this safety net, ensuring you can weather financial storms with peace of mind.

3. Saving for the Future's Sake: Whether it's retirement, a child's education, or that dream vacation, saving for long-term goals continues to be a significant motivator. With a focus on responsible budgeting and smart investing strategies, 2025 can be the year you make significant progress towards those milestones.

4. Boosting Income Streams: While inflation may be cooling down, increasing your income can be a powerful financial booster. Consider exploring opportunities to negotiate a raise, take on a side hustle, or invest in skill development that can lead to higher-paying jobs.

5. Financial Literacy for All: Financial literacy is no longer a luxury – it's a necessity. In 2025, a growing number of people are prioritizing financial education. This includes learning how to budget effectively, manage debt responsibly, and invest for the future.

Taking Charge of Your Finances in 2025

No matter your financial goals, 2025 is the perfect time to take action. Here are some steps to get you started:

Set SMART Goals: Specific, Measurable, Achievable, Relevant, and Time-bound goals will keep you on track
Create a Budget: Track your income and expenses to identify areas where you can save.Several free budgeting apps are available online.
Develop a Plan: Break down your long-term goals into smaller, manageable steps.

Remember, financial wellness is a journey, not a destination. With the right approach, 2025 can be the year you build a strong financial foundation for the future.

Ready to take control of your finances in 2025? At Defynance, we specialize in assisting recent graduates with student loan refinancing - we can put you on the fast track to eliminating your student loan debt. Want to learn more? Visit www.defynance.com and embark your journey toward financial freedom!

Get Started Now

Benefits Of Networking For Professional Growth

Wed, 28 Feb 2024 20:52:57 +0000

"Networking" is a widely used term by professionals and entrepreneurs at various levels. It usually means connecting and socializing with new people from your industry or others that could influence your industry's ecosystem. The factor that differentiates it from social networking is the intent of mutual benefit through the exchange of ideas, information, and recent developments in the industry.

When used wisely, professional networking can help in recruiting employees, build connections within employer networks, establish relationships with recruiters, build credibility with investors, and even foster meaningful life-long friendships. It also helps in identifying multiple opportunities and acquiring knowledge about changing industry trends and norms so that you can continue to shape and advance your career.

Some of the key benefits of professional networking are listed below:

Makes you proactive

The corporate world is dynamic and constantly evolving. Well-channeled networks both inside your workplace and other professional platforms, keep you updated with first-hand information about current events, giving you sufficient time to react to changes and even become an early adopter when necessary.

Job Seekers Tool

Networking makes you more noticeable to recruiters who are frequently seeking talented professionals for their companies. Also, research has shown that around 70% of job opportunities are not published in public domains. They are actually filled through networking connections. Furthermore, a good network gets you referrals which improves your chances of landing your dream job.

Professional Growth

As a working professional, you are expected to stay updated with ever-changing industry standards and best practices. Having a vast network ensures that you always stay in the know and ahead of your peers. Apart from employment, networking provides credibility among investors, begins to establish your thought leadership chops, and can be critical to the discovery process of starting your own venture.

Exchange of Ideas

A vibrant network fosters the sharing of ideas to sustain long-term relationships and mutual trust. As there is always room for improvement, techniques, and tools for better performance are always out there on the market. Professional networks provide access to this pool of information to establish best practices in and out of work.

Mental Well Being

The constant chase of professional goals and mounting pressure to outperform yourself can be overwhelming. As the time spent working increases, developing work friendships prove beneficial in reducing stress. As this short story illustrates, the friends you make through these professional networks can become a part of your life in the long run. Moreover, the workplace itself can become enjoyable when you are friends with your colleagues as you pursue passions and dreams together.

Despite the proven advantages of networking, some professionals might find it difficult to engage with strangers in the first go. However, making an effort in this direction has become easier due to the presence of online networking platforms like LinkedIn where you can first e-meet a person and then take it forward from there. Signing up for professional groups or communities too can help break the ice.

At Defynance, we offer ROEP, a resources ecosystem envisioned to build a community of professionals who can help achieve professional success as partners in your journey. Visit us to learn more about career growth.

Is Student Debt A Modern Day Challenge for Women?

Wed, 28 Feb 2024 20:52:57 +0000

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.

Important Factors To Consider When Refinancing Student Debt

Wed, 28 Feb 2024 20:52:57 +0000

As confusion and uncertainty around student debt repayment mounts, more and more borrowers are considering student loan refinancing options. Recent developments indicate that the student loan repayment freeze may get extended further.

When you refinance, a lender pays off your existing loans with a new one at a lower interest rate. That can save you money in the short and long term. To begin exploring student debt refinancing, you should keep a few key considerations in mind:

Credit History

Make sure to have a good credit history by making timely payments not only towards student debt but also other obligations like mortgages, car payments, and any credit cards. A high credit score can help you qualify for lower interest rates.

Steady Income

A steady income would give you an edge over other applicants. A strong work profile ensures that you can repay your loan installments on a timely basis without any defaults. Also, a good professional background is an indication of career growth and rising income which can be utilized to secure the best loan possible.

Debt-to-Income ratio

A debt-to-income ratio is the percentage of gross monthly income that is used to repay debt, such as student loans, credit cards, auto, and housing payments. The debt-to-income ratio (DTI) is a measure of the borrower’s financial health. Typically, a DTI of 50% or less is at least required to secure a loan.

Co-Signer Requirements

Many refinancing lenders will require a co-signer if you have a weak or substandard credit profile. Be prepared by having a co-signer identified beforehand. Finding someone on short notice is not only difficult but unfair to the co-signer if you are not giving them enough time to potentially take on such an important financial obligation.

Interest rate comparison

Get in touch with all the major student loan lenders in the market. Compare what they are offering especially in terms of interest rates. Evaluate every option possible to find the one which best suits your needs.

Beware of Frauds

Once you start searching for student loan refinancers, you might become a target of loan scammers. Here is an article to help you avoid falling prey to such scams.

Lender Selection

Choosing the right lender is the most critical part of the refinancing process. A thorough study about the lender is necessary. Some of the key considerations are:

Approval requirements
Options available in case you lose your job
Co-signer requirements
Prepayment option
Options available in case of Death or Disability
Default or Late fees
Lender’s reputation

Consider Income-Based Repayment Plans

Income-based student refinancing is an innovative approach for student debt refinancing. Utilizing Income Share Agreements (ISA), repayment becomes a percentage of your income. ISAs also provide inherent consumer protections. Defynance is the only one that offers them today. You can learn more and apply here.

Credit: Friend or Foe?

Sat, 24 Feb 2024 17:51:57 +0000

Today, it’s nearly impossible to get through life without a form of credit. And for many people, that’s not a bad thing. However, it can be a destructive thing if used improperly, so it’s always important to be mindful of how credit decisions can affect you. Every time you apply for a credit card or take out a loan, make sure you are doing everything you can to stay on the bank’s good side, or it can come back to bite you. Many future decisions in life are based on how you handle these responsibilities.

Why credit is your friend

Credit opens up doors to many opportunities that would otherwise be unavailable to you. The ability to get a college degree and own your own home is incredibly difficult without any money. Even as early as 18, you can start building credit. When managed well, this access can open up many doors, like owning a home or getting a degree. In this case, having the ability to take out a loan is great and can make many things that felt like they were out of reach, affordable. Many credit cards also give cash back rewards on everyday purchases. If you keep your balance low on these cards and don’t accumulate interest, it’s basically free money. Just remember not to carry a balance month to month and rack up interest.

How it can be your foe

Credit is fun to have, but dangerous when misused. If you end up taking out too much debt and carrying high balances on cards, you can get stuck in a cycle of debt. If this becomes the case, it’s not too long before credit becomes your enemy. Once your score is hurt, it also becomes hard to get it back up. Many negative actions will stay on a report for years, keeping your score low. With a low score, you lose access to good interest rates. Having high-interest rates will increase your risk of defaulting and keep you buried. It could even prevent you from owning a home because no company will want to take a risk on you. You could end up waiting even longer to achieve your goals if you mismanage your credit.

How to build your credit score

Many different factors go into forming your credit score, like how much of your available spending limit you use and if your payments are made on time. By knowing what factors will affect your score, you can learn to maximize it. The best way to keep your credit score as high as possible is to always make payments on time, keep your card’s balance low, and diversify the types of credit you use.

Having a good credit score while having student loans can be difficult. That’s why Defynance offers an income share agreement that has the ability to eliminate your student loan debt. An income share agreement allows you to pay only what you can afford, leaving you the freedom to live your life. Payments in these agreements are flexible and always affordable. They are interest-free and also protect you by preventing you from making payments if your income is below $25,000 a year.

#ProTip: Check your Credit Report at Least Three Times a Year for FREE!

Sat, 24 Feb 2024 17:51:41 +0000

If you have a credit card in your wallet, you have a credit history. If you have a loan or have borrowed money for a large purchase, you have a credit history. When it comes to financial dealings, it’s good to know your history. You don’t need to know every little detail though, and that’s where a credit report comes in.

Your credit report plays an important role when it comes to financial milestones like purchasing a home or buying a car. It tells the story of your credit history by letting potential lenders know if you pay your bills on time and how much debt, if any, you are carrying. You will want to ensure that it demonstrates your responsibility in terms of finances so it’s a good idea to review it on a regular basis.

Thankfully, under federal law, you have the right to get one free report each year from the three national credit bureaus (Equifax, Experian, and TransUnion). To make things easy, you can request your reports online from a single website: AnnualCreditReport.com.

By providing some identifying information like your name, places you have lived, Social Security number and your birthday, you will be able to get a detailed report that outlines all of your credit related data.

Be proactive and check this report at least three times each year or before you apply for a loan, insurance, or credit. Not only is it a good way to identify signs of potential identity theft, it’s also important to make sure there are no mistakes or errors that would cause you to miss out on lower interest rates.

Since you can get one free report from each bureau annually, consider spacing them out over the span of a year and get one every four months. This way, you can catch any discrepancies early to reduce any negative impact it may have. You have worked hard to build a good credit report so make sure to check it often.

Does my credit score really matter?

Sat, 24 Feb 2024 17:51:25 +0000

Credit is a pretty important factor in a lot of decisions, but does credit really matter? Credit will affect a lot of decisions in your life, including mortgages, car loans, and credit card approval. If it’s important for you to secure any type of funding to purchase something, then credit more than likely will be a factor. However, even if your credit is bad, you can still get approved for some loans, just not at as great of a rate as you could get.

If you don’t plan on using debt to get you through some of the bigger purchases in life, then your score may not be as relevant. In the end, it does matter what your score is anytime you try to secure any type of credit. The lower your score is, the worse the rate you will get from a lender.

What else matters?

Besides your credit score, there are some important factors that will go into your decision. One thing that a lot of creditors will look at is how stable your income is and how much of it goes towards other debt. This is called the debt to income ratio, which is just the amount of debt you pay each month divided by the amount of income you make each month. Typically, this should be under 60%, but the lower the better.

If my credit isn’t good, what do I do?

First, you should know what factors go into your score. Knowing this can consciously help you improve your score and make you aware of what factors matter. The main factors are the average length of your credit, the number of accounts you have, the total percent of revolving credit used, and your payment history. A big part of your score is just making sure you make your payments on time and don’t overuse your credit card. If you have a high revolving credit balance, work on paying that off. This is also good because typically revolving credit has higher interest rates than loans.

While your credit score may not be the only thing, it’s definitely an important part of many lending decisions. If you focus on improving the factors that make up your credit, over time it will fix itself. The good news is that many of the items that show up on a credit report aren’t permanent. Waiting until the negative points on your report disappear and continue to keep a clean record will improve your score.

Why You Should Learn How to Code

Sat, 24 Feb 2024 17:51:07 +0000

Did you know that 8 out of 10 top companies in the world are from the tech sector? And not only that, but almost a quarter of S&P500 is also from tech. That doesn’t tell us why we should learn to code, and it also does not mean that everyone in these companies knows how to code, but what it tells us is how much technology is dominating the world and how much people value that dominance.

“Everybody in this country should learn how to program a computer… because it teaches you how to think.”

– Steve Jobs

Where to start?

The truth is, coding has made things easier by giving us lots of solutions for the real world. It doesn’t matter if you are a non-programmer, beginner, or experienced person; there are multiple reasons you should learn to code.

Attractive Salary and Multiple Career Opportunities

Technology is vast, and we can find it all around us. Coding is a fundamental skill for programming. There are plenty of job opportunities or freelance gigs available if you know how to code. Currently, there is a shortage of programmers, and thus, they are in high demand. The average salary for these jobs is also attractive because it requires critical thinking and situation analysis.

Coding improves your problem-solving skills

Apart from easy job search, coding literacy can help you to improve your problem-solving skills. Coding forces you to find logic in simple behaviors; it teaches you how to structure big problems and divide them into small chunks. It is a healthy exercise for the left side of your brain.

Coding can help you save time in the long run

Have you ever been in a situation where you spend an entire hour every week to format the same report for your boss? Understanding coding can help you to automate your monotonous copy-paste weekly reports and spend your time elsewhere in your job. From macros in excel to some advanced automation tools are at your disposal. To use them effectively, you, of course, need to know some basic programming.

Coding can allow you to pursue passion projects

Coding is a fantastic skill for you if you’re the sort of person who has tons of ideas and wants to get started on everything yesterday. Not having to look elsewhere for a coder saves both time and money, plus it means you can keep changing and redesigning as your idea develops.

Anyone can do it

Unlike other tech skills that require a degree, there are free resources to start learning to code.

These are some great and free resources that can help you get started:

How to Get a Job After College

Sat, 24 Feb 2024 17:50:51 +0000

You just got your degree, now what? In most cases, you’re either going to begin working or pursuing another degree. If you’re one of the many who are looking to work afterwards, it can be difficult to find the right job after college. 53% of graduates are either unemployed or working in a job that doesn’t require a Bachelor’s Degree. With companies strugg ling to fill job s, now is a great time to bolster your resume and land that job.

Update Your Resume

Your resume is the first impression that the person who will be hiring you has, so you want to make sure it’s in tip top shape. Make sure that you have all your most recent positions listed with the correct dates and have 3-4 points about each position. Also, do not make the points a copy and paste of the job description, make them quantifiable achievements you had. For example, as the manager of XYZ Stores, do not put “I managed day to day operations of the store”. Instead use something like “Increased sales of stores by 20% by implementing….” and so on. You want to highlight what you achieved in the position to make yourself stand out. Make the reader know what you bring to the table. Use this link to write an amazing resume.

Utilize Your Network to help you get a job after college

The phrase “It’s not about what you know, but who you know” is a phrase for a reason. If you have a connection to someone in an organization, it greatly increases your chances of getting an interview and getting hired. Referrals make up 7% of applications, but 40% of hires, so getting a referral will greatly increase your odds of getting hired. Attend a career fair or networking event in your area to get in front of people who can refer you to their HR department. A personal connection is better than sending a resume online.

Use Job Board Websites

However, sometimes you need to just put your resume out there and hope for the best. Sites like Indeed are great when you’re looking for a job. Even if you don’t know anybody, you can still get an interview with a strong resume and cover letter. If you updated your resume and wrote a solid cover letter, you still have a good chance of getting an interview. Make sure you apply to all the relevant jobs that you can. It may be time consuming, but it’s worth it to get a good job. Remember to tailor your cover letter and resume to the job you’re applying for to increase your odds.

Ace the Interview to Get a Job After College

Once your resume gets you into the interview room, you still have to impress more than the other candidates. Make sure you practice some common interview questions so that you can answer many scenarios. Try to think of about 5 stories that you can bring up that follow the S.T.A.R. method; make sure they cover different skills through scenarios you’ve been in. Having some stories that can cover a variety of questions will allow you to speak in any situation and ace the interview.

Getting a job can be a long and frustrating process, but you can make it as easy as possible for yourself. The more you practice and continue to apply to programs, the better you will get. You will start to understand what the hiring managers look for and can begin to tailor to them. If you are struggling to find a job, don’t give up hope. There’s plenty of positions out there for you.