Refinancing student loans can be stressful and time consuming. As you do research, you realize there's a lot of companies out there, but it looks like they all provide the same service. And all these companies just replace your student loans with another loan. With all these companies offering the same thing, is there a better way to refinance student loans?
What is the new way to refinance student loans?
Defynance offers a new and fairer way to refinance your student loans. Instead of just replacing your loans with another loan, they pay off your student loans and switch them to a debt-free income share agreement. An income share agreement, or ISA, bases payments off of a small percentage of your income, so they're always affordable. Your payment will be a set percent of your income for a set time period, which means your payments will fluctuate with your income.
This program has many benefits, including protections for when things aren't going so well in life. If your income ever falls below $25,000 per year, your payments will pause, until you get back on your feet. And the ISA is interest free, so you don't have a growing balance while you aren't making payments. This helps you stay protected when you're at your lowest points.
And what if you do well? Wouldn't you just end up paying way more than you would with a normal loan? Defynance also prevents this with a payment cap that grows over time. The payment cap is the maximum that you will pay in the ISA and if you ever reach that amount, the ISA ends. It's not expected to be reached, unless you do really well (which is a good thing). The cap starts out small and grows the longer you are in the ISA, so the earlier you reach it, the less you pay.
How does the Defynance ISA Work?
Defynance looks at your situation and caters their ISA to it. Each ISA is individually priced, so it's not a one-size-fits-all solution. Instead we look at your potential and base your income share around that. You will also get multiple options, so you can choose the ISA that fits your life.
Defynance even helps you save for your future with a self-equity account. When you sign up for an ISA, a set percent of each payment you make will be set aside. At the end, if you didn't default, you will get the money that was set aside. This helps you save for your future. It can be used to set up an emergency fund, invest, or even reward yourself.
If this sounds like a better alternative to your burdensome student loans, you can sign up here.
