Defynance - Blog #Income Share Agreements

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.