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! 

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.