Defynance Fund

From Debt to Dignity: A Smarter Way to Invest in Education 

Farrukh
22.07.25 05:41 PM Comment(s)
butterfly flying out of jar

Odds are that especially younger people in your life, from your kids to colleagues to friends and other family members, are carrying a heavy burden of student debt. They did what society asked of them: pursued higher education with the hope of a better life. But in return they were penalized with compounding interest, mental anxiety, and delayed life milestones (i.e. buying a house, saving for retirement, starting families).

I saw this up close in my own family and community. The people I love were doing everything right, but they couldn't escape the math of student loans, which actually made their balances grow when confronted with financial hardship. As a financial practitioner who has built a career designing financial products and services for inclusion and impact, I knew we had to create something different.

That’s how Defynance was born; not just as fintech innovation, but as a mission to free people from the broken system of student debt. Defynance is formed by your fellow middle-class citizens tackling our middle-class crisis. We are striving to demonstrate that choosing to do good does not mean we have to compromise earnings or profit.  On the contrary, we aim to show that both are possible. It’s about time that finance starts working for the people instead of against them.

The Problem: A System That Profits from Struggle  

Today, more than 42 million Americans owe student loans. The average balance is over $38,375. But the real cost is harder to measure:

  • Over 70% of borrowers delay life milestones like saving for retirement, buying a home, or starting a family.
  • More than half report mental health struggles related to their debt.
  • Every missed payment means more penalties, more interest, more debt, and more pressure.

This isn’t just inefficient; it’s unjust and unnecessary!

The Defynance ISA: A Human-Centered Alternative  

At Defynance, we believe student loan refinancing should empower people, not punish them. That’s why we created the interest-free Defynance Income Share Agreement (ISA).

Here’s how it works: instead of repaying a debt with interest, our customers share a fixed percentage of their income for a set number of years. If their income drops, payments drop. If they encounter unemployment or financial hardship, payments pause. If they do well, they have multiple ways to end their Defynance ISA obligation sooner and also get a cash reward at the end.

There is no debt (paid off at the beginning), no interest, no credit score barriers (we don't make decisions based on credit scores), and no cosigners. Just a friendly, fair and flexible way to refinance student loans.

Our approach changes everything. It aligns our success with our customers' success because we invest in people by treating them as partners, not profit centers.

A New Asset Class: Doing Well by Doing Good  

To support this model, we built the Defynance Fund (Fund), envisioned to be an evergreen impact investment vehicle that allows performance or impact investors to earn responsible returns from a diversified portfolio of Defynance ISAs.

Since inception, the Fund has provided:

  • ~15% Net Annual Returns with historically low volatility (~0.5%)

  • Quarterly Passive Income, uncorrelated with interest rates or equity markets

  • Capital Preservation and Social Impact, all in one vehicle


In simple terms: investors earn more when our customers thrive. Investors get steady passive income while helping eliminate student debt. This is human first impact 

Risk-Adjusted, Impact-Aligned  

How do we keep risk in check?

We use our proprietary algorithm called PRAIS™ (Pricing & Risk Algorithm for Income Sharing) that analyzes 125+ data points to assess each applicant’s future earning potential. We focus on career growth, job stability, and income resilience. And we provide our customers with access to career support resources to help them succeed long-term.

This isn’t just smart finance. It’s compassionate underwriting. And it’s working.

The Bigger Picture: Re-imagining Finance for the Next Generation  

Defynance exists to tackle a crisis but more than that, our mission is to demonstrate that a finance solution built with humanity is the model for a better future of finance. One that’s measurable, inclusive, and sustainable.

We aim to eliminate $1 billion of student debt for 25,000 customers by 2030. We’re building an ecosystem where doing the right thing isn’t charity; it’s just good business.

For investors who want their money to reflect their values, this is a powerful opportunity. It's not about sacrificing returns. It’s about amplifying them, with purpose.

Join Us

If you believe that education should unlock opportunity not chain people to debt, then we invite you to join us.  If you believe that financing should help people thrive instead of trapping them then the Defynance Fund investment is for you. And if you’ve been waiting for a way to invest with both conviction and clarity, now is the time!


Together, we can transform lives, disrupt predatory lending, and deliver returns that compound, not just in dollars, but in uplifting individuals and families.

Let’s build the future of finance one customer, one investor, one life at a time.

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From time to time, Defynance will make opportunities for investments in ISAs available to investors who are qualified as “Accredited Investors” (as defined below) and who have expressed an interest in learning about such investment opportunities. Any prospective investors will only have opportunities for investments made available to them by the ISA Refi Fund only after verification of their status and an expression of specific interest.

When investment opportunities are being offered, a Confidential Private Placement Memorandum (a “PPM”) will be furnished to approved investors on a confidential basis. Sales of the securities may not be consummated unless prospective investors are provided with a PPM. In particular, you should carefully read the “Risk Factors” set forth in the PPM.

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