Defynance Fund

Defynance Income Sharing: Impact Returns Without Debt 

Farrukh
12.05.25 07:37 PM Comment(s)
Infographic of Defynance income-sharing model replacing student debt with impact returns

Defynance Income Sharing—A Debt‑Free Path to Impact Returns (Income‑Share Agreements Explained)

Student debt has ballooned into a $1.7 trillion drag on the U.S. economy—felt daily by 48 million Americans yet largely invisible to most private‑market investors. Compounding interest, ballooning balances, and rigid repayment terms keep graduates in a perpetual holding pattern, delaying homeownership and entrepreneurship. To solve that pain we need a financing model that values people, not principal. This is where innovative approaches like income-share agreementscome into play.

What Is Defynance Income Sharing?

Defynance income sharing is technically structured as an income‑share agreement (ISA) (Congressional Research Service brief on Income‑Share Agreements) but functions very differently from a loan. Customers share a fixed percentage of income for a preset term; if income drops, payments drop automatically, and they pause entirely during unemployment. Because there is no principal and no interest, balances never grow and customers finish on schedule. This model offers a distinct alternative to traditional student-debt refinancing options.

Why It Matters to Impact Investors

Traditional private‑credit products often profit when distress rises. Defynance flips that dynamic, making it particularly attractive for impact investing:

  • Shared Success – Investor cash flows rise only when customers earn more.

  • Built‑In Shock Absorber – Payments flex with income, limiting downside without the need for costly forbearance.

  • Quantifiable Impact – Every $25K invested retires real student debt, improves credit scores, and frees monthly cash flow for wealth‑building. This demonstrates the tangible social impact sought by impact investors.

A First‑Mover in Refinancing, Not Tuition

Most ISA programs cover future tuition. Defynance is the first platform that refinances existing student debt for working professionals, offering a novel approach to student-debt refinancing. Our proprietary PRAIS underwriting algorithm, ROEP career‑support ecosystem, and five‑year performance record—15 % net annual return with 0 defaults—prove the model can scale while staying non‑correlated to public markets.

Compliance note: Current CFPB guidance treats ISAs as private student loans. Defynance provides full Truth‑in‑Lending disclosures and holds required state financing‑company licenses, if applicable.


Income‑sharing finance replaces adversarial debt with partnership. For accredited and mission‑driven investors seeking double‑digit returns and tangible social benefit through impact investing, Defynance income sharing offers a new asset class—one that moves capital away from interest and toward human potential.                          
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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.

The information contained in the PPM may not be provided to persons who are not directly concerned with an investor’s decision regarding the investment offered hereby. Investors should make their own investigations and evaluations of any securities offered. The securities, when offered, will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any other securities laws. They will be offered for investment pursuant to the exemption from registration provided under Section 4(a)(2) of the Securities Act and exemptions from the registration requirements of applicable state securities laws only to persons who are “Accredited Investors,” as defined in Regulation D under the Securities Act. There will be no public market for the offered securities.

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