Defynance Fund

The Next Big Asset Class Isn’t Interest-Based; It’s Income-Based

Farrukh
11.08.25 08:53 PM Comment(s)
person calculating bills

Alex, a special education teacher in Georgia, was carrying $40,000 in student debt and paying nearly a quarter of their income toward rigid monthly loan payments. Traditional refinancing was not an option without a co-signer, and high interest rates meant Alex would remain in debt for another decade.

With the Defynance Income Share Agreement (ISA), everything can change for Alex. Their debt would be paid off improving creditworthiness; refinancing would be possible on their own merits without a co-signer; monthly payments would drop to an affordable percentage of income, and, because there is no interest, every dollar would go toward financial freedom. For the first time in years, Alex will be able to save for a home, invest for retirement, and actually be able to plan for a future empowered with financial freedom.

Alex’s story isn’t unique—it is the tip of a $1.77 trillion student debt crisis iceberg. 

A Market in Crisis is Actually an Opportunity

The U.S. student debt burden now stands at $1.77 trillion, growing by nearly $0.49 trillion annually Over 45 million Americans are trapped in a broken loan system that delays home ownership, limits career mobility, and suppresses economic growth


For investors, this isn’t just a social crisis; it’s a massive untapped asset class. The scale of the problem creates demand for scalable, alternative financing models that deliver both strong return potential and measurable impact.

Why Defynance ISAs Are Built for Scale

Defynance’s interest-free ISA platform is designed from the ground up to align investor returns with refinancing customer success:

  • Income‑Aligned Payments – Customers pay a fixed percentage of income, not a fixed expense; payments pause automatically during hardship.
  • Payment Caps – Protects customers from overpaying while mitigating adverse selection risk.
  • Proprietary Underwriting – Data‑driven model that uses 125+ data points to forecast career earnings, reducing default and unemployment risk.
  • Holistic Support – Career coaching and financial wellness tools improve customer outcomes.

Key Investment Merits

  • Large TAM – Over ~$775 billion in U.S. postgrad refinancing potential

  • Predictable Income – Quarterly investor distributions from a diversified ISA pool

  • Low Correlation to Markets – Portfolio diversification with minimal volatility

  • Impact‑Driven Returns – Competitive double‑digit net returns (~15% historically) with measurable social outcomes

Positioned for ESG and Social ROI Leadership 

Defynance directly advances four UN Sustainable Development Goals:

  • SDG 1: No Poverty

  • SDG 4: Quality Education

  • SDG 8: Decent Work & Economic Growth

  • SDG 10: Reduced Inequality


Investors increasingly demand financial and social alpha—Defynance delivers both. Every dollar invested refinances student debt into financial freedom while generating consistent, scalable returns.

The Inflection Point Is Now

Recent reforms to the student debt landscape including caps on federal graduate and parent PLUS borrowing, the rollback of income-driven repayment options, and resumption of interest on SAVE plan loans, have triggered a market shift toward private alternatives.

Legislative momentum, borrower activism, and economic pressure have brought this crisis to a tipping point. Defynance is uniquely positioned to absorb this surge with a mission-driven, scalable, and financially sound platform.

For impact-driven investors seeking growth in an underserved financial vertical, the opportunity is clear: Defynance is transforming a $1.77 trillion problem into the next big asset class—one that’s interest-free, income-aligned, and built for performance.

Learn more about how you can invest in human capital and earn double-digit returns while making a measurable difference.
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