Education Financing · Defynance
Defynance Student Loan Refinancing (Income Share Agreement)
Co-Founder & CEO, HalalWallet
Facts are re-verified against Defynance's published materials; this page updates when the provider's terms, rates, or coverage change.
Student loan refinancing built on an income share agreement (ISA) rather than a loan. Defynance pays off your existing student debt and you share a fixed percentage of your income for a set term. There is no interest, and the obligation ends when the term ends, whether your payments add up to less than, the same as, or more than the amount financed. Defynance says the share never exceeds 15% of income and the term is never 20 years.
Payments pause when income falls below $2,000 a month or after a job loss, a payment cap limits the total, and you can prepay at any time. To qualify you must be a US citizen or permanent resident, hold a degree or professional certification from an accredited institution, and currently have a job.
There is no minimum credit score and no co-signer. Defynance says the program is halal on the strength of an unnamed expert opinion; no scholar's review is published.
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What is the Defynance Student Loan Refinancing (Income Share Agreement)?
Student loan refinancing built on an income share agreement (ISA) rather than a loan. Defynance pays off your existing student debt and you share a fixed percentage of your income for a set term.
- Contract structure: Income Share Agreement (ISA).
- Available in all 50 states.
- Shariah oversight disclosed: No Public Review.
- Verified against Defynance's published materials on 2026-11-13.
Source: HalalWallet (halalwallet.us)
Key facts
- Structure
- Income Share Agreement (ISA)
- Minimum credit score
- No minimum (credit is one factor among many)
- Financing purposes
- Refinance existing student loans
- Availability
- all 50 states
- Shariah oversight
- No Public Review
- Shariah board
- No Public Review
- Provider founded
- 2019
- Last verified
- 2026-11-13
Facts are taken from Defynance's published product materials and were last verified on 2026-11-13. Fields the provider does not publish are omitted rather than estimated.
Our take
Defynance goes after the hardest riba problem many American Muslims carry, existing student debt, with an income share agreement instead of another loan: it pays off the balance and you share a fixed percentage of income for a set term, with no interest and payments that pause when income drops. The limits it publishes are consumer-friendly (share capped at 15%, term under 20 years, a payment cap, prepayment allowed).
The gap is certification. Defynance's halal claim rests on an unnamed expert opinion, scholars who have published on the model disagree with it, and key numbers such as the cap and fees are only disclosed in a quote. Worth a quote if you are stuck in interest-bearing student loans, alongside a conversation with a scholar about the contract.
Strengths
- No interest and no compounding: the obligation is a share of income, not a debt balance
- Payments pause automatically below $2,000 a month of income or during unemployment
- Obligation ends when the term ends, even if you have paid less than the amount financed
- No minimum credit score and no co-signer required
- Total payments are capped, and you can prepay or buy out early
Watch-outs
- No named scholar or fatwa stands behind Defynance's halal claim, and published scholarly analyses of the model conclude against it
- If your income rises sharply you can pay more than you would on a loan, up to the payment cap
- The cap, fees and financing limits are not published
- You must already hold a job and a degree or professional certification to qualify
- The agreement is legally binding and missed payments are reported to the credit bureaus
Is the Defynance Student Loan Refinancing (Income Share Agreement) halal?
The case for this product rests on one thing Defynance states plainly: the agreement is not a loan and there is no interest. You do not owe back the amount financed. You owe a fixed percentage of your income for a set term, and the obligation ends when the term does, even if the total paid is less than what was financed. During unemployment or when income drops below $2,000 a month, payments pause and nothing compounds.
That removes the defining mechanic of a conventional student loan. What is missing is a religious review anyone can check. Its only statement is a November 2020 blog post saying that, after gathering an expert opinion on Islamic finance guidelines, it made sure the program follows them and is halal. The expert is not named and the opinion is not published.
An income share agreement is also not automatically permissible just because it avoids an interest rate: money is advanced today in exchange for a larger, uncertain sum later, and the total can exceed the amount financed up to the payment cap.
The scholars who have published on the model (Amanah Advisors, and a fatwa from SCBC that names Defynance without having read its contract) conclude it is not Shariah-compliant and resembles a loan with a variable return. Treat this as an interest-free alternative that has not been certified, not as a certified halal product.
Shariah oversight disclosed by Defynance
Defynance says an unnamed expert opinion found its program halal (2020 blog post); no scholar, board or fatwa is published. Published scholarly analyses of the income share model conclude it is not Shariah-compliant.
HalalWallet reports the Shariah documentation a provider publishes. We do not issue certifications; consult a qualified scholar for a personal ruling.
What you get
- Not a loan: Defynance pays off your student debt and you share a fixed percentage of income for a set term, with no interest
- Share never exceeds 15% of income and the term is never 20 years (Defynance's stated limits)
- Payments pause when income falls below $2,000 a month or after a job loss, and nothing compounds while paused
- Payment cap limits the total you can pay; prepayment, term reduction and buyout options are available
- No minimum credit score and no co-signer; open to US citizens and permanent residents with a degree or professional certification and a current job
- Cash back reward after you complete the payment term
- Payment history is reported to the credit bureaus, both positive and negative
- Includes GROW, Defynance's career platform for job search, resume help and upskilling
Cost and terms
No interest. You share a fixed percentage of income for a set term, quoted individually by Defynance's PRAIS pricing model with several percentage and term options to choose from. Stated limits: the share never exceeds 15% of income and the term is never 20 years.
Defynance's own illustration is 4% of income for 10 years in exchange for $15,000. Payments pause below $2,000 a month of income, and a payment cap limits the total paid. Fees, the cap multiple, and minimum and maximum financing amounts are not published (verified 2026-11-13).
How it compares
Other education financing providers we list in the U.S., ordered by each provider's HalalWallet Index grade. The grade covers the provider's education financing products as a group, not an individual product.
| Product | Structure | Shariah oversight | Availability | Provider grade |
|---|---|---|---|---|
| Defynance Student Loan Refinancing (Income Share Agreement) (this page) | Income Share Agreement (ISA) | No Public Review | all 50 states | Not graded yet |
| A Continuous Charity Education Financing | Qard Hasan | Third-Party Certified | 34 states | |
| Qard Hasan Foundation Education Financing | Qard Hasan | No Public Review | Texas | Not graded yet |
Other Defynance products
- Defynance Fund
Investing · Closed-end private fund holding income share agreements (accredited investors only)
Where it's available
Defynance lists the Student Loan Refinancing (Income Share Agreement) as available in all 50 states.
Availability may vary by product and can change; verify with Defynance before applying.
Frequently asked questions
Is the Defynance Student Loan Refinancing (Income Share Agreement) halal?
The case for this product rests on one thing Defynance states plainly: the agreement is not a loan and there is no interest. You do not owe back the amount financed. Contract structure: Income Share Agreement (ISA). Shariah oversight disclosed by Defynance: No Public Review. HalalWallet reports what the provider documents; we do not certify products.
How does the Defynance Student Loan Refinancing (Income Share Agreement) work?
Student loan refinancing built on an income share agreement (ISA) rather than a loan. Defynance pays off your existing student debt and you share a fixed percentage of your income for a set term. There is no interest, and the obligation ends when the term ends, whether your payments add up to less than, the same as, or more than the amount financed.
What does the Defynance Student Loan Refinancing (Income Share Agreement) cost?
No interest. You share a fixed percentage of income for a set term, quoted individually by Defynance's PRAIS pricing model with several percentage and term options to choose from. Stated limits: the share never exceeds 15% of income and the term is never 20 years.
Defynance's own illustration is 4% of income for 10 years in exchange for $15,000. Payments pause below $2,000 a month of income, and a payment cap limits the total paid. Fees, the cap multiple, and minimum and maximum financing amounts are not published (verified 2026-11-13).
What are the minimums for the Defynance Student Loan Refinancing (Income Share Agreement)?
As published by Defynance: minimum credit score No minimum (credit is one factor among many). Confirm current requirements with Defynance before applying.
Where is the Defynance Student Loan Refinancing (Income Share Agreement) available?
Defynance lists this product as available in all 50 states. Availability can change and may differ by state; verify directly with Defynance.
What are the alternatives to the Defynance Student Loan Refinancing (Income Share Agreement)?
In the same category we also list A Continuous Charity Education Financing (HalalWallet Index B), Qard Hasan Foundation Education Financing. Compare every option side by side on our Halal Student Financing hub.
When was this Defynance product information last verified?
HalalWallet last verified the Defynance Student Loan Refinancing (Income Share Agreement) details against Defynance's published materials on 2026-11-13. Rates, fees, and availability can change after that date.
See something outdated or wrong?
This data was last verified . Report a correction and we will re-check the primary source, fix the record, and log the change on our public corrections page.
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Scholars rule; we organize the evidence. HalalWallet is an independent research and comparison site for halal financial products. It is not a lender, bank, broker or adviser, and it is not a fatwa body.
What we do
- We document each product's contract, Shariah oversight, costs and availability, with the date we last checked.
- We show the range of scholarly opinion on contested questions, with sources.
What we do not do
- We do not lend, hold money, open accounts or take applications. You apply with the provider.
- We do not issue fatwas or certify any product as halal. Rulings belong to a scholar you trust.
- We do not give personal financial, legal or tax advice.
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Before you decide, finish with three checks:
- Confirm current terms and halal compliance directly with the provider. Their quote is final.
- Read the contract structure (Murabaha, Ijara, Musharakah and so on) and any published Shariah board opinion.
- Bring your shortlist to a qualified scholar or licensed adviser, so the conversation is about your situation, not the basics.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-11-13
How to cite this page
Preferred format (HTML):
https://www.halalwallet.us/providers/defynance/student-loan-refinancing-income-share-agreement, retrieved 2026-11-14).For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.