I Have Student Loans - Do I Qualify For Debt Relief?

Do I qualify for debt relief for my student loans?
Any individual who is unable to pay back his student loans would have this question running through his mind and for most it will be a relief to find that loans taken for education and related expenses are eligible for inclusion under the debt relief program. As a rule, most unsecured loans can be added to this plan. Secured loans taken for home, car, etc. does not qualify under debt relief. Here are some frequently asked questions related to debt relief on student loans.

Do I qualify for debt relief on all my student expenses?
Usually most schools have an estimated COA (Cost of Attendance) worked out that covers tuition fee, allowance for your room and food expenses in school and off campus, costs of books and other educational material, utility bills, personal loans,transportation and miscellaneous expenses that could be incurred such as buying a personal laptop or medical expenses. All these expenses can be consolidated into a single account under the debt relief program to manage your student debt better.

Do I qualify for debt relief under the federal student loan consolidation program?
If you have taken a private funded loan for your education, then you will not be eligible for debt consolidation under the federal program. The federal student loan consolidation program is only applicable to federal student loans that were taken. The students or their parents who have been granted a federal student loan can get relief if they consolidate all their loans in a single account as the interest rates are much lower and only a single consolidated payment needs to be made every month.

I have a private student loan. Do I qualify for this?
Private loans carry higher interest rates and usually have shorter payback periods. It is advisable to consolidate your private student loans to help you manage your debt better. Consolidation could lengthen your payback period and ease your credit burden every month, as you have to make only a single payment. Student loan debt can be included and paid through the same plan.

Do I qualify for debt relief on the credit card bills that I incurred as a student?
A personal credit card gives students their first taste of financial freedom. However, it ends up being misused in most cases and quite often students use their loan money to pay off credit card debt, as the interest rates and late payment fees are higher. However, a debt counselor can also get your credit card bills included in your debt consolidation and advise you on overdraft protection accounts and how to use your credit card better. In fact, any unsecured loan can be included to your debt consolidation program to make it easier for you to pay back your debts in the long term without going into bankruptcy or having to face legal action from your creditors.