11 Nov Do Student Loans Count as Debt with Debt Counselling?
In today’s competitive world, the demand for higher education is increasing. Many students pursue their academic goals by taking out student loans, which help them pay for tuition, books, and living expenses. Student loans are a common way of financing education, but they also come with a cost.
It’s essential to understand that while student loans offer opportunities, they have the potential to become a severe financial burden if not managed properly. You might ask yourself if student loans count as debt with debt counselling. Keep reading to find out!
Student Loans and Debt Counselling
Since most people have a common understanding of what student loans are, we’ll go ahead and answer the burning question. So, do student loans count as debt with debt counselling? The short answer is no. Student loans are not eligible for debt counselling because they are considered a form of investment in human capital rather than a consumption expenditure.
Moreover, student loans have different repayment terms and conditions than other types of debt, such as grace periods, income-contingent repayment plans, and loan forgiveness programs. These features are designed to make student loans more affordable and manageable and reduce the default risk.
Although student loans do not count as debt with debt counselling, they can serve as an indicator and cause of debt. The potential issue arises when student loans accumulate a large amount of interest, making it difficult to repay them in full, especially if you have a low income or face unemployment. In this scenario, what started as a helpful way of financing education turns into debt, posing a serious challenge to your financial stability.
But There Is Hope: Debt Review
If you’ve been struggling to pay your student loans or have other debts affecting your financial well-being, debt review can help. Debt review is a strategic approach that serves as a guide in understanding and improving your financial situation. Debt review is like a well-designed plan that identifies areas of high debt and suggests corrective measures.
The purpose of debt review is not to deprive you of your educational goals but to ensure that your financial health remains strong, allowing you to pursue your career without worrying about your financial future. This is done by consolidating all your debt into one monthly payment, which your debt counsellor negotiates with your creditors at the lowest rate possible.
True North to the Rescue
When faced with a scenario where student loans potentially pose a financial challenge, debt review with True North Debt emerges as the ideal solution. Our team of financial experts is equipped to assess your unique economic scenario with impartiality and precision.
Recognising the distinctiveness of each student’s financial narrative, we strive to create a personalised debt repayment plan that aligns perfectly with your specific requirements. With our guidance, financial stress can be lifted off your shoulders, and you can get a renewed sense of financial relief.
Get Financial Relief Today
All-in-all, student loans do not qualify as debt for debt review, but they can still contribute to financial distress. However, you don’t have to suffer from the pressure of student loan repayments. Take the path towards achieving financial wellness today by contacting us.
By undergoing debt review with True North, you can overcome the challenges of student loan-related financial issues and reach a stable financial state where you can pursue your education without worry!