@Midhun Raj Welcome to Microsoft Q&A Forum, Thank you for posting your query here!
Based on the error message: Since you are using Microsoft Azure for Students Starter Offer, it doesn't support creating Azure SQL Databases.
However, with this subscription you can create Azure SQL Databases. (Get started with 12 months of free services, 55+ services that are always free, and USD200 in credit. Create your free account today with Microsoft Azure.)
Issue isn't related to Azure storage account, It's the limitation of Azure Student subscription
Azure free account FAQ: https://azure.microsoft.com/en-in/free/free-account-faq/
Additional information:
See here Failed to create new Storage account
Register 'Microsoft.storage' in the resource providers menu in the Azure subscription. Select the item and click on 'register' on the top of the page.
Please let us know if you have any further queries. I’m happy to assist you further.
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