A consolidation is the process of uniting all of your student loans into one new loan. Consolidation programs exist for both federal student loans as well as for private student loans. For many people, consolidation will ease the burden of having multiple lenders, with various loan balances, interest rates, monthly payments, terms etc. By consolidating, the borrower would have only one loan, with one monthly payment, interest rate, and term. This makes the loan more manageable, and reduced the risk of accidental default on the student loan.
Generally speaking, federal loans have far greater benefits to them than private loans, and should be look at prior to considering private consolidations. Federal consolidation are also much easier to qualify for, do not require a credit check, and is available to borrowers in default on their loans. This is not to say that a borrower should not consider a private consolidation, as this can still benefit the borrower greatly as well.
Federal Student Loan Consolidation exists for borrowers who applied and have federal student loans, and are no longer attending school. This program has many benefits, and can be taken advantage of by most borrowers of federal loans. For more information on federal student loan consolidations, please follow this link.
Private loan consolidations are available by many private institutions. These loans lack a lot of the benefits that federal loan consolidations offer, but may still be used and considered if beneficial to the borrower. For more information on private student loan consolidations, please follow this link.