Student Loan Consolidation
A student loan consolidation, or consolidation of student loans, is where a student or other borrower replaces multiple existing loans with a single loan. Essentially the new loan repays the outstanding balance on the existing loans. There are several potential advantages to loan consolidation. The first is that one may be able to secure a lower interest rate on the new loan, which effectively lowers the amount of interest you will have to pay. The second is that one now has a single lender to deal with, rather than multiple lenders. In the United States, the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP) offer loan programs which can help students consolidate Federal Perkins Loans, PLUS Loans, and Stafford loans.

There are a number of ways to initiate the consolidation process. If you are a university student in the United States, a good place to start is the financial aid office at your university or college. They can help you to explore the options that are relevant to you, and also walk you through the process. In addition, the website of the U.S. Department of Education also has information on the programs mentioned above.