Loan consolidation is an option where the borrower refinances one or more Federal educational loans into a new single loan. Normally, students are eligible to consolidate during the loans' grace period or once the loans have entered repayment. In most case, students who consolidate during their grace period forfeit the remainder of their grace period.

There are a number of reasons students choose to consolidate their loans. A few examples include:

1. Ease of one payment vs. several payments to different lenders or for different loans;
   
2. Fixed interest rate; and
   
3. Lower monthly payments.

To determine if loan consolidation is the right choice for you, contact your loan lender or financial aid office.
A loan calculator is a useful tool for determining monthly repayment amounts and also to determine if loan consolidation makes sense for you.