When there are lots of student loans going out there and one way to deal with them is by getting student loan consolidation. Consolidation helps you combine all the loans- whether private or federal, to get a single loan with fixed interest rates, and easier monthly payments over a large period of time.

You can find 2 types of student loans in the US: private student loans, and federal student loans.

If a college student puts together all his loans and forms a consolidated loan, then the federal consolidation will support him by offering him reduced interest rates. Apart from that, the monthly payment duration will be fixed according to his preferences.

If you are a college student, then you can search for a federal loan consolidation program with the help of various banks and financial organizations. But there are also some drawbacks. Though the monthly payments become less, but since the duration is extended, your overall payments become more. On the other hand, there are many advantages of federal loans:

Lower interest rates
Federal debt consolidation provides lower interest rates than the consolidation packages provided by private organizations.

Budget friendly
There are options for recurring payments, and the monthly installments are easy to pay. They will not pose a risk to budget overflow.

Single loan
When all the loans are combined into one, there is only one payment to be paid per month.

If you are a college student, and you are not pursuing any course in a college, and you have paid back every loan on time- within the grace period, then you are eligible for federal loan consolidation. You can avail the minimum amount of $10,000.

The student debt consolidation loan will not include private education loans. You can apply for the federal debt consolidation loan from many organizations and providers, for example, credit unions, banking companies, and secondary markets.
When you take a federal loan, that amount becomes tax deductible, and so it is not advisable to mix private and federal loans. If you mix these loans, then you will reduce your advantages.

Private loans do not offer as many advantages as federal loans, but these are easier to avail. So in case you are unable to get yourself a federal loan, you can go for private loans.

Since there are many differences between federal and private loans, with more advantages falling in the federal side, it is best to get federal one. But since private loans are easier to get, many students get private loans. If you want to get student loan consolidation, it is best you go with federal one.

But even if you get private loans, you should not combine them and get consolidation, since you would just reduce the benefits that the federal loan is providing you.