Loan Consolidation | Federal Student Aid advantage of this strategy, also known as the debt avalanche, assumes you haven’t consolidated all of your loans, because you’ll be attacking the loan with the highest interest rate most aggressively. that means you have just one loan to pay off and keep track of instead of several, and that can help reduce the chance of a late or missed payment. sometimes use the terms "consolidate" and "refinance" interchangeably when talking about their federal loans. (for a rundown of the different types of federal loans, see our resource on the best student loans. federal education loans made on or after july 1, 2006 have had. I have some that are subsidized and some that are unsubsidized. you’re pressed for time, here’s a quick summary of the major points i drive home in this guide:The best reason to consolidate student loans is to stay organized. total is more than ,150 when we add up the amount paid on each separate loan with a standard 10-year repayment plan, at a combined monthly payment of about 0. because the index fluctuates over time, so will your interest rate — and, therefore, your monthly payment. you decide you can pay more than 0 a month because you want to pay off the loans faster and reduce the total amount of interest you pay on them. more: all of your federal student loan repayment options in one chart4. throwing the extra 0 at it each month, on top of the original , means you’ll have it paid off in just two years, according to this debt snowball calculator. you decide to pay off that ,000 consolidation loan over 20 years instead of 10, your monthly payments would drop to about 0, freeing up an extra 0 a month. loans that were sold to the us department of education. may get to choose a repayment plan that fits your financial situation better. federal consolidation loan has a fixed interest rate that is the. rid of high interest debt with a 0% balance transfer credit card. bankrate reserves the right (but is not obligated) to edit or delete your comments. banks and other non-government lenders will consolidate your student loans, and a handful will allow you to mix in some federal student loans as well. this can be a pro or a con, depending on what interest rates are doing and whether your loans already have fixed rates. to ask when considering collegesdeveloping & narrowing down your college listthe simplest way to write essays10 false college mythsbuilding your brag sheetcollege choice questionsstudent contributors.