Consolidating your student loans generally means one lender will group together multiple loans which you have taken out. Instead of managing numerous simultaneous payments and interest rates, the consolidated loan will compile them into a single loan at a new, fixed rate. The main benefits of consolidation are that: 1).You will only be responsible for a single account with a single financial institution. 2).The interest rate for your consolidated loan will not change over time., 3) Consolidation potentially lower your monthly payment by extending the term of your loan. (Source:http://www.mahalo.com).