Many students with multiple federal student loans have been very excited about Federal Student Loan Consolidation. Just what is Federal Student Loan Consolidation, and why should you consider it?

You have achieved your goal of college graduation, and now you are faced with the inevitable: repaying your (Federal) Student Loan. Often it's not just one loan looming over your head, but several. What is the best way to pay them off? Firms like FederalConsolidation.org and Next Student can get you started.

Federal Student Loan Consolidation allows you to combine your existing eligible federal student loans into a single loan. When you apply for a Federal Consolidation Loan, you are taking out a new loan to pay off all or a portion of your original eligible federal student loans. This loan has a fixed interest rate and a repayment term of up to 30 years, depending on the total amount of your student loan debt. Consolidating can offer the same interest rate on the same amount of money, but with a longer repayment period, lowering your monthly payments. With no prepayment penalties, the borrower can pay back the loan at their own pace, yet still have a longer term if needed. And consolidation can decrease payments up to 60%, as extra monies paid on the loan go towards the principal.