Many students use student loans as a means to finance higher education and carve out a better career for themselves. One of the main reasons for taking up higher education (especially when you have to borrow money to get it) is the lure of better and higher paying jobs that a person can get after completing their education. So, in that sense, it does make good sense to borrow money.

Federal government makes available several types of Federal student loans to suit the needs of various students. The private money lenders too have recognized this need of the students and offer various graduate loans, college loans etc.

For student that borrow money, Federal student loan consolidation comes as a great relief. Subject to certain terms and conditions (and eligibility criteria), the debt ridden students can apply for a Federal college loan consolidation. The main attraction in going for Federal loan consolidation is that the immediate financial burden on the student is reduced i.e. the total monthly outgo is reduced.

This is generally achieved either through increasing the repayment term of the Federal student loan or through getting the Federal consolidation loan at a lower interest rate than the Federal student loan interest on the current Federal student loan. Consolidating student loans can end up saving you money.