For students, an increasingly common and beneficial method of repaying student loans is through consolidations. Using student loans consolidation, the many loans a student may have taken over the course of the years can be compressed into a single loan. Consolidation is available from two types of agencies - federal and private. Both options have the potential to offer benefits, including better interest rates, a lengthened term, discounts, and a single monthly payment. However, federal loan consolidation program are considered a much better option for students since they offer forbearance and deferment, both rights that aren't granted in a private loan. Generally speaking, these consolidations are a one-time action, meaning that you can't repeatedly consolidate your loans. When consolidating, you need to assure yourself that you've chosen the right program, one that is beneficial, before entering into an agreement.