Education loan consolidation is used at all levels of education from undergraduate to a doctorate. Often loans can pile up rather quickly during ones college career. Loans may be used to pay for tuition, books and living expenses. Loans being taken out over several years can accrue very rapidly. Taking loans out to obtain an education is very typical for most students in this generation considering going to college is an ever increasingly expensive. When consolidating an educational loan most often used during a time after graduation when I students loans are no longer deferred. Consolidation of educational loans is done by a third party who makes money off of fees for the consolidation.