Student loan consolidation is when a student or former student combines all of his loans into one loan. This typically makes repayment much easier considering there will be only one payment each month to one collector rather than several payments to many different collectors. The overall idea in student loan consolidation is to lower monthly payment for the borrower. This will stop payment from being late or going into collections. Student loan consolidation can be used for one loan bur it’s usually used for borrowers with several loans from several different lenders.