Consolidation is used to reduce and simplify monthly payments by rolling multiple loans into one. However, it can also lengthen the period of repayment and therefore increase the total amount you will pay in interest over the life of the loan. In the past, many borrowers consolidated their federal student loans to save money on interest payments. This “benefit” was not as great after 2006 when interest rates became fixed. You may lose some rights by consolidating. This is most clearly a problem if you consolidate federal loans into a private consolidation loan (you would lose the rights associated with federal loans).