1. When you have a number of federal school loans, you need to make monthly payments for each of these lending options, and that could add up to quite a bit. These monthly obligations - all with varying interest rates - can really weigh you lower financially. Once you consolidate national student loans into one single financial loan, your monthly instalment rates are significantly cut down as you will be making settlement for one solitary loan. This really is a huge advantage with a point in your own life when you need to worry less about debts while focusing more on your education.