Student consolidation loan is a situation where series of loans are combined together to make one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It often reduces the size of the monthly payment by extending the term of the loan beyond the 10-year repayment period.One good thing about it is that you can consolidate your loan with any lender without any problem or hassle. Most lenders do require minimum balance before they will consolidate your loans. There are many loan service companies that you can approach for this service.However, when seeking Student Consolidation Loan Services, the following vital points must be your guiding principles.1. There must be a wide range of repayment plans options available for you to choose from. Plan should include graduate and extended repayment plans that will make you pay smaller monthly payments over a longer period of time.2. The company in question must offer federal, private and the combination of the two types of consolidation. This will enable you stay with only one company for the effective management of your loan.3. The company must have a good customer care that is ready to assist anytime the need arises.4. It must be convenient and flexible.5. Your students’ consolidation loan company must be able to offer competitive rate of interest at low finance charges.6. It must allow for savings.7. Employ the services of companies that offer student loans and consolidations to keep all academic debt in one location for easy assessment and management.8. There should be provision for future consolidation in the agreement.9. The full terms of the contract or agreement should be properly and clearly stated and disclosed to you before you finally agree to it.The company in question must give you a grace period whereby you can choose to pay back at a future date.Consolidation makes the repayment process to be very easy and involves a slight increase in the interest rate. If you are one of those having problem in making payment, you can choose from the repayment terms options available for the federal loans income contingent payments. These terms were adjusted to compensate for a lower monthly income.A graduated repayment provides lower payments during the first two years after graduation, while the extended repayment allows for extension of term of the loan without consolidation. However, each of these options increases the total amount of interest paid.Finally, students’ consolidation loan is beneficial to students’ credit rating. However, not all federal student consolidation loan companies report their loan status to all credit bureaus. Also, this consolidation does not incur any fees for the borrower unlike the private sector debt consolidation. Private companies make money on student loan consolidation by reaping subsidies from the federal government.For a better understanding of this subject matter, there are some factors you must consider when you want to select a service company. These factors as analyzed above must be borne in mind in your day to day activities. This will make you build on a very solid foundation as far as loan consolidation is concerned.