Student loan consolidation is a smart option for the many students, parents, graduates and alumni that are now seeking to consolidate federal student loans debt. Federal student loan consolidation will lower interest rates and save money. Student loan debt consolidation has become popular and many college student loan consolidation centers and services are out there to consolidate all types of loans; be them federal, direct, medical, law, Stafford, PLUS, government and private student loans. Today’s Interest rates are the lowest they have been in decades. Consolidating federal student loans allows you to lock into a federal consolidation loan at a low FIXED rate, averaging 2.85%.