Federal Student Loan Consolidation should usually be done separately and not be clubbed with private loans consolidation as the resultant loan would be treated as private. This leads to losing certain benefits like the extended grace period after graduation that federal loan borrowers have and also schemes for deferments in some conditions e.g. military service. Federal Student Loan Consolidation can prove to be really helpful Private loans consolidation could be done separately choosing a private lender, although it’s always advantageous to have a federal loan with lower interest rates and in some cases government subsidies. Besides having a federal loan assures that there are no hidden charges or service charges that keep mounting without one’s knowledge.