In 1986, the federal government created the Federal Loan Consolidation Program. The program essentially allows borrowers to consolidate their government-sponsored student loans into a single consolidation loan.The Advantages Of Federal Loan Consolidation ProgramsFederal student loan consolidation programs offer a range of advantages and benefits to student and graduates who hold multiple federal student loans such as PLUS Loans, Federal Perkins, Stafford, HEAL, FFELP and Direct Loans.The advantages include the ability to potentially lower one's monthly loan payments. This is because the loan can be stretched out over more years than are the grad's currently-held federal loans. Also, it offers one the chance to simplify his or her financial life by having only one lender to pay each month - rather than two, three or more.Another strong advantage is that the borrower can lock in a single, low interest rate rather than dealing with multiple loans at different fixed and variable interest rates. (Note that the interest rate of the federal consolidation is calculated by taking the weighted average of the interest rates of the borrower's existing federal student loans, rounded up to the nearest 0.125%).Consolidation is a convenient process. A borrower can apply online, and the application process can be completed in a few weeks.3 Steps To Approval:1. Decide Whether It Makes Sense For You To ConsolidateConsolidation is not for everyone. For example, you may not want to consolidate your loan if you only have a few years left for repayment on most or all of your existing loans.2. Take An Accounting Of Your Existing LoansSit down with pen, paper and a calculator and add up your current balances and interest rates. You can even perform a weighted average calculation to determine what your new interest rate will be, if you like.3. ApplyYou can apply by finding an application for a federal consolidation on the U.S. Board of Education website.Apply for a federal consolidation loan and realize the benefits of lower monthly payments and a simplified repayment process.