If you’re thinking about trying to consolidate federal loans you took out as a student, consider these: First, make certain you are eligible.

At least one of your Federal Family Education Loans, Direct Loans or Direct PLUS loans must be in deferred, grace, or repayment status.

It is a little confusing because after you graduate, you probably will write one check to the lender each month to pay for the entire amount you borrowed.

As long as you make the payments on time and in full, the multiple student loans showing on your credit report will not have any negative effect on your ability to get new credit.

Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.

So how do you find the best student loan company for you?As part of the process, you’ll need to provide details about your existing federal student loans, and choose a federal loan servicer and repayment plan for your new consolidation loan.You have to complete the application in a single session, so do your research before you start. You can consolidate all your federal loans or just some of them.Loan cannot be consolidated if they are still in-school status. The biggest attraction to consolidating student loans is the reduced monthly payment via the income based repayment plans.One thing that’s important to keep in mind is that your repayment term may be extended if you have already been paying on your loans for a long time.