The problem with these advertising spots is that they only talk about the benefits. When you consolidate your debt, you are taking multiple payments and putting them into one. Along with this, you no longer have to decide who should get paid first and how much you should send each creditor.2. How much money are you paying out in interest every month?

Both consolidating and refinancing can take away the headache of managing multiple student loans, but there are pros and cons to consider before you apply.

A third factor is that you don’t trade fixed-rate debt for variable-rate debt.

While a variable rate loan can look very enticing because of its low interest rate, there is a risk with this type of loan.

You'll have one payment each month and one interest rate that's based on your current loans' rates.

Refinancing works in somewhat the same way as consolidation, except private lenders (and not the federal government) offer refinancing of your federal or private loans into one loan.