You borrow enough money to pay off all your current debts and owe money to just one lender.
For such installment loans, the important factors are how much total debt you owe and, of course, most importantly if you have missed any payments. It can be helpful if you have education debt from multiple lenders or student loan guaranty companies.
To consolidate student loan debt, you get a single loan that is then used to pay in full your outstanding debt from the various lenders who provided you with student loans.
All companies, including mortgage lenders charge a lending fee.
Student loans usually appear on a credit report as multiple loans, but that doesn’t look bad to lenders.
The reason has to do with the way student loans actually work as opposed to how we think about them.