This kind of scenario usually takes place when students who have been recipients of one educational loan or the other cannot pay for it after graduation.
Many students have to take on many debt throughout their educational experience.
Sometimes the extra money is used for living expenses.
A number people usually plan to pay such loans as soon as they start working, but often times things do not really work out as planned after graduation.
A whole lot of unforeseen circumstances may come into play which may distort all the initial plans to pay for such burdens without recourse to consolidating loans.
Another reason that may make consolidating loans an inevitable option for students who owe various amounts of money in the form of outstanding loan payments is underpaying jobs.
This particular scenario has become so common recently in the face of the global economic meltdown such that, even people who still have jobs the wages of those jobs have been reduced to the extent that the jobs cannot sustain these borrowers comfortably.
In such situations, one of the few options available is to go for consolidating loans.
There are other minor conditions that must be met before these loans are disbursed or released to the beneficiaries.
The amount of these loans is usually dependent on how much money was borrowed initially for educational loans.
However, people who took unsubsidized loans usually end up requesting for more money than people who got subsidized loans.