Consolidated vs consolidating
Refinancing: Replace a loan (or multiple loans) with a completely new loan, ideally a much better one.
The goal is often to get a lower interest rate to reduce your lifetime interest costs and monthly payment.
Without them, investors would not have an idea of how well an enterprise as a whole is faring.
GAAP dictates when and how companies should consolidate and whether certain entities need to be consolidated.
Thus, it is important to note that entities in which a company owns only a minority interest do not often need to be consolidated.
For instance, if Company XYZ owned only 5% of Company A, it probably would not have to consolidate Company A's financial statements with its own.
Each of the four companies pays royalties and other fees to Company XYZ.
In the real world, Generally Accepted Accounting Principles (GAAP) require companies to eliminate intercompany transactions when the consolidate their financial statements (that is, they must exclude movements of cash, revenue, assets or liabilities from one entity to another) so as not to double count.You could call this “simplification” instead of consolidation.True consolidation only makes sense (and is only possible) if your student loans originally came from government programs.Companies often break out their consolidated statements by division or subsidiary so investors can see the relative performance of each, but in many cases this is not required, especially if the company owns 100% of the division or subsidiary.
Source: Investing Answers Consolidation of matters in the federal courts is governed by Rule 42 of the Federal Rules of Civil Procedure.
You can “consolidate” private loans by bundling multiple loans together, but the major benefits of consolidation are reserved for government loans.