What is the difference between consolidation and refinance?

Student loan consolidation: Merging of loans into one big loan.  Doesn’t save! Doesn’t drop your payment!

Consolidation can cost you for 3 reasons:

1. Can’t target prepayments anymore
2. Every time you pay off a loan, the required payment drops… once you consolidate, it won’t happen any more because it’s one big loan
3. Lose flexibility to go into new plans in the future

Student loan refinance: Replacing an old loan with a new loan at a lower interest rate.  Goal is to save money.

Confusing because sometimes when you refinance you also consolidate multiple loans into one loan.