You can consolidate private. Not sure who told you that you couldn't. You just can't consolidate both federal and private student loans into the same consolidation loan. Depending on who your lender is, they may charge you an upfront fee. But, you should talk to the lender directly, to try to work something out. I'm sure if the judge sees that you actually want to pay, they will be more willing to work with you. because regardless of if they issue a judgement, if you don't have the money, you don't have it. private consolidation loans are credit driven. so, you have to have usually atleast 630+ to qualify on your own, you can get a co-signer though if you have bad credit, but they have to have very good credit. hopefully, this will help you out. but, get this done ASAP. Good luck!!