Yeah, I consolidated back in 2010. And your understanding of it is correct. They offered me a rehab option or something like that, where I would make payments for eight months, then be in good standing again, or I could consolidate 16k (five loans) into one and be in good standing in time for the upcoming semester, which was important to me. So the route I took was more expedient, but also more expensive. The Sallie Mae loans went into collection with ECMC. I consolidated the 5 ECMC into one, distinct loan. Now I think that loan has been transferred somewhere else. Navigating the student loans on my credit report is interesting, to say the least. Down the rabbit hole!
Your situation sounds very fishy, indeed. But you're almost out of the water, which is good! And it's critical if we went to be back in school at any point or have decent credit.
Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU706 EQ???
Goal Score: 750 750