Consolidate or Rehabilitation my loans

[Anonymous]

Hey guys so I took student loans when I was younger and like an idiot buried my head in the sand trying to ignore them while i got my life together..stupid right?

Ive finally started to tackle my credit issue and work on my student loans! I've had a problem come up and would like suggestions on what I should do!

7 months ago I was contacted by a credit collector saying wage garnishment would occur unless I went through the rehab/consolidation process.

Currently Im in 7 of 9 payments for the process All Federal loans! A direction subsized loan at 4.5% for $4974 A direct Unsubsidized loan at 6.8% for $2633. (Through premier credit btw) Like an idiot i thought these were my only two loans until I received a phone call from a gentlemen working for reliant solutions representing the college i went too

Last loan is Federal Perkins loan 4,000 5%

He is STRONGLY pushing me to consolidate my loans through studentloans.gov.

He isnt asking for money/services just a confirmation letter before he does so, saying that if i choose not to the loan will be garnished like before.

New loan would be 11,607 at 5.25%

Is this a good idea? Should I just rehab this loan as well? I was told consolidation isnt the best for credit repair but he suggested otherwise (selling me im sure)

Thanks!

P.S As I've done research ive started to realize maybe i should just rehab the last loan, and THEN consolidate all of them?

[SCF]

Rehab is generally the better route, unless you're in a time sensitive situation and can't wait for the 9 months of payments + time to find a new servicer.

Once your loans are out of default, you can consolidate them, or not, as you choose.  Any income-driven payment plan you choose will consider your entire loan burden, but having them all with one servicer can certainly simplify handling your loans.  You may also want to look into the special terms of your Perkins loan.  There are types of forgiveness that are only for Perkins that you lose access to if you consolidate, so don't give up that benefit until you're sure you don't need it.