Can I consolidate 1 student loan

[Anonymous]

Hi,

I know this may sound crazy, but I only have 1 student loan and that 1 is a pain in the butt.  I began working on my credit a year ago and I don't know which is worse between my student loan and the car repo.  Because of not taking my repayment serious, this 1 student loan has been transferred to 2 different companies (collection agencies) outside of the originator. 

If someone cares to look this is the information based off my Equifax report.

The original loan was with Kentucky Higher Education Student Loan in 2001.  The loan amount was $3,500.

Weird but the payment status is listed as "Pays account as agreed"

The balance is listed as $0

From what I understand, due to non repayment, my loan was given to Nelnet for collection.  

The payment status for that is listed as "At least 120 day or more than 4 payments past due."

The balance is listed as $0

Then finally comes Kentucky Higher Education Assistant Authority

This one had almost hit wage garnishment but I called and now I'm paying $147 per month and have been doing that for about 2 years now.

I have it set up on automatic bank draft.  

After paying all the fees the balance is listed as $4,039.

The payment status is listed as "collection account"

I was told that I could not do rehabilitation ever again because I have already done that once.  It was a few years back.

Is it possbible to do a consolidation?  If so, how would that benifit me in my situation as far a credit repair?

[Anonymous]

I'm guessing that it's a federal loan because you mentioned rehabilitation. Yes, I just learned that the second time around that you can consolidate. The wording leads me to believe that you don't need multiple loans:
"Another option for getting out of default is to consolidate your defaulted federal student loan into a Direct Consolidation Loan. Loan consolidation allows you to pay off one or more federal student loans with a new consolidation loan.

To consolidate a defaulted federal student loan into a new Direct Consolidation Loan, you must either

agree to repay the new Direct Consolidation Loan under an income-driven repayment plan, or
make three consecutive, voluntary, on-time, full monthly payments on the defaulted loan before you consolidate it.
Note: If you choose to make three payments on the defaulted loan before you consolidate it, the required payment amount will be determined by your loan holder, but cannot be more than what is reasonable and affordable based on your total financial circumstances."
https://studentaid.ed.gov/sa/repay-loans/default/get-out
Now, this won't remove your default this time, but it will likely improve your credit. You'll be getting positive payments towards your payment history and you'll have a loan in good status.
I don't think it's crazy; I think it's a smart, creative idea! Congrats on further rebuilding your credit!
Note: one thing I have read is that garnishment payments will be in addition to the voluntary payments. So keep that in mind. It should still be a low enough amount though.

[Anonymous]

Awesome!  Thank you so very much