Hello Everyone,
I am new to this board (joined today), although I have been lurking for a while now. 
Here's my student loan situation...
I have over $46k in student loan debt, all except 2, were through Sallie Mae. Through the years, I had some lates (up to 120 days) due to hard times. Once I realized that they were reporting late, I applied for deferments to bring them back in good standing. However, the 2 that were not through Sallie Mae, I completely forgot about, until they went into default and my tax refund was offset. Anyway, to make a long story short, I have since consolidated all of my student loans through Direct Loans under the ICR plan. Thus far, I have made 2 consecutive on time payments. My question is, am I able to get the negative reporting from Sallie Mae (before they went into deferment and were reporting as 120 days late) and the default student loan tradelines removed? Right now Sallie Mae is reporting "Pays as Agreed". Should I try to remove this, or will it hurt my score even more?
ok, i admit, i had trouble understanding your post, so if i'm not answering your questions correctly, i probably didn't get it 
i don't see how you would be able to get sallie mae to delete the negative reporting since it is accurate. unless you have paperwork stating that the deferments were retroactive & cover the time period that you missed, it seems like sallie mae is in the right, here.
now, when you say your tax refund was offset because of your other non-sallie mae loans, did your taxes completely pay those off? if so, then they are not included in your consolidation, right, because they're closed? so i don't think there would be any way to get those removed either.
so, i hoped i helped a little. i'm not an expert, but that's my logic on your situation. at any rate, the short answer is that consolidation does not remove any lates or other negative reporting. rehabilitation of defaulted loans does, from what i hear, but it sounds like a lot of people still have trouble even when they go that route.
Laz is correct. It is usually recommended that you do a loan rehabilitation program prior to consolidating a defaulted loan. This helps remove the bad mark from your credit report. Unfortunately, that is not an option for all as many of these programs require you make "normal" payments for 9-12 months, and then your loan still has to be purchased back by the same lender, or purchased by another lender.
As Laz said, you should validate what loan was paid off with your tax return to make sure that amount was not included in your colidation. You certainly do not want to be paying twice. At this point, it's best to keep making all of your payments on time. As a good payment history starts replacing the hiccup, then your score will start to increase and the baddies will start to hurt less. This is going to take some time though.
Current Score: Eq: 823 Tu: 830I apologize for the confusion. My tax refund last year (2009) was offset. But I still had a balance of $3000. So this year, because I did the consolidation (with the ICR repayment), it was not offset. I understand. I thought because I've now consolidated all my loans, I could get Sallie Mae and NCO to remove their tradelines and just have the one tradeline from Direct Loans. But I guess that is not possible. Thanks you both for your help. It cleared up a lot! I will be sure to make all my student loan payments on time from now on