From another CB site:

"Actualy student loans are VERY easy to clear up.

The first step is to consolidate all loans. When you consolidate.. you basically rehabilitate the loan and therefore you can dispute the lates..

I disputed all my lates before hand and also disputed my accounts as duplicates.. this happens a lot when your account gets transferred around.

go to this website to find out about consolidation. You can do this while loans are in default. It isnt hard at all."

Is this true?

Nope. Consolidation and rehabilitation is like comparing apples to oranges. The only same thing about them is that your loan comes out of default.

With rehab, the law requires the holding lender to clear the trade line. With consolidation, nobody is under any obligation to change anything.

Uh, so not true! Rehabilitation and consolidation are two totally different things. Rehab is a special program that allows you to make 12 consecutive, on-time payments, after which your loan will be re-purchased and the default notation is removed. Consolidation just puts all of your loans together into one total loan, possibly extending your repayment period and/or interest rates, thereby reducing your payments. Anyone can consolidate at any time, but rehab only applies to defaulted loans. Actually, rehab itself only guarantees that the default notation will be removed -- while most do remove the lates as well, they aren't required to (and only the guarantor is required to even remove the default notation). You can consolidate defaulted loans, but you are required to participate in the income contingent repayment plan. It also does not remove any lates/default notations. You can also consolidate your loans after you're finished with rehab and get the best of both worlds.

This may have randomly worked for this particular poster, but it's definitely not the norm and I wouldn't recommend anyone follow this path on the hope that it will work for them too (it could, but it's not very likely).

I hope this helps!