My last statement says that I have a principal balance of $3180, and Fees & Costs of $800 for a total of $3980.

I currently have $150 garnished from each paycheck (every 2 weeks), so after 9 months that will be $2850, plus whatever my rehab payments are. That will leave my loan balance at under $1000 so no rehab.

What is my next best step? If I understand correctly, this loan if paid off may come off my reports at the end of this year, because it is pretty old.

I am considering just taking out a personal loan to pay it off, so that it will come off my credit reports.

If I call, and make an offer to them, do you think that they would give me a settlement offer and take off some of the "Fees & Costs"?

Since they are already guaranteed a certain amount of money from the garnishment, more than likely they will not settle or very minimally. Also with a default on your report and a garnishment all ready in place, you wont likely get a very good rate even if you can get a loan.

You can consoldiate. That will pay off the loan and the garnishment will stop.

To consolidate, do I go through the Direct Loan Servicing Center, or am I able to do it elsewhere?

Anything else I need to know about consolidating?

I will do a search on consolidating now, thanks.